On 7th March, 2024, Govt. of Maharashtra formally issued ‘Letters of Award’ to 95 project developers for a staggering 9,000 MW of ‘shovel ready’ distributed solar capacity dedicated to supplying reliable day-time electricity supply to agriculture. This is the largest aggregated project in terms of distributed solar capacity in India and possibly anywhere in the world. This was possible due to launch of a substantially revamped MSKVY 2.0 and Mission 2025 in early 2023 by the GoM to give impetus to the pace and scale of solar capacity addition for agriculture. Beyond the ambitious target setting, the real success of the MSKVY 2.0 lies in the preparatory work done by the energy department and energy companies in the State. This capacity is likely to generate 15 billion units/year and save nearly Rs 2.5/kWh (avg. Power Purchase Cost of Rs 5.54/kWh – avg. winning tariff of ~ Rs 3.06/kWh) resulting in a nominal power purchase cost saving of Rs 1 lakh crore over the 25-year PPA period. This will go a long way in reducing the subsidy and cross-subsidy burden of GoM and MSEDCL respectively. The state will receive investments of nearly Rs. 36,000 Cr resulting in ~25,000 jobs distributed across the state. Maharashtra's vision, ambition and leadership in implementing the world's largest distributed solar program for agriculture has set a new benchmark and would serve as a beacon for other states to learn, appropriately emulate and innovate as per their specific context. A version of this article appeared in the Hindu Business Line on 21st March, 2024. 

Downloads