The Maharashtra Government has approved proposals to develop two solar projects with 577 MW capacity. The Maharashtra State Power Generation Corporation Limited (MAHAGENCO) is expected to develop these projects.
The cabinet also approved fundraising for the two solar projects with 190 MW and 390 MW capacity, respectively. The projects will be developed on an engineering, procurement, and construction (EPC) basis.
The state cabinet has approved a loan of ₹15.64 billion (~$212.2 million) at an annual interest rate of 0.05% from Germany’s KfW Bank for the 390 MW solar project; MAHAGENCO must repay the loan in 12 years.
Of the 390 MW, 170 MW is expected to be developed in the Washim district, 145 MW in the Chandrapur district, and 75 MW at Yavatmal district.
In addition to the loan, the state government would raise ₹3.64 billion (~$49.4 million) from internal sources or through loans from financial institutions.
Similarly, the cabinet also approved a project financing agreement for the 187 MW solar project and a loan of ₹5.88 billion (~$79.8 million) from KfW Bank. In addition to the loan, the government would raise ₹1.58 billion (~$21.4 million) from internal sources or through loans from financial institutions.
Of the 187 MW capacity, 50 MW is proposed in Osmanabad district, 60 MW at Latur, 20 MW at Bhusawal, 25 MW at Dhule, 12 MW each at Parli and Koradi, and 8 MW at Nashik.
According to Mercom’s India Solar Project Tracker, Maharashtra has 1.97 GW of operational solar capacity, and 1.75 GW of solar capacity is currently in the pipeline.
In 2019, the state issued a draft policy announcing its renewable purchase obligation (RPO) from 2020 to 2025. The solar RPO targets mentioned in the policy draft will start at 4.5%, going up to 13.5% over the next five years. A total solar capacity of 12,500 MW would be required by 2024-25 to achieve the target. The government has been floated tenders to procure solar and ensure they meet the RPO target.
In August 2021, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) invited bids for 487 MW of decentralized solar projects of 500 kW to 2 MW capacity under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program in Maharashtra. Earlier this year, MSEDCL invited bids for 500 MW of distributed solar projects (500 kW to 2 MW) under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan program.
MSEDCL also invited bids to procure 1,300 MW solar power from projects connected at distribution networks (11/22 kV) in 29 districts in Maharashtra. The projects will be developed under the ‘Mukhyamantri Saur Krishi Vahini Yojana.’