MERC establishes generic tariff of ₹3.05/kWh for DISCOMs to procure excess power in FY 2023-24
The Maharashtra Electricity Regulatory Commission (MERC) has unveiled a new generic tariff for the procurement of surplus power from rooftop solar projects by distribution companies (DISCOMs) in the upcoming financial year 2023-24. The tariff has been fixed at ₹3.05 (~$0.037) per kilowatt-hour (kWh).
Under this new tariff, DISCOMs will be required to purchase excess power generated from rooftop solar installations at the end of the financial year. This procurement will aid DISCOMs in meeting their solar renewable purchase obligation (RPO) targets.
Apart from rooftop solar projects, MERC has also introduced variable charges for biomass projects and non-fossil fuel-based cogeneration projects for the same financial year. Biomass projects will be subject to a variable charge of ₹5.93 ($0.072)/kWh, while non-fossil fuel-based cogeneration projects will face a variable charge of ₹4.57 ($0.055)/kWh. These charges will be effective starting April 1, 2023.
It’s important to note that the tariff determination by MERC pertains exclusively to rooftop solar projects. As for biomass and non-fossil fuel-based cogeneration projects, the tariffs will be applicable only to existing projects that have entered into energy procurement agreements (EPAs) based on previous generic tariffs established by the Commission.
The newly announced tariffs will be implemented from April 1, 2023, in accordance with the ruling made by the Commission