MSEDCL Seeks Approval for Procuring 500 MW RE With Storage to Fulfill RPO

MSEDCL has filed a petition with MERC for approval on procurement of 500 MW renewable energy with energy storage facility for 25 years

The Maharashtra State Electricity Distribution Corporation (MSEDCL) has filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) for approval on procurement of 500 MW flexible and schedulable power from renewable energy sources with energy storage facility for 25 years and approval of the related tender documents.

In its petition, MSEDCL has requested the commission to consider such procurement for the fulfillment of the discoms Renewable Purchase Obligations (RPO).

The discom in its submissions to the state commission has declared that it has already contracted 9,852 MW of renewable power as on March 31, 2019, and has planned to contract around 8,000 MW of renewable energy especially solar power to meet its RPO targets. By the next financial year, it expects around 16,500 MW of renewable power is expected to be fed into the grid, says the petition.

In its petition, the discom has cited the non-availability of sufficient quantities of RECs and increased rates in the market to cause difficulties in purchasing Renewable Energy Certificates (RECs), and in part fulfil its RPO. And that, “In such a scenario with increasing targets of RPOs on Year to Year basis, it is necessary that MSEDCL should contract sufficient Renewable power through the long term contracts.”

Key features of the tender documents that the discom has prepared for the same are given below:

a. Maximum Capacity: 500 MW for 8 hrs schedulable in two slots with +/-10% capacity. The minimum bid capacity to be quoted shall be 100 MW

b. Maximum MUs per annum – 1460 MUs.

c. The Minimum Project size of a single Renewable Project with storage facility shall be 100 MW to be interconnected at a single Delivery Point.

d. The Net-Worth of the Bidder for the last financial year shall not be less than Rs 2 Crores/MW of the bid quantum for being eligible to participate in the bidding process.

e. Liquidity: A minimum annual turnover of Rs. 25 crores during the previous financial year.

f. Technical Eligibility Criteria:

1. The owner of Renewable power projects, having ownership of either wind or a solar power project of minimum capacity of 25 MW at one location continuously for not less than one year as on original date of bid opening. (OR)
2. The Engineering, Procurement & Construction (EPC) contractor of renewable power projects having commissioned a wind or a solar power project of minimum capacity of 25 MW at one location as on original date of bid opening. (OR)
3. Developers of renewable power projects, who have installed a Renewable power Order in Case No.167 of 2019 Page 5 project of minimum capacity of 25 MW at one location as on original date of bid opening. (OR) iv. Who have completed the financial closure of at least 50 MW Renewable power projects and such project is under execution as on original date of bid opening.

g. The bidder should also demonstrate storage credentials for respective storage technologies.

The state commission compared the SECI’s latest tender for 1200 MW solar projects with peak power supply documents with MSEDCL’s RfS submitted with its petition. “On comparison, it is observed that there are many Clauses in SECI’s documents which if adopted by MSEDCL would improve the clarity of MSEDCL’s RfS document,” the commission stated.

In its order, the commission has asked the Discom to rectify all the deficiencies and errors in its RfS document. After which, it can approach the commission with a new petition.

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