The joint venture (JV) between Maharashtra Power Generation Company (MAHAGENCO) and SJVN has targeted developing 735 MW of renewable energy projects in the first phase of a 5 GW clean energy push in the state.

In the first phase, the JV will develop the 125 MW Ghatghar Phase 2 pumped storage project, the 105 MW Irai floating solar project, and 505 MW of floating solar projects on reservoirs.

The Maharashtra government approved a proposal last month to establish a JV with SJVN for developing 5 GW of renewable energy projects in the state. These projects include pumped storage, green hydrogen integrated with a wind-solar hybrid, floating solar with storage, and battery energy storage.

SJVN will hold an equity stake of 51%, and MAHAGENCO will hold 49% in the JV.

The debt-equity ratio for the JV will be 70:30 or 80:20, depending on the commercial viability of the respective renewable energy projects. MAHAGENCO will use its own resources for the equity contribution.

The CEO of the JV will be nominated by SJVN, and the CFO by MAHAGENCO. The COO will be appointed alternately by the two companies.

Other projects identified as part of a memorandum of understanding reached in 2023 will be considered in subsequent phases.

Maharashtra has set a target to generate 50% of its power from renewable energy sources by 2030 and 75% by 2047. MAHAGENCO has an installed capacity of 13,880 MW, of which 10,200 MW (73.48%) is coal-based thermal power. Renewables account for 428 MW (3.08%) of its installed capacity.

In September, SJVN Green Energy, a subsidiary of SJVN, invited bids for the engineering, procurement, and construction (EPC) of 733 MW solar projects in Maharashtra under the Mukhyamantri Saur Krushi Vahini Yojana 2.0.

In June, it floated an EPC tender for 951 MW of solar projects under the same program.