Merc approves additional 420 mw power supply for Mumbai to meet peak demand

Time of India

20-05-2025

Mumbai:
Adani Electricity
and
Tata Power
are moving swiftly to make emergency electricity purchases as Mumbai faces a surge in power demand, which peaked at around 4,300 MW in the past. The two companies are set to procure 420 MW of thermal power at competitive rates, approximately ₹5.40 per unit, to meet the city's urgent requirements.
The
Maharashtra Electricity Regulatory Commission
(MERC) has issued orders in this connection.
A power expert said, "Electricity distribution in Mumbai is managed mainly by Adani Electricity, Tata Power, and BEST. However, when demand rises sharply during the summer and in October, the companies are compelled to buy power from various markets at higher rates for distribution."
Accordingly, Adani Electricity and Tata Power have sought medium-term power procurement, which was sanctioned by the MERC in its most recent order.
The MERC order details that Adani Electricity can proceed with power purchase agreements to acquire 175 MW at Rs 5.47 per unit from two projects, plus 100 MW at Rs 5.36 per unit from another project. Tata Power, meanwhile, was cleared to purchase 70 MW at Rs 5.45 per unit and 75 MW at Rs 5.47 per unit. These agreements will ensure a combined additional power supply of 420 MW collectively for the companies from April 2025 to April 2027.
Mumbai's peak electricity demand has steadily climbed over the past two years. On May 22, 2024, the city recorded its highest-ever peak demand of 4,306 MW. Even outside of summer, Mumbai's average peak demand surpasses 3,200 MW.
Power utilities reported on Tuesday that they are prepared to accommodate increasing demand amid a heatwave alert. Adani Electricity, which supplies to over 31.5 lakh suburban consumers, will meet requirements through a mix of long-term, medium, and short-term contracts, including 1,300 MW from long-term agreements, renewable sources such as solar, wind, and hybrid, at least 500 MW from medium-term contracts, and another 700 MW of solar and wind bought on short-term deals.
Any additional needs will be sourced from the short-term power market, according to sources in the company.
A Tata Power official said the utility recorded its highest-ever demand, reaching 1,083 MW on April 23. It surpassed the previous record of 1,063 MW set last year. Tata Power maintains a diverse portfolio—covering thermal, hydro, gas, solar, and wind—and has secured 1,630 MW of supply.
BEST is similarly prepared to meet demands of 900 MW, up from the usual 700-800 MW, and has entered into short-term agreements to purchase extra electricity.