The Maharashtra Electricity Regulatory Commission (MERC) has approved the procurement of over 7,000 MW of electricity from solar generators at a low tariff of Rs 2.82 to Rs 3.10 per unit by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). This is part of the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0) initiative, which aims to solarize agricultural feeders by December 2025. The solar power generated will be used to fulfill MSEDCL’s renewable purchase obligation.
The solar power will be procured through power purchase agreements with successful bidders for solar projects. MSEDCL’s Managing Director, Lokesh Chandra, has stated that Maharashtra is the first state to shift agriculture to solar power, and this is the world’s largest distributed renewable energy project for farm lands. With this procurement, the state will have a total of 16,000 MW of solar power capacity, with 9,000 MW already approved.
According to MSEDCL, the procurement of solar power will result in a reduction of the overall cost of power procurement, which will in turn reduce the burden of cross-subsidy on industrial and commercial consumers. The initiative is expected to provide daytime electricity to agricultural consumers through decentralized solar power projects, promoting faster procurement of distributed renewable energy for farm lands. The MERC approval is seen as a significant step forward in achieving the state’s renewable energy goals.