Maharashtra Regulator Approves 5,991 MW of Solar Power Procurement

The Maharashtra Electricity Regulatory Commission (MERC) has given the green signal to Maharashtra State Electricity Distribution (MSEDCL) to procure an additional 5,991 MW of solar power through competitive bidding. The move is aimed at meeting the state’s Renewable Purchase Obligation (RPO) and providing daytime electricity to farmers across Maharashtra. The tender is part of the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0), a government initiative to provide solar power to at least 30% of farm feedstock by December 2025. The scheme is designed to help MSEDCL meet its RPO targets, reduce the overall cost of purchasing electricity and improve the quality of electricity supplied to agricultural consumers during the day. The competitive bidding process is being conducted through MSEB Solar Agro Power (MSAPL), a subsidiary of MSEB Holding Company. The procurement is being split into two categories: 5,745 MW under Open Tender & 246 MW in Cluster Tender The additional solar capacity is expected to replace night-time supply from conventional sources, potentially leading to significant reductions in the overall cost of power purchase. This transition will also help improve coal inventory management by reducing reliance on thermal power plants during peak daytime hours. The procurement will help MSEDCL achieve its incremental RPO targets, which are expected to increase from 29.91% in 2024-25 to 43.33% in 2029-30. The distributed RPO component is expected to increase from 1.50% to 4.50% during this period. The solar procurement will enable MSEDCL to rationalize its reliance on Koyna hydropower plant by reserving its limited capacity for peak loads and emergencies. This is expected to enhance Maharashtra’s energy security. In May, the Commission approved MSEDCL's proposal to procure 150 MW of solar power at ?3.3 (~$0.040)/kWh from projects under MSKVY 2.0.