The Maharashtra Electricity Regulatory Commission (MERC) has denied the Captive Power Producers Association’s (CPPA) petition seeking changes to existing open access regulations to allow the establishment of wind-solar-thermal hybrid power projects. The Commission stated that substantial regulatory changes would be required to integrate thermal and renewable energy sources effectively. Background In April 2018, the Ministry of Power (MoP) introduced the ‘Flexibility in Generation and Scheduling of Thermal Power Stations to Reduce Emissions’ (MoP Bundling Scheme 2018), allowing power generators to incorporate renewable energy in their operations. This scheme was revised in 2021 and 2022, enabling companies with generation stations to set up projects that could be co-located or located at new sites. The National Wind-Solar Hybrid Policy, introduced in 2018, aimed to promote large grid-connected wind-solar hybrid systems. Referring to these policies, the CPPA petitioned to replace captive thermal projects with renewable energy hybrid projects in phases. They also requested interim relief to secure permissions from Maharashtra State Electricity Distribution (MSEDCL) and Maharashtra State Electricity Transmission (MSETCL-STU) for connectivity to operate wind-solar-thermal hybrid projects in the state. MSEDCL and MSETCL responded by pointing out that there were no specific policies for wind-solar-thermal hybrid projects in Maharashtra. They argued that the current regulations treat renewable energy and thermal power separately, making integration difficult. MSEDCL further argued that the petition was not maintainable as it sought regulatory changes through a single petition, bypassing the public consultation process. Commission’s analysis While acknowledging the validity of CPPA’s request to address the regulatory gap surrounding hybrid projects, the Commission emphasised that any amendments to the regulations must go through a public consultation process, incorporating stakeholder input. The Commission dismissed MSEDCL's objection to the petition's maintainability and, after reviewing the Bundling Scheme, noted the potential benefits of combining renewable and thermal power. However, it pointed out that the scheme did not address its applicability to open access or captive transactions, nor did it consider banking, which is critical for renewable energy open access transactions. MERC concluded that significant regulatory changes would be needed to facilitate the bundling of thermal and renewable energy sources. These changes would need to address open access, demand-side management, grid codes, and renewable energy tariffs, areas where current regulations do not support such integration. The Commission rejected the CPPA’s petition and instructed the Grid Coordination Committee to conduct a detailed study on implementing the Bundling Scheme in Maharashtra, incorporating input from the Grid Controller of India. It directed the Committee to submit a draft framework within six months, which MERC would consider for potential regulatory amendments or new regulations. In a recent decision, MERC also ordered MSEDCL to refund Rs 14.3 million to a wind power generator for excess wheeling and transmission charges levied from April 2016 to May 2023. (Mercom)