The Madhya Pradesh Electricity Regulatory Commission (MPERC) has adopted the tariffs discovered by MP Power Management Company Limited (MPPMCL) for procuring 800 MW of wind power, along with an additional capacity of up to 800 MW under the greenshoe option. In its order dated 7 October 2026 in Petition No. 45 of 2026, the Commission approved tariffs ranging from ₹3.98/kWh to ₹4.17/kWh for the base capacity, to be supplied under 25-year power purchase agreements (PPAs). It also adopted a single tariff of ₹3.98/kWh, the lowest rate discovered in the auction, for any capacity contracted under the greenshoe option.

MPPMCL, which procures power on behalf of the state’s three distribution companies, undertook the procurement to meet their Renewable Purchase Obligation (RPO) and future demand.

Successful Bidders and Allocated Capacity

Six developers emerged successful after the e-reverse auction. The capacity and tariffs adopted by the Commission are:

Ayana Renewable Power had quoted 200 MW but was allotted 193 MW, as the aggregate contracted capacity was restricted to the tendered 800 MW. The Commission held this partial allotment consistent with the allocation methodology of the Request for Selection (RfS).

How the Bidding Unfolded

MPPMCL issued the RfS on 23 June 2025 through the Bharat Electronic Tender Portal, following a single-stage, two-envelope process with an e-reverse auction. Ten amendments were issued between July 2025 and February 2026, progressively extending the timelines, with online bid submission finally closing on 9 February 2026.

Ten bidders offered a combined 1,357 MW, about 1.69 times the tendered capacity. Two of them, Green Prairie Energy and Zacatin Energy (Five), were disqualified because their financial eligibility rested on foreign affiliates that are not incorporated in India and therefore do not qualify as a “Company” under the RfS. The financial bids of the remaining eight were opened on 18 June 2026, with quotes ranging from ₹3.99/kWh to ₹4.49/kWh. Adyant Enersol, the highest bidder at ₹4.49/kWh, was eliminated under the RfS methodology, leaving 1,057 MW for the auction.

The e-reverse auction was held on 30 June 2026. Six of the seven shortlisted bidders participated, while Waaree Forever Energies did not log in. A five-member Bid Evaluation Committee, constituted on 6 January 2026, oversaw the evaluation, and MPPMCL’s Board of Directors approved the outcome, including the greenshoe tariff, at its 128th meeting on 24 July 2026.

Earlier Regulatory Approvals

The Commission had approved the capacity addition, including the 100% greenshoe option, on 16 June 2025 in Petition No. 33 of 2025. It then approved deviations from the Ministry of Power’s wind bidding guidelines on 19 November 2025 in Petition No. 41 of 2025. These included lowering the earnest money deposit from 2% to 1% of the bid value, a minimum declared capacity utilisation factor (CUF) of 22%, and restricting eligibility to projects commissioned after 31 March 2022, in line with the state’s RPO regulations.

The same order specified that greenshoe capacity would be offered only to successful bidders willing to supply at the lowest (L1) tariff, which explains the single ₹3.98/kWh rate. The Commission had, however, rejected MPPMCL’s proposal to build evacuation lines through MP Power Transmission Company Limited (MPPTCL) for projects of 100 MW or more.

The Commission’s Assessment

Under Section 63 of the Electricity Act, 2003, the Commission examined whether the bidding complied with the guidelines and approved deviations, whether it was transparent, and whether the discovered tariffs were market-reflective. It noted that the reduction achieved in the auction was limited, with three of the six winners offering no cut from their financial bids. The Commission held that the size of the decrement alone could not determine reasonableness and assessed the outcome against external benchmarks.

As the procurement involves STU-connected projects within Madhya Pradesh, the tariffs carry no inter-state transmission (ISTS) charges, losses or trading margin. After loading ₹0.74/kWh for ISTS charges and losses and ₹0.07/kWh for trading margin onto recent SJVN and SECI wind tenders, which discovered ₹3.64–₹3.98/kWh, their landed cost at the state periphery works out to ₹4.45–₹4.79/kWh, higher than MPPMCL’s outcome.

The Commission also considered GUVNL’s wind tariffs of ₹3.64/kWh (April 2025) and ₹3.43/kWh (January 2026), which are ₹0.34–₹0.55/kWh lower. It attributed the gap mainly to wind resource quality: achievable CUF in Gujarat ranges from 25% to 40% against 25% to 32% in Madhya Pradesh, while actual CUF in the state over the past three financial years was only 17.21% to 19.34%. The Commission further noted that developers bear land, connectivity, transmission and liquidated-damage risks over the 25-year term.

Greenshoe Status and Next Steps

Inox Neo Energies informed the Commission that it would not opt for the greenshoe capacity. In an interim application filed on 22 September 2026, MPPMCL had sought early approval to sign PPAs, stating that developers can exercise the greenshoe option only after PPA execution and that delays risked bidders committing capacity elsewhere.

The Commission directed MPPMCL to execute the PPAs as per the RfS. It also directed MPPMCL and the successful bidders to coordinate with MPPTCL on project locations, interconnection points, phasing and commissioning schedules, including for the greenshoe capacity.

Official Sources

1. MPERC – Order in Petition No. 45 of 2026 & IA No. 30 of 2026 (dated 07.10.2026): https://mperc.in/uploads/petition_order_document/MPERC_PNo_45_2026_Final_Order_07_10_2026.pdf
2. MPERC – Order in Petition No. 41 of 2025 & IA No. 16 of 2025 (dated 19.11.2025): https://mperc.in/uploads/petition_order_document/MPERC_PNo_41_2025_AND_IA_16_2025_Final_Order_19_11_2025.pdf
3. MPERC – Final Orders Issued in Petitions: https://mperc.in/petition?status=Disposed