MUMBAI: Maharashtra Electricity Regulatory Commission (MERC) has allowed the Distribution Business of Tata Power, India’s largest integrated power utility, to have a Power Purchase Arrangement (PPA) with its generation arm for 700 MW to be supplied from its Trombay Thermal and Hydro plants for a period of five years from April 1, 2019 to March 31, 2024.
Tata Power is India’s largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10757 MW.
After the due diligence for ensuring the reliability of supply and cost competitiveness for the Tata consumers in Mumbai, the Commission, in its order on March 26, 2019, approved the arrangement.
“Tata Power has been serving the city of Mumbai for over a century and continues to be committed to supplying the most reliable and competitive power meeting the needs of their consumers” said Praveer Sinha, CEO & managing director, Tata Power.
Earlier in the month of January, 2019, the Commission had approved, the Power Purchase Agreement (PPA) of Tata Power with BEST for 677 MW. The process of power tie-up was undertaken by the distribution business for its consumers for the period of five years starting April 1, 2019. The existing power tie-up was scheduled to expire on March 31, 2019. This will ensure cheaper power to Mumbai consumers with the added advantage of inexpensive hydro peaking power.
This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations.