The Maharashtra Electricity Regulatory Commission (MERC) has given the green light for the Maharashtra State Electricity Distribution (MSEDCL) to procure an additional 5,991 MW of solar power through competitive bidding.

The decision aims to meet the state’s Renewable Purchase Obligation (RPO) and provide daytime power to farmers across Maharashtra.

The procurement is part of the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0), a government initiative to solarize at least 30% of agricultural feeders by December 2025.

The program is designed to help MSEDCL meet its RPO targets, reduce overall power procurement costs, and improve the quality of electricity supplied to agricultural consumers during the day.

The competitive bidding process will be conducted through MSEB Solar Agro Power (MSAPL), a subsidiary of MSEB Holding Company.

The procurement will be split into two categories:

• 5,745 MW under Open Tender
• 246 MW in Cluster Tender

The Commission has set a ceiling tariff of ₹3.10 (~$0.03)/kWh for these tenders, consistent with previous bidding rounds. This approach aims to ensure cost-effectiveness while attracting solar power developers.

The additional solar capacity is expected to replace the nighttime supply from conventional sources, potentially leading to significant reductions in overall power purchase costs.

This transition will also help improve coal stock management by reducing reliance on thermal power plants during peak daytime hours.

The procurement will assist MSEDCL in meeting its increasing RPO targets, which are set to rise from 29.91% in 2024-25 to 43.33% by 2029-30. The distributed RPO component is slated to increase from 1.50% to 4.50% during this period.

The solar power procurement will allow MSEDCL to rationalize its dependence on the Koyna hydroelectric power plant, 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.

Earlier in 2023, the Maharashtra Electricity Regulatory Commission (MERC) included GEOA in the Maharashtra Electricity Regulatory Commission (Distribution Open Access) (Second Amendment) Regulations, 2023.

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