The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company Limited’s (MSEDCL) proposal to procure long-term bagasse-based cogeneration power through competitive bidding. This paves the way for grid-connectivity and a power purchase agreement (PPA) for 200 MW of bagasse-based cogeneration projects in the state.
MSEDCL wanted MERC’s approval to initiate a competitive bidding process followed by reverse e-auction to procure 200 MW grid-connected bagasse-based cogeneration power with the upper tariff ceiling of ₹4.00 (~$0.054)/kWh. It had also proposed these projects be made eligible to meet MSEDCL’s non-solar renewable purchase obligation (RPO) requirement.
After reviewing the petition, MERC has fixed 18 months from the date of signing of PPA as the commissioning period against the previous 13-month commissioning period. MERC has also extended the PPA duration from 13 years to 20 years. Read More