BEST seeks short-term agreements to augment power supply
This shortfall was initially supposed to be met through renewable energy (RE), but this will be possible only from December 2024 onwards.
Mumbai: With the Brihanmumbai Electricity Supply and Transport (BEST) fearing a shortfall of 40 to100 megawatts (Mw) from this summer to March 2024, the undertaking has sought immediate short-term agreements with power suppliers.

This shortfall was initially supposed to be met through renewable energy (RE), but this will be possible only from December 2024 onwards. BEST thus approached the Maharashtra Electricity Regulatory Commission (MERC), which on March 31 passed an order asking it to go in for short-term power procurement from April ‘23 to March ’24 to meet the shortfall.
“We have an agreement with the Solar Energy Corporation of India (SECI) for procurement of 400 Mw of wind-solar hybrid power at a tariff of ₹2.48 per unit for 25 years,” explained a senior BEST official. “An additional 234 Mw standalone solar agreement is also in place. However, the actual power flow from these projects is anticipated to commence only from December 2024 and June 2025 respectively.”
One of the issues in the way of getting this RE is the presence of the endangered Great Indian Bustard in Rajasthan and Gujarat, from where the electricity will be supplied through transmission lines. Power lines have been cited as the biggest threat to the species, and a Supreme Court order of 2021 mandated that all overhead electricity lines in Great Indian Bustard habitats be laid underground. There is also the matter of transmission networks on the borders of Mumbai needing to be strengthened. Until that time, the short-term power purchase agreement will be needed.
In its petition, BEST has mentioned that it has an allocation of 90 Mw from Tata Power’s gas-based Unit-7 in Trombay, which generates 180 Mw. BEST officials have stated that the hydro resource is limited, and is required to be used in the evening and night periods when the rates of power exchange are on the higher side.
‘Due to a substantial increase in imported coal and foreign currency fluctuations, the actual cost of coal-based thermal generation from its contracted Tata Power’s Unit-5 and Unit-8 has sharply increased,’ states the BEST petition. ‘The variable charge of these generating units, which was at ₹3.31 per unit in January 2021, has now sharply shot up to ₹8.58 per unit in January 2023. The prevailing geopolitical crisis will have its further impact on prices of imported coal and natural gas in the ensuing period.’
Recently at a press conference, Tata Power had stated that it was pumping in ₹500-700 crore into upgrading its transmission network. It is also looking at buying cheaper power from the open market rather than depending majorly on its power plants in Trombay.
Considering the volatility in the power market, BEST has decided to purchase short-term power from 40 Mw to 150 Mw for different time slots. During the peak hours of 9am to 6pm, the rates vary from ₹9 to ₹11 per unit for power exchange. The average rate of ₹7.43 per unit is less than the rates of Tata’s thermal units. “This will benefit electricity consumers, as cheaper power will be available,” said a senior BEST official.
According to the recent tariff that is in place from April 1, the BEST has hiked its rates by 5 percent in 2023-24, with an estimated increase of 6.4 percent in 2024-25. Tata Power, which has hiked its rates by 11.9 percent and 12.2 percent in 2023-24 and 2024-25 respectively, has proved to be the most expensive for its 6.5 lakh to 7 lakh-odd consumers. Adani Electricity has increased tariffs by 2.18 percent in 2023-24 and 2.13 percent in 2024-25 for its 26-lakh odd consumers.
The island city’s demand – BEST supplies to 10.60 lakh customers from Colaba/Cuffe Parade to Sion/Mahim – is projected at 860 Mw, 880 Mw and 874 Mw respectively for the months of April, May and June.

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