MSEDCL to Procure 2,500 MW Round-the-Clock Power

06 Apr 2026 CW Team

The Commission approved the proposal with several deviations from standard bidding guidelines, stating these measures were necessary to ensure commercial viability, attract competitive participation and secure cost-effective tariffs. MERC permitted a shift to a single composite tariff fixed for 25 years to transfer cost escalation risks to developers while ensuring tariff certainty for the utility and consumers. Supply norms were relaxed to annual supply of 80 per cent and monthly supply of 70 per cent while requiring 90 per cent supply during peak hours.

The Commission further approved larger minimum bid sizes of 1,250 MW or 2,500 MW, deviating from the standard 250 MW threshold, and eased financial eligibility criteria to broaden participation. The regulator noted that stricter norms had previously limited interest and that the larger bid sizes align with the scale of bundled solar capacity for efficient utilisation. Maharashtra's electricity demand is projected to reach nearly 33 GW by 2029-30, with rising consumption from data centres and other energy-intensive industries driving interest in round-the-clock green power as the state pursues a target of 65 per cent renewable share by 2035-36.

Under the framework at least 51 per cent of the supplied power must be traceable renewable energy to meet renewable purchase obligations and large consumer sustainability requirements, with the remainder met through non-renewable sources or storage. MSEDCL has been directed to initiate the bidding process and will approach MERC for tariff adoption after the tender is completed. The regulator said the package seeks to attract competitive bids, secure long-term supply certainty and convert surplus solar generation into a reliable resource for the state.

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) will procure 2,500 megawatts (MW) of round-the-clock power through a solar bundling model after approval from the Maharashtra Electricity Regulatory Commission (MERC). The procurement will use 5,000 MW of contracted solar capacity bundled with firm power from non-renewable sources or storage to provide supply. The regulator said the structure aims to convert intermittent renewable generation into firm, dispatchable power while optimising surplus solar output during daytime hours. The Commission approved the proposal with several deviations from standard bidding guidelines, stating these measures were necessary to ensure commercial viability, attract competitive participation and secure cost-effective tariffs. MERC permitted a shift to a single composite tariff fixed for 25 years to transfer cost escalation risks to developers while ensuring tariff certainty for the utility and consumers. Supply norms were relaxed to annual supply of 80 per cent and monthly supply of 70 per cent while requiring 90 per cent supply during peak hours. The Commission further approved larger minimum bid sizes of 1,250 MW or 2,500 MW, deviating from the standard 250 MW threshold, and eased financial eligibility criteria to broaden participation. The regulator noted that stricter norms had previously limited interest and that the larger bid sizes align with the scale of bundled solar capacity for efficient utilisation. Maharashtra's electricity demand is projected to reach nearly 33 GW by 2029-30, with rising consumption from data centres and other energy-intensive industries driving interest in round-the-clock green power as the state pursues a target of 65 per cent renewable share by 2035-36. Under the framework at least 51 per cent of the supplied power must be traceable renewable energy to meet renewable purchase obligations and large consumer sustainability requirements, with the remainder met through non-renewable sources or storage. MSEDCL has been directed to initiate the bidding process and will approach MERC for tariff adoption after the tender is completed. The regulator said the package seeks to attract competitive bids, secure long-term supply certainty and convert surplus solar generation into a reliable resource for the state.

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