The State Commission had approved the PPA under Section 62, however, despite such approval, the state genco was directed to substantiate demand supply gap, competitiveness of project and merit order positioning. Unless the State Commission approves the same, the Genco was not permitted to pursue development of the project.
Mercados undertook a detailed analysis of the demand supply pattern for the next 10 years using data from secondary sources (CEA, State discom, Power for All etc. ). Detailed analysis was undertaken from probable supply sources, renewable capacity addition envisaged as per GOI plan to add 175 GW in the country. Scenarios were created under optimistic, pessimistic and realistic scenario. The petition was prepared and presented before the Commission. After detailed deliberations, the state utility was permitted to go ahead with the development of the project.