Mumbai, Maharashtra State Electricity Distribution Company Ltd (MSEDCL)'s 6,600 MW tender for long-term power procurement is under the assurance of the Maharashtra Electricity Regulatory Commission (MERC).
Responding to a request filed by state power company MSEDCL seeking approval for a deviation in the standard tender documents, the MERC questioned the state power company why approval was not sought before initiating the bidding process, according to the regulator's order of June 25. .
The state power regulator has directed MSEDCL to demonstrate in quantifiable terms how the deviations proposed in the tender documents are in the benefit of consumers.
In March, MSEDCL floated a tender to procure 1,600 MW of thermal power and 5,000 MW of solar power in Maharashtra. This was just before the model code of conduct for the Lok Sabha elections came into force.
The power procurement was meant to meet the demand by 2033-34, i.e. 10 years from now.
In its order, the MERC asked MSEDCL to clarify that since the proposed power procurement being carried out to meet the 2033-34 demand will begin to be operationalized in the next 2-4 years, such advance procurement would create stagnant capacity.
The MERC also wanted to know whether the Maharashtra state power utility has reserved enough power to meet the projected demand by 2033-34, the order said.
The MERC asked the MSEDCL to explain the reasons for considering combined procurement of solar and thermal energy from a single entity. The Commission wants to know whether all future thermal energy purchases will follow the same principle.
According to sources, MSEDCL is trying to conclude the tender submission in July, before the code of conduct is issued for the state elections, scheduled for October 2024.
According to an industry source, projects of this scale would require an investment of around Rs 40,000 crore. Any interested party who wants to participate in the tender will have to obtain offers from equipment suppliers, commit financing and also manage other essential elements of the project, such as land, water and transmission.
The tender does not give enough time for interested parties to sort out these basic requirements, they said, adding that this may lead to restricted participation, which is not in the interest of the consumer and could result in higher power procurement costs and tariffs.
Giving enough time for broader participation in the tender will always be in the interest of consumers as the need for energy will begin in 2033, the source added.
MSEDCL has been given 7 days to submit the submission of the queries raised by the MERC. The next hearing date is July 2, 2024.
Responding to a request filed by state power company MSEDCL seeking approval for a deviation in the standard tender documents, the MERC questioned the state power company why approval was not sought before initiating the bidding process, according to the regulator's order of June 25. .
The state power regulator has directed MSEDCL to demonstrate in quantifiable terms how the deviations proposed in the tender documents are in the benefit of consumers.
In March, MSEDCL floated a tender to procure 1,600 MW of thermal power and 5,000 MW of solar power in Maharashtra. This was just before the model code of conduct for the Lok Sabha elections came into force.
The power procurement was meant to meet the demand by 2033-34, i.e. 10 years from now.
In its order, the MERC asked MSEDCL to clarify that since the proposed power procurement being carried out to meet the 2033-34 demand will begin to be operationalized in the next 2-4 years, such advance procurement would create stagnant capacity.
The MERC also wanted to know whether the Maharashtra state power utility has reserved enough power to meet the projected demand by 2033-34, the order said.
The MERC asked the MSEDCL to explain the reasons for considering combined procurement of solar and thermal energy from a single entity. The Commission wants to know whether all future thermal energy purchases will follow the same principle.
According to sources, MSEDCL is trying to conclude the tender submission in July, before the code of conduct is issued for the state elections, scheduled for October 2024.
According to an industry source, projects of this scale would require an investment of around Rs 40,000 crore. Any interested party who wants to participate in the tender will have to obtain offers from equipment suppliers, commit financing and also manage other essential elements of the project, such as land, water and transmission.
The tender does not give enough time for interested parties to sort out these basic requirements, they said, adding that this may lead to restricted participation, which is not in the interest of the consumer and could result in higher power procurement costs and tariffs.
Giving enough time for broader participation in the tender will always be in the interest of consumers as the need for energy will begin in 2033, the source added.
MSEDCL has been given 7 days to submit the submission of the queries raised by the MERC. The next hearing date is July 2, 2024.
