Maharashtra Clears 5,991 MW Solar Power Procurement to Boost Daytime Supply to Farmers

Maharashtra has approved the procurement of 5,991 MW of solar power to meet RPO targets and provide daytime power to farmers under the Mukhyamantri Saur Krushi Vahini Yojana 2.0.

The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of an additional 5,991 MW of solar power by the Maharashtra State Electricity Distribution Company (MSEDCL) through competitive bidding. This decision aims to meet the state's Renewable Purchase Obligation (RPO) and enhance daytime electricity supply to farmers under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0).

Solar Initiative to Benefit Farmers and Boost RPO Compliance

The MSKVY 2.0 initiative targets solarizing at least 30% of Maharashtra's agricultural feeders by December 2025. This move is designed to help MSEDCL achieve its rising RPO targets, reduce power procurement costs, and ensure a stable supply of daytime electricity to farmers, thereby improving the quality of power.

Competitive Bidding and Tariff Ceiling

The procurement, managed by MSEB Solar Agro Power (MSAPL), will be divided into two categories:

• 5,745 MW through Open Tender

• 246 MW through Cluster Tender

To attract solar power developers while maintaining cost-effectiveness, the Commission has set a ceiling tariff of ₹3.10/kWh (approximately $0.03/kWh) for these tenders, consistent with previous rounds of competitive bidding.

Impact on Power Costs and Coal Management

The additional solar capacity is expected to replace nighttime supply from conventional sources, leading to significant reductions in overall power purchase costs. This transition will also help reduce reliance on thermal power plants during peak daytime hours, improving coal stock management.

Achieving RPO Targets and Enhancing Energy Security

With Maharashtra's RPO targets set to increase from 29.91% in 2024-25 to 43.33% by 2029-30, this procurement is crucial for MSEDCL's compliance. The state’s distributed RPO component will also rise, from 1.50% to 4.50% during the same period. Additionally, this solar procurement will allow MSEDCL to better manage its dependence on the Koyna hydroelectric power plant, reserving its capacity for peak loads and emergencies, which is vital for improving the state’s energy security.

Recent Developments in Solar Procurement

In May 2023, MERC approved MSEDCL's proposal to procure 150 MW of solar power at ₹3.30/kWh ($0.04/kWh) under MSKVY 2.0. Earlier this year, the Commission also included GEOA (Green Energy Open Access) in the Maharashtra Electricity Regulatory Commission (Distribution Open Access) (Second Amendment) Regulations, 2023, further enhancing the state’s clean energy initiatives.