Maharashtra’s electricity regulator, MERC, has approved MSEDCL’s proposal to procure 1,475 MW of solar power from NHPC Ltd at Rs 2.6 per unit for 25 years. This significant move supports MSEDCL’s goals to meet its Renewable Purchase Obligation and increase the state’s renewable energy share from 13% to 52% by 2030.
What MERC Approved: NHPC Solar Supply and 25-Year PPA
Maharashtra is firmly accelerating its transition to a greener energy landscape, driven by key regulatory approvals. The Maharashtra Electricity Regulatory Commission (MERC) has recently sanctioned MSEDCL’s proposal to procure a substantial 1,475 MW of solar power from NHPC Ltd. This power will be supplied at a competitive tariff of Rs 2.6 per unit for a long-term period of 25 years.
This pivotal approval is instrumental in MSEDCL’s strategic objectives: meeting its Renewable Purchase Obligation (RPO) and significantly increasing the state’s renewable energy share. The state aims to boost its renewable energy contribution from the current 13% to an ambitious 52% by 2030.
The Commission has also underscored the critical need for improved coordination with the state transmission utility. MERC has urged the expedited upgrading of transmission infrastructure, even seeking government intervention if necessary, to overcome any implementation hurdles that might arise. The regulator’s commitment, highlighted by this proactive stance, ensures that the growth in renewable capacity is matched by robust grid infrastructure.
A Week of Major Renewable Procurements
This approval from MERC follows swiftly on the heels of another significant decision. Just last week, on September 10th, MERC also approved MSEDCL’s proposal for the procurement of 780 MW of wind-solar hybrid power from NTPC. The solar component of this hybrid power is being procured at a competitive tariff of ₹3.42–3.43 per unit. These twin approvals underscore a focused strategy by MSEDCL to rapidly expand its renewable energy portfolio through competitive bidding and long-term agreements with major players.
What This Means for Consumers: Tariffs and Bill Impacts
The core objective behind these large-scale renewable energy procurements, particularly solar power at increasingly competitive rates, is clear: to reduce the overall cost of purchasing power for state distribution. A senior MSEDCL official highlighted that this strategy expects to translate into reduced power tariffs for nearly 3 crore consumers across Maharashtra. Consequently, consumers can anticipate lower electricity bills in the near future. This direct benefit to the end-user demonstrates the tangible impact of the state’s renewable energy drive.
Maharashtra’s Ambitious Renewable Energy Growth Targets
MSEDCL has laid out a truly impressive vision for the state’s energy future. MSEDCL plans to achieve 45,000 MW of electricity generation capacity by 2030, sourcing an astounding 38,000 MW from green energy. Realizing this vision will require an estimated investment of ₹3 Lakh Crore and project the creation of approximately 7 Lakh new jobs. Crucially, this massive expansion in green energy is expected to reduce electricity tariffs noticeably over the next five years
Expert Insight: Lower Tariffs and Industrial Growth
Lokesh Chandra, MD of MSEDCL, emphasized the projected benefits: “In the next five years, tariffs are set to drop even more as we are procuring more green power through solar and hydro. Industry consumers will benefit, ensuring the entry of more industries to Maharashtra.” This statement highlights the dual advantage of Maharashtra’s renewable push: making electricity more affordable for all consumers while simultaneously creating a more attractive environment for industrial development.
Transmission and Grid Upgrades: The Bottleneck and the Fix
While the procurement of renewable capacity is accelerating, the practical integration of this intermittent power into the grid remains a significant challenge. The large-scale addition of solar power necessitates substantial upgrades to transmission infrastructure, robust grid access coordination, and the deployment of large-scale energy storage solutions, such as Battery Energy Storage Systems (BESS). These technologies are essential for shifting daytime solar generation to meet peak evening demand.
In response, MSEDCL has proposed substantial battery storage projects. These initiatives aim to support the state’s ambitious solar goals, including plans for storage to back up an estimated 16,000 MW of solar generation. MERC frequently orders the State Transmission Utility to coordinate closely and implement necessary grid strengthening measures alongside renewable capacity additions.
- Explore the official Maharashtra MERC orders for detailed insights: https://merc.gov.in/