MERC approves key proposals regarding bagasse-based cogeneration power projects in Maharashtra

The MERC has approved various proposals made by MSEDCL. Now, long-term bagasse-based cogeneration power projects will be won by developers through competitive bidding followed by a reverse e-auction process. The MERC has also approved the setting of the upper tariff ceiling of Rs 4 per kWh for the procurement of power from such projects. Apart from these, the MERC has increased the project commissioning period from 13 to 18 months and has extended the power purchase agreement duration from 13 to 20 years. Further, according to the ruling, the power purchased from bagasse-based cogeneration projects in this period will be deducted from the discom’s non-solar RPOs.