Maharashtra’s MSKVY scheme aims to provide daytime power supply to the agricultural sector, reduce line losses, and lessen the subsidy burden on the government.
The Maharashtra Electricity Regulatory Commision (MERC) has partially approved Maharashtra State Power Generation Co. Ltd or MSPGCL’s petition for long term solar energy procurement at low tariff. MERC approved a tariff of ₹3.04/kWh for the 100 MW solar projects in the Aurangabad region, while MSPGCL requested 400 MW for other regions too.
MSPGCL submitted a request for approval to adopt a tariff rate of ₹2.97/kWh for the long-term procurement of 100 MW of solar power from projects under the ‘Mukhyamantri Saur Krishi Vahini Yojana’ (MSKVY). Filed on May 9, 2023 under the Electricity Act, 2003, this petition aims to secure approval for this tariff rate and address additional issues related to renewable energy obligations. MSPGCL first sought to adopt a tariff for a 100 MW solar project, but later amended the request to include an additional 400 MW on November 28, 2023.
The MSKVY, initiated by the Government of Maharashtra (GoM), aims to provide daytime power supply to the agricultural sector, reduce line losses, and lessen the subsidy burden on the government through a Public-Private Partnership (PPP) model.
On August 29, 2022, MSPGCL issued an Expression of Interest (EoI) inviting bids for the establishment of 600 MW of solar power projects across Maharashtra. Following the evaluation of bids, Ellume Solar Pvt. Ltd. (ESPL) emerged as the lowest bidder for the Aurangabad region, offering a tariff of ₹2.97/kWh. MSPGCL proposed adopting this tariff, but ESPL declined to negotiate it further.
ESPL showed interest in developing an additional 400 MW capacity across Nashik, Amaravati, Nagpur, and Pune regions. However, MSPGCL’s proposal to allocate this extra capacity faced objections from MSEDCL, raising concerns about the integrity of the bidding process.
The MERC reviewed the proposal and approved a tariff of ₹3.04/kWh for the 100 MW solar projects in the Aurangabad region. However, it did not approve the request for an additional 400 MW capacity allocation, maintaining the bidding process’s integrity.
MSPGCL and MSEDCL were instructed to work together on finalising substations and project sizing to ensure effective project implementation within a month.
