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The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL)’s petition for the procurement of a 250 MW/500 MWh standalone Battery Energy Storage System (BESS), with an additional green shoe capacity of up to 500 MW/1000 MWh. The competitive bidding process aimed at integrating renewable energy into the grid, reducing peak power procurement costs, and fulfilling MSEDCL’s Energy Storage Obligation. MSEDCL floated the tender on August 16, 2024, for battery storage projects at its substations, following guidelines from the Ministry of Power. A total of 14 bidders participated in the process, with Pace Digitek Private Limited emerging as the lowest bidder at ?2,19,001 per MW per month. The discovered tariff was significantly lower than recent BESS tenders conducted by other utilities like SECI and GUVNL, making the project cost-effective. The commission reviewed MSEDCL’s justification for the procurement, considering the need to store excess solar energy generated under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0 and supply it during peak demand hours. The estimated cost of storage was calculated at ?3.65 per unit, while the overall effective cost, including input energy, was ?7.27 per unit. The commission determined that the proposed procurement would result in a net saving of ?1.07 per unit, leading to an estimated ?702.99 crore in savings over the contract period of 12 years. MERC ruled that MSEDCL had conducted a fair and transparent bidding process, adhering to Section 63 of the Electricity Act, 2003. The approval of this project aligns with Maharashtra’s renewable energy goals, enabling better utilization of solar power and improving grid stability. The commission directed MSEDCL to finalize and execute the Battery Energy Storage Purchase Agreement (BESPA) with the successful bidder within 30 days. |
