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MERC Approves Additional 500 MW Pumped Hydro Storage from Torrent Power

The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company’s (MSEDCL) request to procure an additional 500 MW of pumped hydro storage from Torrent Power at the same tariff adopted earlier under competitive bidding. While the Commission stressed that this approval is an exceptional case and not a precedent, it acknowledged the urgent need for storage to balance renewable integration.

MSEDCL’s tender, floated in March 2024, originally sought 2,000 MW with a 1,000 MW greenshoe option. MERC later approved procurement of up to 4,000 MW, with JSW Neo Energy and Torrent Power emerging as key winners. Torrent Power, already allocated 1,500 MW, requested an additional 500 MW, raising its total to 2,000 MW. MERC approved this at ?8.39 million/MW/annum with a 25% cycle loss.

The Commission highlighted that pumped hydro storage is critical to store surplus renewable power and reduce costs by avoiding cheap sell-offs in the market. It also supports compliance with Maharashtra’s Energy Storage Obligation under the 2024 RPO regulations. This move strengthens the state’s long-term renewable energy strategy while reinforcing the role of storage in grid stability.