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					</table>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has adopted a weighted-average levelized tariff of ₹6.38 (~$0.066)/kWh for procuring 750 MW of round-the-clock (RTC) power from grid-connected renewable energy projects, complemented by power from other sources.
The procurement will be undertaken by Adani Electricity Mumbai Distribution (AEML D) under a 10-year power purchase agreement with Powerpulse Trading Solutions.
MERC also directed AEML D to submit the executed power purchase agreement with Powerpulse Trading Solutions after its execution.
Background 
AEML D filed the petition seeking adoption of the tariff discovered through a tariff-based competitive bidding process for procuring 750 MW of RTC renewable power to meet its future electricity demand and renewable purchase obligation (RPO) requirements.
MERC had earlier permitted AEML D to initiate competitive bidding for RTC renewable power with specific <a href="https://www.mercomindia.com/merc-allows-deviations-in-adani-electricitys-1-gw-rtc-power-procurement?" target="_blank" rel="noopener">deviations</a> from the standard bidding documents, including changing the delivery point to the Maharashtra State Transmission Utility periphery, deleting the payment security fund requirement, permitting the variable fuel component to be quoted on the bid submission date, and reducing the power purchase agreement term from 25 years to 10 years.
These changes were approved after an earlier tender failed to attract bidders due to concerns about the shorter contract duration, stringent availability requirements, and mandatory renewable energy supply conditions.
Following the revised bidding process, AEML D <a href="https://www.mercomindia.com/adani-bids-1-5-gw-round-the-clock-power?" target="_blank" rel="noopener">invited</a> bids for 1,500 MW, comprising 750 MW, with an equivalent greenshoe option.
Four companies submitted bids totaling 1,500 MW. Powerpulse Trading Solutions offered 750 MW, while JSW Neo Energy, MB Power (Madhya Pradesh), and Goldi Solar each offered 250 MW. After technical evaluation, all four bidders qualified for the financial bid stage.
An electronic reverse auction resulted in final tariffs of ₹6.38 (~$0.066)/kWh for Powerpulse Trading Solutions, ₹6.39 (~$0.066)/kWh for JSW Neo Energy, ₹6.40 (~$0.066)/kWh for MB Power, and ₹6.56 (~$0.068)/kWh for Goldi Solar.
Powerpulse emerged as the successful bidder with the lowest tariff.
The tariff proposed by Powerpulse comprised a fixed renewable component of ₹5.25 (~$0.055)/kWh and a fixed non-renewable component of ₹4.18 (~$0.043)/kWh, along with escalable components for fuel and transportation.
The company proposed supplying the contracted power through solar projects at Khavda in Gujarat, wind projects at Bhuj in Gujarat, and thermal generation from Maharashtra.
It informed AEML D that maintaining the contractual obligation of 80% annual and peak availability, together with a minimum renewable share of 51%, would require installing approximately 775 MW of solar capacity, 300 MW of wind capacity, and 540 MW of thermal capacity for balancing.
After the auction, AEML D sought a reduction in the discovered tariff. Powerpulse declined, citing the significant investments required to meet the stringent supply obligations.
Based on the evaluation committee&#8217;s recommendation, AEML D issued the letter of award to the company in August 2025 and sought tariff adoption from the Commission. It argued that the procurement would reduce its dependence on volatile short-term power markets while ensuring long-term compliance with RPO requirements.
During the proceedings, AEML-D also filed additional submissions comparing its tender with recent long-term thermal tenders floated by Assam and Bihar distribution companies. It argued that although those procurements resulted in tariffs ranging from ₹6.075 (~$0.063)/kWh to ₹6.80 (~$0.071)/kWh, they did not require suppliers to provide at least 51% renewable energy or assume renewable generation variability risk.
The utility also compared its procurement with MSEDCL&#8217;s pumped storage and battery energy storage tenders, stating that those procurements resulted in effective energy costs exceeding ₹10 (~$0.104)/kWh and therefore did not represent appropriate benchmarks for comparison.
Subsequently, AEML D informed the Commission that it had sought clarification from Powerpulse after learning that the company had also participated in MSEDCL&#8217;s medium term procurement process using the same proposed thermal source.
In response, Powerpulse confirmed that, if required, it would supply balancing power from either Vidarbha Industries Power or Mahan Energen Unit 2, in accordance with the alternate-source provisions contained in the draft power purchase agreement. A
AEML D requested the Commission to expedite tariff adoption to avoid delays in project implementation and renewable procurement.
Commission&#8217;s Analysis
The Commission found that AEML D had conducted the procurement in accordance with the Ministry of Power&#8217;s 2020 guidelines for RTC renewable energy procurement. The Commission noted that the bidding documents incorporated the deviations it had previously approved, pre-bid meetings were held, clarifications were issued, adequate time was provided for bid submission, and four bidders participated, indicating sufficient competition.
It observed that although AEML D had initially compared its procurement with recent thermal tenders, a more appropriate benchmark had become available after MSEDCL concluded its own 2,500 MW RTC renewable tender. In that procurement, MERC had adopted a tariff of ₹5.90 (~$0.061)/kWh under a 25-year power purchase agreement.
However, the Commission noted an important distinction between the two procurements. MSEDCL&#8217;s tariff was quoted at the Central Transmission Utility periphery, requiring the procurer to bear interstate transmission charges and transmission losses.
MERC estimated these additional costs at approximately ₹0.56 (~$0.006)/kWh, comprising ₹0.35 (~$0.004)/kWh toward interstate transmission charges and ₹0.21 (~$0.002)/kWh toward transmission losses. As a result, MSEDCL&#8217;s effective delivered tariff at the Maharashtra periphery would be approximately ₹6.46 (~$0.067)/kWh.
By comparison, AEML D&#8217;s tariff of ₹6.38 (~$0.066)/kWh was quoted directly at the Maharashtra periphery, with the supplier bearing all interstate transmission charges, losses, and associated risks. The Commission therefore held that the AEML D tariff compared favorably with the effective cost of MSEDCL&#8217;s procurement and was competitive and reflective of prevailing market conditions.
It also accepted AEML D&#8217;s explanation regarding Powerpulse&#8217;s use of alternative thermal sources. It observed that Article 4.11 of the draft power purchase agreement expressly permits the supplier to procure power from an alternate generation source while continuing to bear any additional transmission or incidental charges.
MERC held that this contractual provision provided reasonable assurance that the supplier would continue to meet its obligations under the agreement.
Concluding that the bidding process was transparent, competitive, and compliant with the statutory guidelines, and that the tariff was reasonable and in the overall interest of consumers, MERC adopted the weighted average levelized tariff of ₹6.38 (~$0.066)/kWh for the procurement of 750 MW of RTC renewable power for a period of 10 years from Powerpulse Trading Solutions.
It also directed AEML D to submit the executed power purchase agreement to the Commission.
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MERC Clears Tariff for Adani Electricity’s 750 MW Renewable Power Procurement

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					</table>The Maharashtra Electricity Regulatory Commission (<a href="https://www.merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has allowed <a href="https://www.adanielectricity.com/corporate/who-we-are#:~:text=It%20serves%20over%20three%20million,most%20efficient%20power%20distribution%20network." target="_blank" rel="noopener">Adani Electricity Mumbai-Distribution</a> to buy 250 MW of renewable energy on a round-the-clock basis from grid-connected projects through competitive bidding.
The approval comprises a greenshoe option to procure an additional 250 MW. The overall procurement can be complemented with other non-renewable energy sources.
The Commission also allowed a ten-year tenure for the power purchase agreement (PPA) instead of 25 years but rejected the distribution licensee’s petition on deviation related to the escalation factor.
It clarified that the power procured from the projects would be counted toward the renewable purchase obligation (RPO) compliance of Adani Electricity.
Background
On July 7, 2020, Adani Electricity filed a petition before the Commission seeking approval to procure 1,000 MW of power from grid-connected renewable energy projects, complemented with power from coal-based thermal power projects on an RTC basis.
The Commission accorded in-principle approval to procure 500 MW in the first phase.
It had considered the continuation of the 500 MW power supply from Adani Dahanu Thermal Power Station and directed the distribution licensee to procure an additional 500 MW.
In the same order, an alternative option of considering the tender of 1,000 MW with a greenshoe option (500 MW + 500 MW) was also suggested by the Commission.
Further, the Commission, in its order dated March 30, 2020, directed Adani Electricity to approach it at least six months before the expiry of its arrangement with Adani Dahanu thermal power station for either extension of the arrangement or power purchase from an alternative source after exploring all available options of procurement.
Later, Adani Electricity filed a petition before the Commission to procure 1,000 MW (500 MW + additional 500 MW under greenshoe option) power from grid-connected renewable projects, complemented with power from coal-based thermal power projects in India on an RTC basis for ten years.
Regarding the Commission&#8217;s query on the possibility of power procurement through SECI Tenders, Adani Electricity submitted that, although SECI was in the process of issuing tenders, it may take considerable time to finalize the same.
Since it had to meet its consumers&#8217; demand gradually from ~ 50 MW in FY23 to ~ 600 MW in FY27. Further, it was estimated that 18 to 24 months were required for a successful bidder to set up projects, and the tendering process needed to be initiated as early as possible.
Further, Adani Electricity added that procuring power through the SECI tender process would attract a trading margin of ₹0.07 (~$0.0008)/kWh, and the consumers would have to bear the impact of the trading margin for each unit purchased, which will amount to ₹3.07 (~$37.69 million) billion for ten years.
Commission&#8217;s analysis
The Commission directed Adani Electricity to strike a balance between future power requirements and currently issued bids for power procurement.
The Commission directed Adani Electricity to invite bids for 250 MW + 250 MW under the greenshoe option. This would be in addition to the 1,000 MW (500 MW + 500 MW under the greenshoe option) <a href="https://mercomindia.com/adani-discom-procure-1-gw-renewable-bundled-thermal/" target="_blank" rel="noopener">allowed</a> in the order dated November 1, 2022.
The Commission allowed the deviation regarding ten-year PPA tenure but rejected the deviation sought regarding the escalation factor.
The Commission relied on its earlier order to allow the deviation.
Commission had earlier noted that a 25-year PPA would help the recovery of the project cost over a longer period and lower tariffs.
However, the distribution licensee had envisaged the supply of non-renewable power from existing plants, and such depreciated plants would have a lower tariff to offer.
Hence, the objective of the longer period PPA might not be defeated even if a comparatively lower term PPA was considered.
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Maharashtra Regulator Allows Procurement of 500 MW of Round-the-Clock Power

In a bid to transition Mumbai towards green energy, <a href="https://www.adanielectricity.com/About" target="_blank" rel="noopener">Adani Electricity Mumbai Limited (AEML)</a>, the city’s largest electricity distributor, is launching a program to give consumers the flexibility to set their targets for renewable energy.
As part of the company’s Mumbai Green Energy Initiative, consumers subscribing to AEML will have the option to buy clean power under the current Maharashtra Electricity Regulatory Commission’s program of providing 100% renewables, by paying an additional ₹0.66 (~$0.009)/kWh.
AEML will be able to provide renewable energy Certificates to consumers as it will receive a 700 MW supply from hybrid solar and wind generation in Rajasthan towards the end of 2022-23. It will also add 1,000 MW of power with a substantial component of green energy for which MERC approval has been sought.
AEML’s initiative is expected to help its consumers with a global footprint and with a commitment to sourcing 25% or higher of their total energy consumption from renewable sources.
Through a combination of direct renewable energy supply and indirect offsets, AEML hopes to enable its corporate customers to meet their sustainability commitments.
Kandarp Patel, Chief Executive Officer, and Managing Director, AEML, said, “As the company significantly scales up its renewable energy projects, AEML will empower its customers to choose the source of their energy, making green electrons accessible to everyone and enabling the green energy transition. We can guarantee 100% green energy supply and certificates in Mumbai, without any modifications or disruptions. We will create customized renewable energy solutions for all customers to take full advantage of the renewable energy opportunities and achieve their sustainability goals.”
Aligned to India’s pact under the Paris Agreement to achieve renewable energy targets, AEML is set to source over 30% of its energy requirement through renewable sources by 2023 and further increase the share to 50% after receiving a nod from the MERC to add 1,000 MW of round-the-clock power with more than 51% component from renewable sources.
A voluntary program, the Mumbai Green Energy Initiative is targeted towards both existing and prospective customers. AEML will issue monthly certificates to customers opting for the program stating the percentage  of power requirement that has been sourced through renewable energy.
The MERC had, in an <a href="https://mercomindia.com/consumers-100-renewables-green-power-tariff/" target="_blank" rel="noopener">order</a> issued in March this year, allowed a ‘Green Power Tariff’ of ₹0.66 (~$0.009)/kWh to be levied on consumers opting for 100% green energy. The Commission noted that all consumers, including extra high voltage, high voltage, and low voltage categories, will be eligible to opt for 100% renewable power on the payment of the Green Power Tariff.
Tata Power Company-Distribution (TPC-D) had filed a petition seeking approval for the ‘Green Power Tariff’ for consumers meeting their requirements through 100% renewable energy.
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Adani Electricity Gives Mumbai Consumers Guilty of Dirty Coal Option to Switch to Green Energy

Adani Electricity Mumbai Limited has issued a Request for Selection (RfS) for the purchase of power from 350 MW of grid-connected solar projects on a long-term basis through a competitive bidding process. This is to fulfil the Renewable Purchase Obligation (RPO) of Adani Electricity Mumbai.
The company also intends to procure additional 350 MW of power under Greenshoe option under the Domestic Content Requirement (DCR) category.
A bidder can submit multiple bids for a maximum cumulative capacity of 700 MW, including the capacity offered under the Greenshoe option. However, selection of the 350 MW capacity under Greenshoe will be at Adani Electricity’s discretion.
The company will enter into power purchase agreement (PPA) with the selected bidders for a period of 25 years from the commercial operation date of the project.
To be eligible to bid for the project, the net-worth of the bidder should be equal to or greater than ₹ 10.7 million (~$ 0.15 million) per MW of the quoted capacity for the financial year ending 2017-18.
It will be mandatory for all the projects to meet the domestic content requirement. The RfS says-
<blockquote>In case of crystalline silicon technology, all process steps and quality control measures involved in the manufacture of the solar cells and modules from P-type (or N-type) wafers until the final assembly of the solar cells into modules should be performed at the works of PV manufacturers in India. The requisite P-type (or N-type) wafers and other raw materials can be imported.</blockquote>
Adani Electricity Mumbai Limited is an integrated utility engaged in power transmission across Mumbai and Maharashtra and distribution of electricity to the suburbs of Mumbai. The company distributes power to over 3 million consumers in its licensed area of supply. It wheeled 11,154 million units in the financial year ending March 31, 2018 and met maximum system demand of 1,954 MW in the current financial year-to-date.
This <a href="https://mercomindia.com/torrent-power-issues-rfs-300-mw-solar-gujarat/">month</a>, Torrent Power Limited (<a href="https://www.torrentpower.com/index.php/site/indexs" target="_blank" rel="noopener">TPL</a>), an electricity distribution licensee operating in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat, also issued RfS for the procurement of up to 300 MW of power from grid-connected solar photovoltaic power projects in Gujarat to fulfil its renewable purchase obligation.
<a href="https://mercomindia.com/adani-green-acquires-51-percent-kodangal-solar/" target="_blank" rel="noopener">Recently</a>, <a href="https://www.adanigreenenergy.com/" target="_blank" rel="noopener">Adani Green Energy</a> announced the acquisition of a 51 percent equity share capital in Kodangal Solar Parks Private Limited (KSPPL), comprising a 20 MW solar project which was incorporated back in August 2015.
<a href="https://mercomindia.com/madhya-pradesh-electricity-commission-adani-payment/">Moreover</a>, the Madhya Pradesh Electricity Regulatory Commission (<a href="http://www.mperc.nic.in/index.htm" target="_blank" rel="noopener">MPERC</a>) recently dismissed a review petition filed by Madhya Pradesh Power Management Company Limited (<a href="http://www.mppmcl.com/MPPMCLIABS/faces/Menu/Home?_afrLoop=5470552075116821&amp;X-Forwarded-For=49.206.9.59&amp;_afrWindowMode=0&amp;_adf.ctrl-state=62c9jl14a_4" target="_blank" rel="noopener">MPPMCL</a>) seeking relief against an order issued by the commission for a case between MPPMCL and Adani Green Energy. MPPMCL is the holding company for all the DISCOMs of Madhya Pradesh.

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