Petition of MSEDCL seeking approval for procurement of storage capacity from 2000 MW/ 4000 MWh standalone BESS – EQ
Summary:
### **Key Prayers by MSEDCL:**
1. Approve the initiation of competitive bidding for **2000 MW/4000 MWh BESS**.
2. Admit the petition under **MERC (Multi-Year Tariff) Regulations, 2024**.
3. Approve the **draft RfS document**.
### **Background & Justification:**
– **Resource Adequacy (RA) Plan:** MSEDCL’s RA study projects significant growth in renewable energy (especially solar), leading to **daytime surplus power** (estimated **76,440 MU** over FY 2025–30).
– **Market Challenges:** Selling surplus solar power in the **Day-Ahead Market (DAM)** and **Real-Time Market (RTM)** is increasingly difficult, with RTM prices often dropping to near-zero during solar hours.
– **Storage Obligation:** As per **MERC RPO (Amendment) Regulations, 2024**, distribution licensees must meet **Energy Storage Obligation (ESO)** starting at **1.5% in FY 2024-25** and increasing to **4% by FY 2029-30**.
– **Grid Stability:** BESS will store surplus solar energy during the day and discharge it during **peak/non-solar hours**, improving grid stability, reducing reliance on thermal power, and helping meet RPO targets.
### **Key Features of Proposed BESS Procurement:**
– **Capacity:** 2000 MW / 4000 MWh (1 cycle).
– **Project Model:** Build, Own, and Operate (BOO).
– **Location:** Near MSEDCL/MSETCL substations in Maharashtra.
– **Connectivity:** 33 kV / EHV level.
– **Viability Gap Funding (VGF):** Up to **₹18 lakh per MWh** from the Ministry of Power (MoP) via the Power System Development Fund (PSDF).
– **Contract Term:** 15 years (revised from 12 years via addendum).
– **Commissioning Timeline:** 18 months from BESPA effective date.
– **Minimum Availability:** 95% annually.
– **Round-Trip Efficiency:** Minimum 85% monthly.
### **Addenda to RfS (Filed via IA No. 135 of 2025):**
MSEDCL submitted 8 addenda (dated 14 Aug 2025 to 25 Oct 2025) revising:
– Project configuration (discharge cycle revised from 2 to 1).
– Bid submission deadlines.
– Contract term extension (12 to 15 years).
– Degradation schedule for dispatchable capacity.
– Billing methodology for co-located solar projects.
### **MERC’s Analysis & Ruling on Key Issues:**
#### **1. Regulatory Mandate for Energy Storage Procurement:**
– **Ruling:** Approved.
– **Reasoning:** The **MERC RPO (Amendment) Regulations, 2024** mandate an **Energy Storage Obligation (ESO)**. Procurement of BESS services is necessary for MSEDCL to comply with ESO targets.
#### **2. Assessment of Storage Quantum:**
– **Ruling:** Approved.
– **Reasoning:** MSEDCL’s demand projections (based on ST-DRAP & MT-DRAP) justify the need for storage. The **total planned BESS capacity (2750 MW by FY 2030-31)** includes:
– Already approved: **750 MW** (Case No. 173 of 2024).
– Proposed: **2000 MW**.
– The procurement aligns with the RA plan to manage solar surplus and peak demand.
#### **3. Compliance of RfS with MoP Guidelines:**
– **Ruling:** Approved.
– **Reasoning:** Although no central model bidding document exists for BESS under Section 63, the Commission independently evaluated MSEDCL’s RfS and found it **consistent with MoP guidelines** and appropriate for procurement.
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