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Bombay High Court Stays MSEDCL’s Restriction on Banked Renewable Energy

The Bombay High Court has stayed the Maharashtra State Electricity Distribution Company’s (MSEDCL) restriction limiting the use of banked renewable energy to solar hours. The court ruled that the older multi-year tariff (MYT) framework—which permits renewable energy usage anytime except during peak hours—remains valid until further orders.

This decision stems from writ petitions filed by the National Solar Energy Federation of India (NSEFI), challenging the Maharashtra Electricity Regulatory Commission’s (MERC) order that restricted banked power usage to the same time-of-day slot and solar hours. Solar developers had criticized the MERC ruling, warning that it would undermine project savings and discourage adoption of solar energy for MSEDCL consumers.

The petitioners argued that the new restrictions unfairly applied only to MSEDCL’s consumers, while those under Tata Power and Adani Electricity remained unaffected. They also contended that applying the revised banking norms retrospectively to existing agreements violated established legal principles.

MSEDCL maintained that while billing was done based on solar hours, surplus energy was not forfeited, thus complying with the court’s interim directions. It also claimed that staying the MERC order did not automatically restore the old MYT framework.

Rejecting these arguments, the High Court clarified that its earlier interim stays effectively meant reverting to the original MYT provisions, allowing flexible use of banked renewable energy. It directed that billing should follow the MYT framework, with petitioners allowed to pay disputed bills under protest.

The final ruling on the writ petitions is still awaited, but for now, the court’s order is seen as a significant relief for renewable energy developers and open access consumers in Maharashtra.