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A petition was filed by the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) seeking approval for the long-term procurement of 1,052 MW of solar photovoltaic power. These projects are intended to be set up on land owned by the Water Resource Department (WRD) in Maharashtra, aimed at powering Lift Irrigation Schemes (LIS) across the state. The objective is to ensure a sustainable electricity supply for LIS, primarily used for agricultural purposes.
The Government of Maharashtra has launched a solarization initiative for agricultural feeders under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0). The program has seen various tenders floated, with projects developed on identified land parcels. However, the Lift Irrigation Schemes were not initially part of this solarization plan. Therefore, the government has introduced a scheme that allows the WRD to provide land for solar projects aimed at serving LIS consumers.
The key goals of the scheme include reducing government subsidies, creating a sustainable long-term electricity model for LIS, lowering carbon emissions, and reducing dependency on conventional energy sources. The scheme proposes that the power generated will meet the needs of LIS consumers during both daytime and nighttime. Since the electricity demand during the non-solar hours increases costs, the proposed solar projects will generate excess power during the day, which would help offset the higher costs incurred during peak evening hours. Developers will be incentivized with financial assistance of ?320 lakhs per MW of solar capacity.
The procurement will be carried out through competitive bidding, and the total capacity intended for procurement is 800 MW, covering the solarization of government-operated LIS under the WRD. In the future, LIS operated by cooperative societies or others may also be solarized using a similar model, provided they can allocate the necessary land.
To ensure a revenue-neutral model, the estimated capacity required for LIS consumers is 590.75 MW. However, MSEDCL proposes to install 1,052 MW of solar capacity to account for various factors such as degradation and higher power costs during non-solar hours. The model is designed to not adversely affect consumers at large, as the excess generation is expected to offset the power purchase costs.
MSEDCL has already initiated the bidding process, having floated a tender on 15 March 2024. This was done to avoid delays due to the Model Code of Conduct, which came into effect the day after. Pre-bid meetings and responses to queries were completed shortly thereafter, allowing the process to proceed without interruptions.
During the hearing, MSEDCL highlighted that both MSEDCL and the Government of Maharashtra would benefit from the proposed solarization scheme. The Commission noted that the procurement will help MSEDCL meet its Renewable Purchase Obligations (RPO). Since MSEDCL did not request any deviations from the competitive bidding guidelines, the Commission allowed the company to proceed with the bidding process as outlined.
The Commission emphasized that it had not yet evaluated the full details or potential implications of the proposed plan for supplying power to LIS consumers. However, the petition for the long-term procurement of 1,052 MW of solar power was granted, subject to further consideration of the scheme’s specific modalities in future proceedings. |
