Maharashtra to Quadruple Solar Power Production to 12,800 MW in 14 Months Under New Scheme

Mumbai:

Maharashtra is set to make a significant leap in its solar energy production, aiming to increase capacity from the current 3,600 MW to 12,800 MW within the next 14 months. This ambitious plan comes after the state took 17 years to reach its current solar capacity.

The expansion is driven by the state's Mukhyamantri Saur Krushi Vahini Yojana 2.0, a pioneering solarisation initiative for agricultural pumps that is now being replicated in states like Uttar Pradesh, Karnataka, and Rajasthan.

Strategic Impact on Power Costs and Subsidies

Maharashtra's Deputy Chief Minister and State Power Minister, Devendra Fadnavis, highlighted that work orders for the project have already been issued. The enhanced solar capacity is expected to more than halve the power purchase costs for distributing electricity to agricultural pumps.

This reduction will significantly decrease the cross-subsidy burden, leading to lower tariffs for industrial and commercial consumers. Additionally, the government expects to reduce its subsidy burden by at least ₹4,500 crore. Fadnavis described the initiative as a sustainable roadmap for the solarisation of the agriculture sector.

Key Figures and Projections:

• Current Solar Capacity: 3,600 MW
• Target Solar Capacity: 12,800 MW within 14 months
• Government Subsidy Reduction: ₹4,500 crore
• Potential Investment: ₹40,000 crore in rural areas
• Job Creation: 30,000 jobs

Benefits of Localised Solar Generation

The Mukhyamantri Saur Krushi Vahini Yojana 2.0 eliminates the need for long transmission lines to transport solar energy from distant locations to agricultural fields in Maharashtra. Solar energy will be generated near farmlands and supplied through nearby feeders, drastically reducing transmission and distribution losses and ensuring a reliable power supply.

Impact on Farmers:

• Farmers' Electricity Consumption: 30% of the state's total
• Daytime Electricity Supply: 8-10 hours for 1 crore farmers
• Additional Income for Farmers: ₹1.3 lakh per hectare per annum from leasing non-fertile land.

Execution and Investment Opportunities

The state has taken a grassroots approach by identifying 40,000 acres of agricultural land close to substations. Maharashtra Agro Solar, a newly formed company, has handled the collection of NOCs, land data, and geo-tagging, and created 22 special purpose vehicles to generate at least 200 MW in each cluster. This approach has attracted significant interest from large companies, resulting in bids for 9,200 MW of solar power generation, more than double the expected amount.

Future Plans:

• Remaining Solarisation Tenders: 5,550 MW farmland solarisation plan to be floated soon
• Expected Renewable Energy Growth: 20% increase in generation over the next five years

Maharashtra's renewable energy currently accounts for 17% of the state's total energy mix, and with these initiatives, the state is poised to become a leader in solar energy production in India.