MERC clears NMC’s waste-to-energy plant, accords ‘must-run’ status

The Maharashtra Electricity Regulatory Commission (MERC) has approved Nagpur Municipal Corporation’s (NMC) waste-to-energy plant, and also accorded it ‘Must-Run’ power plant status. All decks have now been cleared for execution and smooth running of the project planned three years ago.
MERC passed an order on the petition filed by NMC’s private operator — Nagpur Solid Waste Processing and Management Private Ltd (NSWPMPL)— on Monday. NSWPMPL is a company incorporated by Essel Infraprojects Limited and Hitachi Zosan India Private Ltd.

With the MERC order, Maharashtra State Electricity Distribution Company Limited (MSEDCL) will purchase 11.50MW power to be generated at the plant. As it is a renewable energy project, MERC has fixed power purchase rate at Rs7 per unit, which is almost double the gross power purchase rate of MSEDCL, which is Rs3.90 per unit. Since it was accorded ‘Must Run’ power plant status, MSEDCL will have to continue purchasing power from the plant even if demand is low.

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