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MERC Rejects Captive Power Producers' Petition on Wind-Solar-Thermal Hybrid Plants

Feb 11, 2025

The Maharashtra Electricity Regulatory Commission (MERC) has rejected a petition by the Captive Power Producers Association (CPPA) requesting changes to regulations for setting up and operating wind-solar-thermal hybrid power plants under open access. These plants were proposed under the Ministry of Power’s Bundling Scheme 2022, which seeks to integrate thermal or hydro power with renewable energy (RE) and storage for greater flexibility in power generation.

MERC ruled that current regulations do not permit the integrated operation of RE and non-RE generators due to differences in scheduling, open access permissions, billing, banking, deviation settlement mechanism (DSM) accounting, and merit order dispatch. Implementing the Bundling Scheme would require major regulatory changes in Open Access, DSM, Grid Code, and RE Tariff Regulations.

To assess feasibility, MERC has tasked the grid coordination committee with conducting a detailed study, seeking inputs from the Grid Controller of India, the Central Electricity Authority, and key stakeholders. The committee will evaluate aspects like metering, scheduling, DSM accounting, and transmission charges. Within six months, it must submit a draft framework outlining necessary regulatory and technical changes, which may lead to amendments or new regulations.