The Maharashtra Electricity Regulatory Commission (MERC) has provided guidelines concerning the setup of rooftop solar systems for sugar factories that possess energy/power purchase agreements (EPA/PPA) with the Maharashtra State Electricity Distribution Company (MSEDCL) for their bagasse-based cogeneration ventures. The directives, designed to enforce the MERC ruling dated July 21, 2022, specify that sugar mills holding EPA/PPA contracts with MSEDCL for bagasse-based cogeneration projects are required to submit requests to the Chief Engineer (renewable energy) for the installation of grid-connected rooftop solar setups.
The cogeneration meter and the solar generation meter will be installed at the same voltage level. The generating meters will be tested at MSEDCL testing labs prior to installation. Once the solar project is completed, the sugar factory is required to request synchronisation with the Chief Engineer (renewable energy). The sugar factory runs in two different modes: operating during the bagasse project’s generation and not operating during that same phase. Following commissioning, the solar project should be regarded as a hybrid project during the operational phase of the sugar factory and operated under a net metering or net-billing arrangement during the non-operational phase. An amendment agreement between the sugar factory and MSEDCL is required to integrate the capacity of the forthcoming solar project and its commercial terms into the current EPA/PPA.
Regarding the commercial terms for the operational phase, the current EPA already delineates the tariff for electricity produced from the bagasse-based cogeneration project. During the operational phase, the sugar factory will persistently receive bills based on the HT Industrial tariff.
In the non-operational phase, solely solar power generation is accessible. Depending on the solar project’s installed capacity, this facility must be managed through either a net-metering or net billing arrangement. The start date of the non-operational period will be determined based on certification furnished by the sugar factory. The grid support charges at a rate of Rs 0.72 per kWh, established in the multi-year tariff directive dated March 30, 2020, will be levied on the energy generated within the net-metering setup.
