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Home Renewable

MERC Approves 5,991 MW Solar Procurement to Strengthen Renewable Energy in Maharashtra

Urja Daily by Urja Daily
September 26, 2024
in Renewable
Reading Time: 1 min read
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The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of 5,991 MW of solar power by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) through competitive bidding. This decision is aimed at helping the state meet its renewable purchase obligation (RPO) and ensure daytime power supply to farmers. 

This agreement comes under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0). MSKVY 2.0 aims to solarise at least 30 per cent of agricultural feeders by December 2025. The solar procurement will further improve the quality and reliability of electricity for agricultural consumers and lower overall power procurement costs.

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The procurement will be managed by MSEB Solar Agro Power (MSAPL), a subsidiary of MSEB Holding Company, and split into two categories: 5,745 MW through an open tender and 246 MW through a cluster tender. The commission has set a ceiling tariff of Rs 3.10 per kWh to ensure competitive rates for developers and simultaneously controlling costs.

MSEDCL is expected to meet increasing RPO targets, rising from 29.91 per cent in 2024-25 to 43.33 per cent by 2029-30, and better manage the Koyna hydroelectric plant’s limited capacity for peak demand. 

Tags: MERCMSEDCLRenewable EnergySolar Agro Power
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