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The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of 50 MW of solar power by AEML SEEPZ Limited (ASL) under the Solar Energy Corporation of India Limited’s (SECI) Tranche-XI scheme. ASL had filed a petition seeking approval for this procurement at the tariff discovered through a competitive bidding process. The power purchase aims to meet the company’s electricity demand and fulfill its Renewable Purchase Obligation (RPO). ASL, a deemed distribution licensee operating in the SEEPZ Special Economic Zone, sought approval for a Power Supply Agreement (PSA) with SECI at a levelized tariff of ?2.60/kWh, plus a trading margin of ?0.07/kWh, for 25 years. The petition was filed under Sections 63 and 86(1) of the Electricity Act, 2003. ASL’s objective is to ensure a stable and cost-effective power supply while reducing reliance on short-term electricity procurement. To secure long-term solar power, ASL initially conducted its bidding process. However, despite multiple bid extensions, only a single bidder, Juniper Green Energy Private Limited, submitted an offer at ?3.34/kWh for 50 MW. Since this tariff was significantly higher than prevailing market rates, ASL approached SECI, which offered power under its Tranche-XI scheme at a more competitive rate of ?2.67/kWh, including the trading margin. SECI had conducted a transparent bidding process in which 14 bidders submitted bids for a total of 5,050 MW. Of these, 10 bidders qualified for an e-reverse auction, where a tariff of ?2.60/kWh was discovered. The Commission analyzed market trends and found that the tariff proposed under SECI’s Tranche-XI scheme was in line with other recent solar power auctions. Other competitive bidding rounds had discovered similar tariffs, such as ?2.56 to ?2.58/kWh in SECI’s Tranche-XIII and Tranche-XIV auctions, ?2.52 to ?2.53/kWh in SJVN’s auction, and ?2.60 to ?2.65/kWh in NTPC’s 1,500 MW solar auction. In its ruling, MERC noted that ASL’s demand currently ranges between 10 MW and 35 MW. The addition of 50 MW of long-term solar power will help replace costlier short-term procurement and align with ASL’s Resource Adequacy Plan. The Commission also referenced the Central Electricity Regulatory Commission’s (CERC) order from January 2025, which approved the adoption of the discovered tariff for 900 MW of solar projects under SECI’s Tranche-XI scheme. Considering these factors, MERC approved ASL’s PSA with SECI at ?2.60/kWh plus the ?0.07/kWh trading margin, subject to conditions specified in the CERC order. This procurement will be considered part of ASL’s RPO compliance. ASL is required to submit a final copy of the PSA to the Commission for record-keeping. The decision supports Maharashtra’s renewable energy goals by ensuring stable and cost-effective solar power procurement. It also strengthens the long-term viability of solar energy integration into the state’s electricity grid while reducing dependence on fossil fuels. |
