Maharashtra Green Energy Open Access for Large Scale Energy Buyers
- TheGreen Bein
- Sep 16
- 6 min read
Updated: Oct 2
Collated by ChatGPT Edited by The Green Bein
Title: What Corporate Buyers Should Know Now: MERC’s Case 75 MYT Order, Bombay High Court Stay & Maharashtra Green Energy Open Access
Introduction
Maharashtra Green Energy Open Access procurement has always been governed by a mix of central rules (MNRE), MERC’s tariff & OA regulations, and MSEDCL’s implementation procedures. In June 2025, two major regulatory changes unsettled the status quo — but also created an opportunity window:
The MERC Order in Case No. 75 of 2025 (Review of the MYT Order 217 of 2024) — which seeks to correct, clarify or amend parts of the Multi-Year Tariff (MYT) Order that was issued in March 2025. Mahadiscom
The Bombay High Court stay on some of MSEDCL’s newly imposed restrictions on banked renewable energy (particularly limitations on when you can use banked solar energy) which had been introduced under the MYT revision. Mercomindia.com+2Saur Energy+2
Key Changes for Corporate & Industrial Open Access Buyers
Issue | What MERC / MSEDCL proposed or implemented | What the HC Stay Means / Current Position |
Banking & Usage of Surplus Renewable (Solar) Energy | The revised MYT framework had introduced rules limiting when banked solar energy could be used: often restricted to only “solar hours” or specific time-slots matching generation. This reduces flexibility and the value of solar surplus for OA / CPP / embedded generators. Mercomindia.com+2Saur Energy+2 | The Bombay High Court has interim orders (stay) that prevent MSEDCL from enforcing those restrictions; effectively, until litigation is resolved, the earlier regime (allowing banked renewable energy to be used any time except during peak hours) is in force. Mercomindia.com+2Saur Energy+2 |
Tariff Order MYT (Case No. 217 of 2024) and Review (Case 75 of 2025) | MSEDCL filed for a review of the March 2025 MYT order, alleging “errors and inconsistencies” in how certain costs (power purchase, small hydro, etc.) and energy charge rates are computed. Until the review is completed, MERC has extended old tariff rates. Mahadiscom | The above means ongoing uncertainty: what tariffs & charges will apply, especially for OA consumers who negotiate “Wheeling / charges / cross-subsidy / banking” under the existing PPA / open access regime. Contracts may get affected if based on projected charges. |
Open Access-Relevant Charges / Wheeling / Losses / CSS | As part of the MYT review, components like wheeling, losses, cross-subsidy surcharge (CSS), etc. are affected by how interconnection, source generation, and banking/timing rules are used in the cost models. The exact final levels might change. Mahadiscom | Until MERC issues its final reviewed order, OA buyers should assume conservative/higher charges and include renegotiation / contingency clauses in PPAs. Also, clarify in proposals what wheeling path (intra-state / inter-state), losses, and surcharges are assumed. |
Verbatim Extracts: What the Orders Say regarding Maharashtra Green Energy Open Access
Here are three passages from MERC / MSEDCL documents that are especially material for OA / green energy PPAs:
From MERC Order Case No. 75 of 2025 (Review of MYT Order 217 of 2024) — opening paragraphs explaining scope:
“The Commission passed its Multi Year Tariff Order … dated 28 March 2025 in Case No. 217 of 2024 for Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) approving truing up for FY 2022-23 and FY 2023-24, provisional truing up for FY 2024-25 and determination of Annual Revenue Requirement (ARR) and Tariff for fifth control period of FY 2025-26 to FY 2029-30.” Mahadiscom
“Subsequently, MSEDCL approached the Commission with an Application seeking the invocation of the Commission’s suo-motu powers in relation to determination, modification, revision, clarification and/or review of tariff. MSEDCL submitted … that the said Tariff Order has errors and inconsistencies which go to the root of the Tariff … [and] if implemented would cause grave prejudice …” Mahadiscom
From Mercom / news coverage of the Bombay HC Stay — what the court ordered in relation to banked energy usage:
“The Bombay High Court stayed the Maharashtra State Electricity Distribution Company’s (MSEDCL) restriction on the use of banked renewable energy for solar hours. It ruled that the older multi-year tariff framework, allowing renewable energy use anytime except during peak hours, would hold.” Mercomindia.com+1
What Buyers Should Do: Actionable Recommendations
In RfQs / PPA negotiations, include explicit terms about treatment of banked energy, especially usage timings (solar vs non-solar hours); ask for versioned quotes under both scenarios: (i) as per the revised MYT restrictions, and (ii) as per the stay / old rules.
Add “regulatory fallback” clauses: if MERC final order reimposes restrictions or changes charges (CSS, wheeling, losses), how will that affect the PPA price, or how will risks be shared.
Because the MYT review is ongoing, before finalizing PPAs, ensure that wheeling / loss / CSS / cross subsidy / wheeling path (intra vs interstate) assumptions are verified from the most recent MERC / MSEDCL orders & schedules.
Insist on landed cost sheets from suppliers, showing breakdowns under both possible regimes (pre-stay and post-stay). Also model both 7-yr and 12-yr terms under both regimes.
Keep records of date −- when the PPA is signed, when supply / banked energy begins, to align with which regulatory regime is in force. If possible, include audit / compliance check clauses on this.
Related FAQs for Maharashtra Green Energy Open Access Purchase
25 FAQs for Companies Sourcing Green Energy Open
Access in Maharashtra
1. What is Green Energy Open Access (GEOA) in Maharashtra?
It lets large power users buy renewable electricity directly from a generator through the grid, instead of only from the local DISCOM (MSEDCL).
2. Who can buy green power through open access?
Any commercial or industrial consumer with contracted demand ≥100 kW can apply. Example: a hotel chain with a 200 kW sanctioned load qualifies.
3. What approvals are needed?
You must apply to MERC/MSEDCL for open-access permission and sign a power-purchase agreement (PPA) with a renewable generator.
4. What types of energy count as “green”?
Solar, wind, small hydro, biomass, waste-to-energy, and hybrid projects registered under MNRE rules.
5. How long can the PPA term be?
Typical corporate deals are 7 years or 12 years.Scenario: An auto-parts factory signs a 12-year PPA to lock a low ₹/kWh rate.
6. What is the average landed cost for solar open access in Maharashtra?
Around ₹4.0–₹4.8 per kWh (all charges included) as of mid-2025, depending on location and contract length.
7. What are the main cost components?
Generator tariff, wheeling charge (~₹0.70/kWh), transmission charge (~₹0.20/kWh), cross-subsidy surcharge (CSS, ~₹0.80–1.20/kWh), and losses (~3–5%).
8. How does the Bombay High Court stay affect my cost?
For now you can bank solar energy and use it any time, improving value if you consume power at night.
9. What is banking of renewable energy?
Storing surplus power in the grid and drawing it later.Example: Your plant exports excess solar power at noon and uses it at 8 p.m.
10. How long can I bank power?
Maharashtra allows monthly banking under current HC stay; future MERC orders may change this.
11. Do I still pay MSEDCL if I buy via open access?
Yes—wheeling charges, CSS, and a small grid support charge still apply.
12. Can small offices participate?
Not directly unless total sanctioned load is ≥100 kW. Many SMEs form a consortium to reach the threshold.
13. Is interstate procurement allowed?
Yes, through CERC interstate open access, but you’ll pay interstate transmission and losses.
14. What is a typical saving vs MSEDCL tariff?
Large buyers often save ₹1–1.5/kWh versus the HT industrial tariff.
15. Are there upfront costs?
Usually none for the buyer in a long-term PPA. The generator bears capex.
16. Can I combine open access with rooftop solar?Yes. Rooftop reduces daytime draw; open access covers remaining needs.
17. How long does approval take?MSEDCL typically issues open-access permission in 15–30 days, subject to grid feasibility.
18. What happens if MERC revises charges mid-contract?Your PPA should have a change-in-law clause to adjust prices.
19. Can I buy through a power exchange like IEX?Yes. Green Day-Ahead (G-DAM) or Green Term-Ahead (G-TAM) markets allow flexible short-term buying.
20. Which industries benefit most?Energy-intensive sectors: cement, steel, chemicals, IT data centres, hotels, resorts, auto manufacturing.
21. What is the minimum contract capacity?At least 100 kW per location or 1 MW aggregate if using collective/group open access.
22. Are Renewable Energy Certificates (RECs) included?Usually yes—confirm in the PPA that the generator transfers RECs to you.
23. Can I exit the contract early?Most PPAs allow early termination with a notice period (typically 6–12 months) and a small exit fee.
24. How do wheeling charges vary by area?Typical intra-state wheeling is ₹0.60–₹0.80/kWh for urban HT feeders; check MERC’s latest tariff order for your zone.
25. Where can I find the official rules and orders?
MERC Order Case 75 of 2025: PDF
MNRE Green Open Access Rules: link
CERC Open Access Procedures: link
IEX Green Market Details: link
Key Documents to Reference & Link
MERC Order, Case No. 75 of 2025 (Review of MYT Order): PDF from MSEDCL site. Mahadiscom
MERC MYT Order, Case No. 217 of 2024 (Main tariff order from March 2025). Mahadiscom
Mercom India’s coverage of the Bombay High Court stay on MSEDCL banking restrictions.
Comments