MERC’s No To Wind-Solar-Thermal Bundling for OA Consumers In Maharashtra

In an order that left some hope for a future rethink on the issue, the Maharashtra Electricity Regulatory Commission (MERC) has rejected a plea by the Captive Power Producers Association(CPPA)  in the state to direct the key state discom/s to allow bundling of solar, wind and thermal power for use by captive consumers too. MSEDCL as the respondent in this case had refused to grant connectivity to such setups.

CPPA sought amendments in the existing Open Access Regulations to facilitate the establishment, operation, scheduling, and commercial settlement of Wind-Solar-Thermal hybrid power plants in Maharashtra. They also requested interim relief to allow connectivity for such plants. Their petition referenced various sections of the Electricity Act 2003 and several MERC regulations related to distribution and transmission open access, deviation settlement, and renewable energy tariffs.

In particular, the petition mentioned the Ministry of Power’s (MoP) Bundling Schemes from 2018, 2021, and 2022, which promote flexibility in generation and scheduling through bundling renewable energy with thermal power. Various state policies, including those from Maharashtra, support hybrid power projects.

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) and other respondents argued that the petition was not maintainable as no state policy exists for wind-solar-thermal hybrid projects. They highlighted differences in regulations for renewable and non-renewable energy sources and emphasized that new regulations or amendments require a public consultation process.

On the issue of interim relief as well, MSEDCL objected to the petition and highlighted issues with current regulations, including the need for separate applications and bank guarantees for renewable and non-renewable projects.

MERC’s Decision: MERC rejected the petition, noting that the MoP Bundling Scheme applies to agreements between generating stations and distribution licensees, not to open access or captive transactions. MERC directed the Grid Co-ordination Committee to undertake a detailed study to explore the implementation of the MoP Bundling Scheme in Maharashtra and to submit a draft framework for consideration.

Next Steps: The Grid Co-ordination Committee is tasked with conducting a study, consulting stakeholders, and submitting a draft framework to MERC within six months.

The full order can be viewed here.