MERC Approves BEST's Procurement of 220 MW Solar with 110 MW/440 MWh BESS from SECI
The Maharashtra Electricity Regulatory Commission has sanctioned the acquisition of 220 megawatts of solar electricity paired with a 110 megawatt and 440 megawatt-hour battery storage facility by the Brihanmumbai Electric Support and Transport Undertaking. The energy will be sourced through the Solar Energy Corporation of India under the Interstate Transmission System-connected Tranche-XX tender.
Approval was also granted for a 25-year Power Sale Agreement featuring tariffs ranging from 2.86 to 2.87 rupees per kilowatt-hour, alongside a trading fee of 0.07 rupees per kilowatt-hour for the intermediary. This volume will count toward the utility's Renewable Purchase Obligations and Energy Storage Obligations, following a competitive bidding process managed via a 2,000 megawatt solar and 1,000 megawatt-hour storage tender issued in June 2025 and auctioned in October 2025.
The delivery agreement stems from an initial request for 200 megawatts of solar and 100 megawatts of storage, which was later increased by the intermediary to 220 megawatts of solar and 110 megawatts of storage tied to the Maharashtra State Transmission Utility network. Utilizing assets connected to the state transmission grid avoids interstate transmission fees and losses, creating an economical supply option, while a reduction in the goods and services tax on solar cells and modules from 12 percent to 5 percent could decrease tariffs by 10 to 12 paise per unit pending regulatory consent.
The acquisition aids the utility in meeting mandates under the Electricity Act of 2003 and local tariff regulations, addressing targets that scale energy storage obligations from 1.5 percent in the 2024-2025 financial year to 4 percent by the 2029-2030 financial year. Regulators noted that the agreement matches firm and dispatchable renewable energy capacity outlined in the utility's resource adequacy strategy.
The Central Electricity Regulatory Commission previously adopted the pricing structure under Section 63 of the Electricity Act, leaving the state commission to evaluate the prudence of the transaction. The trading fee approved for the intermediary remains subject to conditions regarding financial backing arrangements stipulated by central regulations.
Supplies will be delivered by LC Infra Projects for 50 megawatts at 2.86 rupees per kilowatt-hour, GH2 Solar for 50 megawatts at 2.87 rupees per kilowatt-hour, and Navayuga Green Energy for 120 megawatts at 2.87 rupees per kilowatt-hour, with deliveries starting two years after the effective date of the power purchase agreements. State transmission and load dispatch entities have been instructed to handle grid connection, access, and scheduling requests, as the state commission develops a dedicated regulatory framework for battery energy storage operations.
Originally reported by Energetica India Magazine on Aug 6, 2026.
