MERC Approves ₹2.19 Lakh/MW Tariff for MSEDCL’s BESS Project By Saur News Bureau/ Updated On Thu, Mar 27th, 2025 MERC Offers Compensation To SJVNL On Delayed Payment From MSEDCL The Maharashtra Electricity Regulatory Commission (MERC) has approved the development of the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) 1.5 GWh Battery Energy Storage System (BESS) project. MERC approved a tariff of ₹2,19,001/MW/Month for 12 years in response to Maharashtra State Electricity Distribution Co. Ltd’s (MSEDCL) petition for procuring 250 MW/500 MWh (base capacity) and 500 MW/1,000 MWh (additional Green Shoe capacity) of BESS. MERC stated that power procured from projects under this petition would count toward meeting the Energy Storage Obligation. Additionally, it directed that the Battery Energy Storage Purchase Agreement should be executed within 30 days of this order by the bidders. The regulator also addressed concerns regarding the Renewable Energy Obligation (RPO). It noted that MSEDCL’s petition sought tariff adoption for 250 MW/500 MWh with an additional Green Shoe capacity of up to 500 MW/1,000 MWh for standalone BESS installations at MSEDCL substations. Comparison With Previous BESS Tenders MERC justified and stated, “The tariff discovered in MSEDCL’s tender is in line with current market rates. The discovered tariff for BESS tenders by drawing a comparison with other e-auctions conducted by utilities / RDA. MERC noted that SECI in its erstwhile 1000 MW/2000 MWh, BESS-II held in Jun-2024 awarded JSW Neo Energy, 500 MW/1000 MWh 3,81,000 in September 2024, and Reliance Power was awarded, 500 MW/1000 MWh project at the tariff of Rs.3,81,999 in September 2024.” MERC Orders MSEDCL to Refund Faulty Open Access Charges Also Read The judgment compared the tariff awarded by MSEDCL with other RIAs. The petition found that GUVNL awarded the 250+250 MW/500 MWh, Storage Phase-III tender in Gujarat to Gensol Engineering Limited for 500 MW at a tariff rate of Rs. 3,72,978. Whereas, It awarded GUVNL’s 250 MW/500 MWh, Storage Phase-II, to Gensol Engineering Limited, (70 MW) at Rs. 4,48,996 per unit and IndiGrid 2 Limited, 180 MW at Rs. 4,49,996/unit PM-KUSUM: Shakti Pumps Bags ₹23.91Cr. Work Order From MEDA Also Read Quantum Of ESS Procurement Allowed For Procurement MERC in its ruling resolved the question that the Energy Storage Obligation to the extent of energy stored from RE sources would be considered as a part of the fulfillment of the total Renewable Purchase Obligation (RPO). The ruling further explained, “As per RPO (Amendment) Regulations, 2024, the Energy Storage Obligation shall be calculated in energy terms as a percentage of total consumption of electricity and shall be treated as fulfilled only when at least 85% of the total energy stored in the Energy Storage System (ESS), on an annual basis, is procured from renewable energy sources.” To utilize the stored energy MERC in its ruling clarified, “In the proposed BESS capacity procurement, MSEDCL has planned to utilize day-time excess solar energy from MSKVY 2.0 projects for charging purposes and hence proposed procurement can be considered for fulfilling Energy Storage obligation.” MSEDCL Has Early Win in 2025 With 100 Day Solar Rooftop target Achieved Also Read Tags: BESS Project, Maharashtra, MERC, MSEDCL, Tariff