| Work Detail |
The Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) has filed a petition to seek approval for floating tenders for an additional 5,991 MW of solar power. This initiative aims to meet the Renewable Purchase Obligation (RPO) and provide daytime electricity to farmers across Maharashtra. The petition was submitted on August 6, 2024, as part of a broader strategy to enhance the state’s solar power capacity.
MSEDCL aims to implement a scheme known as Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0). The government of Maharashtra plans to solarize at least 30% of agricultural feeders by December 2025 to ensure that farmers receive reliable electricity during daytime hours. This initiative will not only help MSEDCL fulfill its RPO but also improve the overall quality of electricity supplied to agricultural consumers.
Under this program, MSEDCL expects to reduce its overall power procurement costs while increasing the availability of renewable energy. The government has set certain financial incentives to encourage solar power developers to participate in the initiative. For instance, a fiscal incentive of ?0.25 per kWh will be provided for energy injected at specific voltage levels, supporting the establishment of decentralized solar power projects. Developers can receive this incentive for three years after commissioning their projects, provided they achieve a significant portion of their contracted capacity before the scheduled commercial operation date.
MSEDCL has previously awarded around 9,169 MW of solar power to various developers. With the increasing need for renewable energy, the company is continuing its efforts to procure more solar power. A recent tender was published on July 12, 2024, to cover additional capacities not included in previous rounds of bidding. The terms of these tenders maintain a ceiling tariff of ?3.10 per kWh, ensuring that the advantages of MSKVY 2.0 are extended to the remaining substations.
This additional capacity will help replace night-time supply from conventional sources, like thermal power, with solar energy during the day. This transition is expected to lead to significant savings in overall power purchase costs, particularly by reducing reliance on thermal plants during peak daytime hours. Moreover, this will improve coal stock management and enhance energy security for Maharashtra.
At a recent e-hearing, MSEDCL’s advocate emphasized the importance of the proposed procurement, highlighting that it aims to address locations that have not been previously bid out. The regulatory commission, while discussing the modalities of the power procurement process, instructed MSEDCL to provide detailed submissions on the tender conditions during subsequent hearings. During follow-up discussions, MSEDCL representatives confirmed that there would be no changes to the previously approved tender conditions.
In prior approvals, the regulatory commission had supported MSEDCL’s plans for solar projects under MSKVY 2.0. As part of this process, MSEDCL has already contracted 9,169 MW of solar capacity and aims to procure more to ensure a reliable supply of daytime power to agricultural pumps, replacing more expensive power sources.
The regulatory commission has now approved MSEDCL to initiate the process for this additional procurement of 5,991 MW of solar power. This initiative promises to create a beneficial situation for all stakeholders involved, particularly for farmers who will gain access to reliable daytime electricity, improving their agricultural productivity. |
