Order 129 of 2018-14062018,Petition for seeking approval on adaption of Tariff for long term procurement of 500 MW Wind Power under Section 63 of the Electricity Act 2003 for meeting the NonSolar Renewable Purchase Obligations

1. Order in Case No 129 of 2018 Page 1
Before the
MAHARASHTRA ELECTRICITY REGULATORY COMMISSION
World Trade Centre, Centre No.1, 13th Floor, Cuffe Parade, Mumbai 400005
Tel. 022 22163964/65/69 Fax 22163976
Email: mercindia@merc.gov.in
Website: www.mercindia.org.in / www. merc.gov.in
Case No. 129 of 2018
In the matter of
Petition for seeking approval on adaption of Tariff for long term procurement of 500
MW Wind Power under Section 63 of the Electricity Act 2003 for meeting the Non-
Solar Renewable Purchase Obligations
Coram
Shri. Anand B. Kulkarni, Chairperson
Shri. Mukesh Khullar, Member
Maharashtra State Electricity Distribution Company Limited (MSEDCL).......... Petitioner
M/s Torrent Power Limited …..… Impleded Party
Appearance
For MSEDCL : Shri. Satish Chavan (Rep.)
For M/s Torrent Power Limited : None
For Consumer Representative : None
ORDER
Date: 14 June, 2018
1. Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) Plot No G-9, 5th
Floor,
Prakashgad, Station Road, Bandra (East), Mumbai - 400 051, has filed a Petition on 4
June,2018 seeking approval on adaption of Tariff for long term procurement of 500
MW Wind Power under Section 63 of the Electricity Act, 2003(EA, 2003) for
meeting the Non- Solar Renewable Purchase Obligations.
2. MSEDCL’s prayers are as follows:
(a) To admit the Petition as per the provisions under Section 63 of the Electricity Act
(EA), 2003.

2. Order in Case No 129 of 2018 Page 2
(b) To accord approval for adoption of tariff as discovered in the e-reverse auction
conducted on 06.03.2018 and the same to be made eligible for meeting the Non-
solar RPO requirement of MSEDCL.
(c) To accord approval for signing of Power Purchase Agreement with the last
selected bidder (i. e. M/s Torrent Power Limited) for its full offered capacity of
146 MW.
(d) To consider the submission made by the Petitioner and consider the same
positively while deciding the Petition as well as for further actions;
(e) To pass any other order/relief as the Hon’ble Commission may deem fit and
appropriate under the circumstances of the case and in the interest of justice;
(f) To condone any error/omission and to give opportunity to rectify the same;
(g) To permit the Petitioner to make further submissions, addition and alteration to
this Petition as may be necessary from time to time.
3. MSEDCL in its Petition has stated as follows:
Procurement of long term 500 MW Wind power through competitive bidding:-
a) MSEDCL planned to procure 500 MW Wind Power on long term basis from the
existing as well as proposed Wind Power Projects through competitive bidding
process to meet its RPO requirement.
b) The Ministry of Power (MoP), vide its Notification dated 8 December,2017, has
issued Guidelines under Section 63 of the Electricity Act (EA),2003 for long
term procurement of power through Tariff- based Competitive Bidding from
grid-connected Wind Power Projects.
c) The Commission in its order dated 6 December, 2017 in Case No. 157 of 2017;
in the matter of seeking approval of Long/Medium/Short term procurement of
Renewable Energy through Competitive Bidding has ruled that MSEDCL shall
come before the Commission through specific Petition prior to the bidding
process only if MSEDCL requires any deviation with respect to the bidding
documents.
d) Also, as per the provision mentioned in MoP guidelines at clause no. 5.1 (b),
procurer shall inform the initiation of bidding process to the Commission.
MSEDCL has submitted its Petition on 20 December, 2017 in Case No.192 of

3. Order in Case No 129 of 2018 Page 3
2017 for approval of deviation in standard bidding document for long term
procurement of 500 MW Wind power to meet non-Solar RPO target.
e) MSEDCL initiated the bidding process on 21 December, 2017 by publishing the
RfS and PPA on TCIL portal. The bidding documents i.e. the RfS was prepared
in line with the MoP guidelines dated 8 December,2017 except for minimum
bid capacity of intra-state already commissioned wind generators. The clauses in
line with MoP guidelines were incorporated in the PPA as well.
f) The hearing in Case No. 192 of 2017 was held on 16 January, 2018 before the
Commission. The Commission was apprised with status of the tender process.
g) The Pre-bid meeting was conducted on 8 January, 2018 wherein queries of the
prospective bidders were discussed. Considering the queries raised by the
bidders in pre-bid meeting and possibility of delay in passing order by the
Commission, MSEDCL decided to go with standard MoP guidelines and carry
out tender process without deviating MoP guidelines. Thereafter, the RfS and
PPA were revised and prepared without any deviation from MoP guidelines
dated 8 December,2017
h) The last date of bid submission was 22 February, 2018. Seven (7) bidders had
submitted their bids. The Technical bid opening was conducted on 22 February,
2018 at 15.00 hrs. Thereafter the Technical Bids were evaluated and out of the 7
(seven) bidders, 6 (six) emerged as technically and financially qualified bidders
and 1 (one) bidder was disqualified for not meeting the minimum bid capacity
as specified in the tender document.
i) Subsequently the technically qualified bidders were informed about their
qualification for the next stage. Also, training was organized on 5 March, 2018
for the qualified bidders for using the TCIL portal for participating in the
reverse auction. The Financial Bids of the qualified bidders were opened on 6
March, 2018.
j) The e-reverse auction started from 14.00 Hrs on 6 March ,2018 in which all the
6 qualified bidders had participated and it was successfully completed the same
day.
k) The final tariff discovered from the e-reverse auction conducted on 6 March,
2018 is as presented below:

4. Order in Case No 129 of 2018 Page 4
S.
No.
Name of the Bidder Capacity
(MW)
IPO
Rate
Rs/kWh
E-RA
result
Rs/kWh
Bucket
Filled
Capacity in
MW
Intra/
Inter
1
Adani Green Energy
(MP) Limited
100 2.88 2.85 75
Inter State
Project
2
KCT Renewable
Energy Private
Limited
100 2.96 2.85 75
Intra State
Project
3 Inox Wind Limited 50 2.99 2.86 50
Inter State
Project
4
Mytrah Energy
(India) Private
Limited
200 2.97 2.86 100
Intra State
Project
5
Hero Wind Energy
Private Limited
100.8 2.96 2.86 75.6
Intra State
Project
6
Torrent Power
Limited
271 2.98 2.87 146*
Intra State
Project
Total 821.8 - - 521.6
* 124.6 MW from the bucket filled and 21.4 MW from the out of bucket.
l) The Commission in its order dated 6 December, 2017 for Case No. 157 of 2017
directed that…
In case the standard bidding document is used by MSEDCL then a specific
petition shall be filed by MSEDCL after bidding process for adoption of tariff as
is mandated under Sec-63 of EA 2003. The said Petition shall cover the
following, for approval of the Commission. (i) quantum of power , (ii) Period of
power flow, Tariff rate of the RE power to be procured, under Tariff Based
Competitive Bidding Process for Short term/ Medium term /Long term basis for
adoption under Section 63 of the Act.
MSEDCL has approached the Commission for adoption of tariff offered under
Section 63 of the EA, 2003 after completion of bidding process.
m) MSEDCL submits to the Commission to approve the tariff as discovered in the
e-reverse auction for procurement of wind power. Also, the last successful
bidder (i.e. M/s Torrent Power Limited) has offered capacity of 146 MW,
whereas the allotted capacity in bucket filling of 500 MW as per the e-reverse
auction is 124.6 MW. It is requested to the Commission to allow the Petitioner

5. Order in Case No 129 of 2018 Page 5
to execute the Power Purchase Agreement for a capacity of 146 MW with M/s
Torrent Power Limited.
n) MSEDCL requests the Commission to approve the above tariffs discovered in
the e-reverse auction for further signing of PPA with the Successful Bidders.
The agreement will for a period of 25 years from the Commercial Operation
Date in case of proposed/new wind power project or for a period of 25 years
from the date of execution of PPA in case of existing wind power projects.
4. M/s Torrent Power Limited in its written submission received on 9 June, 2018 has
stated that it has no objection in accepting the offered project capacity of 146 MW
pursuant to the E-Reverse Auction held under the Rfs No.MSEDCL/Competitive/500
Wind dated 21 December, 2017 at the tariff of Rs.2.87 per unit.
5. Adani Green Energy (MP) Limited in its written submission received on 9 June,2018
has stated as follows:
a) Adani Green Energy (MP) Limited is selected as successful bidder and allocated
75 MW Wind Power Project.MSEDCL has filed the Petition in Case No 129 of
2018 before the Commission for adoption of tariff. One of the prayer in the said
Petition to accord approval of signing of PPA with last selected bidder (i.e. M/s
Torrent Power Limited who has submitted bid for 271 MW) for additional
capacity of 146 MW at the tariff of Rs 2.87 per unit as against 124.4 MW own
under the bid.
b) Adani Green Energy (MP) Limited who is one of the successful bidder is ready
and willing to execute the Wind Power Project for additional capacity at the bid
out tariff/L1 tariff i.e. at Rs.2.85 per unit, which is lower than the one offered to
M/s Torrent Power Ltd. for additional capacity of 146 MW. Incremental capacity
if any should be offered to lower price bidder who is willing to take additional
capacity at L1 tariff, instead of allocation to last bidder that too at higher rate.
Adani Green Energy (MP) Limited have capacity to execute the additional Wind
power project as may be offered to it in the currently provided in the tender.
6. The proceedings of the hearing held on 9 June, 2018 are summarized as follows:
i. The representative of MSEDCL has stated that, MSEDCL has floated the tenders
as per MoP standard bidding guidelines and carried out tender process without
deviating MoP guidelines. Out of the 7 bidders, 6 were technically and financially
qualified and 1 bidder was disqualified for not meeting the minimum bid capacity
as specified in the tender document. The final tariff discovered from the e-reverse
auction conducted on 6 March, 2018 are between Rs.2.85 to Rs.2.87 per unit. The
last successful bidder M/s Torrent Power Limited has offered capacity of 146
MW, whereas the allotted capacity in bucket filling of 500 MW as per the e-

6. Order in Case No 129 of 2018 Page 6
reverse auction is 124.6 MW. MSEDCL requests the Commission to approve the
discovered tariff and to allow it to execute the Power Purchase Agreement for a
capacity of 146 MW with M/s Torrent Power Limited. Energy purchased through
the tendering process shall be considered eligible for meeting the Non-solar RPO
requirement of MSEDCL
ii. The representative of Adani Green Energy (MP) Limited has stated that it has
submitted its reply on 9 June, 2018 and reiterated its submission and requested the
Commission to consider its request for willing to execute the Wind Power Project
for additional capacity at the bid out tariff i.e. at Rs.2.85 per unit, which is lower
than Rs.2.87 per unit offered by M/s Torrent Power Ltd.
7. Adani Green Energy (MP) Limited in its subsequent submission dated 13 June,2018
has stated that it is withdrawing its letter dated 9 June,2018.
8. MSEDCL in its subsequent submission dated 13 June,2018, in reply to the issue
raised by Adani Green Energy (MP) Limited vide letter dated 9 June,2018 has stated
as follows:
a) M/s Adani Green Energy (MP) Limited, vide letter dated 9 June, 2018, has
submitted their reply to the Commission and stated that, they are ready to execute
the wind power project for additional capacity at the bid out tariff i.e L1 Tariff i.e
@Rs.2.85 p.u. which is lower than the one offered to M/s. Torrent Power Ltd
additional capacity.
b) On 10 April, 2018, SECI approached MSEDCL for consent for purchase of Wind
power from the projects under 2000 MW Wind ISTS connected scheme (Tranche
IV) at discovered tariff of Rs. 2.52 per kWh plus SECI trading margin of Rs.0.07
per kWh. Accordingly, MSEDCL has given consent on 7 May, 2018 for
procurement of 500 MW and filed petition with the Commission for approval and
adoption of tariff on 5 June, 2018.
c) In view of above developments, MSEDCL has decided to restrict it bucket to 500
MW after completion of reverse auction process in the said tender.
d) Accordingly, MSEDCL requests the Commission to approve adoption of tariff for
long term procurement of 500 MW wind power under Section 63 of the Electricity
Act 2003 for meeting the Non-Solar Renewable Purchase Obligations as under:
S.
No.
Name of the Bidder Capacity
(MW)
IPO
Rate
Rs/kWh
E-RA
result
Rs/kWh
Bucket
Filled
Capacity in
MW
Intra/
Inter
1 Adani Green Energy 100 2.88 2.85 75 Inter State

7. Order in Case No 129 of 2018 Page 7
(MP) Limited Project
2
KCT Renewable
Energy Private
Limited
100 2.96 2.85 75
Intra State
Project
3 Inox Wind Limited 50 2.99 2.86 50
Inter State
Project
4
Mytrah Energy
(India) Private
Limited
200 2.97 2.86 100
Intra State
Project
5
Hero Wind Energy
Private Limited
100.8 2.96 2.86 75.6
Intra State
Project
6
Torrent Power
Limited
271 2.98 2.87 124.4
Intra State
Project
Total 821.8 - - 500
In view of the above the MSEDCL prays to the Commission:
i) To admit the Petition as per the provisions under Section 63 of the Electricity Act
(EA), 2003.
ii) To accord approval for adoption of tariff as discovered in the e-reverse auction
conducted on 6 March, 2018 and the same to be made eligible for meeting the
Non-solar RPO requirement of MSEDCL.
iii) To accord approval for signing of Power Purchase Agreement with the last
selected bidder (i. e. M/s Torrent Power Limited) for its bucket filling capacity of
124.4 MW only instead of full offered capacity of 146 MW.
Commission’s Analysis and Rulings
9. MSEDCL under the present Petition has sought approval for i) adoption of tariff
as discovered in the e-reverse auction conducted on 6 March, 2018 and the same
to be made eligible for meeting the Non-solar RPO requirement of MSEDCL ii)
signing of Power Purchase Agreement with the last selected bidder M/s Torrent
Power Limited for its full offered capacity of 146 MW. However MSEDCL in its
subsequent submission dated 13 June,2018 has requested the Commission to
accord approval for signing of Power Purchase Agreement with the last selected
bidder M/s Torrent Power Limited for its bucket filling capacity of 124.4 MW
only instead of full offered capacity of 146 MW.

8. Order in Case No 129 of 2018 Page 8
10. The Commission in its Order dated 6 December, 2017 in Case No. 157 of 2017
had permitted MSEDCL to procure Wind, Solar and Bagasse based cogeneration
RE power on Short Term, Medium term and Long term basis at the rate
discovered through Tariff based Competitive Bidding (e-reverse auction).
Further, the Commission in that Order dated 6 December, 2017 had also ruled
that in case the standard bidding document is used by MSEDCL then a specific
petition shall be filed by MSEDCL after bidding process for adoption of tariff as
is mandated under Sec-63 of EA 2003. The said Petition shall cover the following,
for approval of the Commission. (i) quantum of power , (ii) Period of power flow,
Tariff rate of the RE power to be procured, under Tariff Based Competitive
Bidding Process for Short term/ Medium term /Long term basis for adoption
under Section 63 of the Act.
11. The Commission notes that MSEDCL has prepared Rfs document without any
deviation in line with the MoP Guidelines dated 8 December,2017 for Tariff
Based Competitive Bidding Process for Procurement of Power from grid
connected Wind power Projects and floated the tender. The final tariff
discovered from the e-reverse auction conducted on 6 March, 2018 is between Rs
2.85 to Rs 2.87 per unit. The last successful bidder M/s Torrent Power Limited
has offered capacity of 146 MW, whereas the allotted capacity in bucket filling of
500 MW as per the e-reverse auction is 124.6 MW i.e. 21.40 MW capacity is out
of the bucket. However, the Commission notes that MSEDCL in its submission
dated 13 June, 2018 has stated that it has decided to restrict bucket filling
capacity of M/s Torrent Power Limited for its of 124.4 MW only instead of full
offered capacity of 146 MW.
12. The Commission notes that the M/s Adani Green Energy (MP) Limited has also
withdrawn vide its letter dated 13 June, 2018 about its contention made in its
submission dated 9 June, 2018 and during the proceeding of the hearing held on
9 June, 2018.
13. In view of foregoing, in line with the mandate u/s 63 of the EA, 2003 the
following procurement and rates are approved by the Commission as proposed
by MSEDCL. Also, the Commission accords approval to consider the proposed
Wind Power generation to count towards fulfilment of its non-Solar RPO for the
respective periods.

9. Order in Case No 129 of 2018 Page 9
Sr.
No.
Name of the
supplier
Quantum of
procurement
approved
(MW)
PPA Period Time
period of
supply
Rate
(Rs./kWh)
1
Adani Green
Energy (MP)
Limited
75
25 Years
from the date
of COD for
new Wind
projects
or
25 years from
date of
signing of
EPA for
existing
Wind
Projects
As per
availability
2.85
2
KCT
Renewable
Energy Private
Limited
75 2.85
3
Inox Wind
Limited
50 2.86
4
Mytrah Energy
(India) Private
Limited
100 2.86
5
Hero Wind
Energy Private
Limited
75.6 2.86
6
Torrent Power
Limited
124.5 2.87
Total 500 -
The Petition of Maharashtra State Electricity Distribution Co. Ltd. in Case No.129 of 2018
stands disposed of accordingly.
Sd/ Sd/
(Mukesh Khullar) (Anand B. Kulkarni)
Member Chairperson