Maharashtra 500 MW Hybrid Tender Draws Single Bid at Record Low ₹2.48/kWh

Mumbai, Maharashtra's first large-scale wind-solar hybrid tender has pulled in only one bid, but that bid came in at a record low tariff of ₹2.48 per kilowatt-hour. The state's Maharashtra State Electricity Distribution Company Limited (MSEDCL) floated the 500 MW tender in December 2024. The sole bidder was a joint venture between ReNew Power and a local developer, Green Infra Projects.

The tariff of ₹2.48/kWh undercuts the previous low of ₹2.62/kWh seen in a similar hybrid tender in Gujarat last year. It also sits well below the current average solar tariff of around ₹2.80/kWh and wind tariff of about ₹3.10/kWh in Maharashtra. Analysts say the price reflects falling costs of solar panels and wind turbines, plus the benefit of combining two sources that generate power at different times of the day.

Why only one bidder?

Industry sources point to tough land and transmission rules in Maharashtra. "Getting land for a 500 MW hybrid project in the state is a nightmare," said a senior official at a renewable energy firm who asked not to be named. He added that MSEDCL's payment track record also makes bidders wary. The discom has delayed payments to generators in the past, though it has improved over the last two years.

Another factor: the tender required bidders to install at least 40% of the capacity as wind, which calls for more land and higher upfront costs than a pure solar plant. Many developers chose to sit out.

ReNew Power and Green Infra Projects plan to build the hybrid park in the drought-prone Solapur district, where strong winds blow from April to September and the sun shines year-round. The project is expected to come online by March 2027.

Cheaper than coal

The ₹2.48/kWh tariff is lower than the average cost of coal-fired power in Maharashtra, which stands at about ₹3.50/kWh when including fuel and transport. MSEDCL buys roughly 80% of its power from coal plants. Switching even a small share to hybrid renewables could save the state-owned discom money and help it meet its renewable purchase obligation (RPO) targets.

Maharashtra has a target of 17 GW of renewable capacity by 2030. It currently has about 12 GW, most of it solar. The state's wind capacity has stagnated at around 5 GW for years due to land and grid bottlenecks.

What happens next?

MSEDCL will now open the single bid for technical and financial evaluation. If the bid passes muster, the agency will issue a letter of award. The state electricity regulator must also approve the tariff. That process could take two to three months.

If the deal goes through, ReNew Power and Green Infra Projects will have to arrange financing for the roughly ₹2,500 crore project. They plan to use a mix of debt from Indian banks and equity from internal funds. The developers have already signed a memorandum of understanding with the Maharashtra Industrial Development Corporation for land acquisition.

"One bid is not ideal, but a low tariff like this sends a strong signal to the market," said Deepti Sharma, an energy analyst at the Pune-based think tank Climate Trends. "It shows hybrid projects can compete with coal on price, if the policy and land hurdles are sorted out."