The Maharashtra Electricity Regulatory Commission (MERC) has given a nod to the implementation of tariffs selected via a competitive bidding process conducted by MSEB Solar Agro Power Ltd (MSAPL), the nodal agency for MSKVY 2.0. to procure 2,269 MW of distributed solar power under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0.
The order allows Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to carry out long-term power purchase agreements (PPA) with successful bidders for decentralized solar projects across the state.
The approved tariff ranges from Rs 2.24/kWh to Rs 2.90/kWh for projects spread across 257 substations. Although MSEDCL reported a discovered tariff range of Rs 2.65–2.90/kWh (with a weighted average of Rs 2.825/kWh), MERC adopted a broader range after noting additional lower bids of Rs 2.24/kWh and Rs 2.55/kWh.
The company sought for the approval from the commission under section 63 of the Electricity Act, 2003.
The procurement will advance feeder-level solarisation and deliver reliable daytime electricity to agricultural consumers while supporting the utility to meet its Renewable Purchase Obligation (RPO) targets.
As per the order, the competitive bidding process took place in two rounds following the issue of Request for Selection (RfS) on August 9, 2025. The bidding included bids for 257 substations, with tariffs selected via direct bids and e-reverse auctions. Excluding Central Financial Assistance (CFA) benefits, the final weighted average tariff was Rs 2.825/kWh.
Additionally, MERC noted that the procurement supports the state’s aim of solarizing agricultural feeders by substituting costly thermal power with affordable solar energy. The commission also observed that the projects would enable MSEDCL to meet its growing Distributed Renewable Energy requirements under its RPO mandate up to FY 2029–30.
Furthermore, according to the commission, the current weighted average tariff of Rs 2.825/kWh is lower than the weighted average tariff of Rs 3.08/kWh approved in an earlier MSKVY 2.0 procurement. The Commission attributed the lower rates to excluding Domestic Content Requirement (DCR) modules and dropping the Central Financial Assistance (CFA) mandate, which reduced overall project costs without compromising transparent, competitive bidding.
Under the order, MSEDCL and all the successful bidders are required to carry out PPAs within 30 days and submit copies to the Commission and the solar power generated by these projects will qualify to meet MSEDCL's Distributed Renewable Energy RPO requirements.
