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MSEDCL does not want penalties for RE targets

Nagpur: MSEDCL submitted a petition to the Maharashtra Electricity Regulatory Commission (MERC) calling on the Commission not to impose penalties on it for failure to meet renewable energy goals by 2022-23. Despite repeated efforts by MSEDCL to procure power through renewable energy sources, the discom claimed that it did not receive bidders ‘ responses.

MSEDCL had a previous proposal from the Commission to increase the solar target to 13.5 percent from the existing 2.5 percent by 2024-25. The discom contended it was pretty stiff, and that it would not be able to achieve it despite best efforts. By 2024-25 total solar capacity of 12,500 MW would be required to reach the target against the current 4,200 MW capacity. It takes a lot of time to expand the capacity through the competitive bidding process and there were many other factors beyond its control, the discom had said.

The company had floated offers a few weeks ago to buy 1,350MW with a cap of Rs3.15 per unit but only got bids for 5MW. The discom elevated the maximum price for attracting producers. It raised the cap to Rs3.30 per unit, and the tender floated again. Through this petition, MSEDCL urged MERC to revise the ceiling tariff rate for 11 kV-level solar projects with capacity 2 to 10 MW. The hearing on this petition was expected to be held on February 18th but has been indefinitely postponed.

On the one hand, by introducing an unprecedented grid support charge (GSC), MSEDCL is unable to reach its solar goal and on the other, by opposing customers on the solar rooftop.

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