Team Blitz India
MUMBAI: The Maharashtra Electricity Regulatory Commission (MERC) has allowed Tata Power Company-Distribution to extend its existing power purchase agreement (PPA) with Tata Power CompanyGeneration by another five years, till 2029.
The company had approached the Commission in February 2023, seeking approval for its power procurement plan for the period 2024-25 to 2034-35. Power utilities in Mumbai have been facing difficulties in availing the transmission corridor since the past one decade.
The utilities are also unable to optimise their portfolio through cheap power from outside Maharashtra as there are constraints at the state periphery. They are required to purchase high-cost power from embedded thermal generators of Tata Power-Generation, which is ultimately resulting in higher tariff for consumers in Mumbai.
The transmission constraint for bringing power into Maharashtra and eventually to Mumbai is a well-recognised issue and a pressing one.
As of now, available transmission capability of Mumbai is around 2,522 megawatts, whereas Mumbai’s demand recently touched 4,100 megawatts. For any power procurement plan for Mumbai to be executed, Mumbai’s transmission capability needs to be enhanced by nearly 60 per cent, which will take considerable time, the Commission’s.
