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MSEDCL to Solarise Lift Irrigation Schemes in Maharashtra

Maharashtra State Electricity Distribution Co. Ltd. gets approval from Maharashtra Electricity Regulatory Commission for the long term procurement of 1,052 MW of solar power to serve lift irrigation schemes in Maharashtra.

September 24, 2024. By Mrinmoy Dey

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) filed a petition with Maharashtra Electricity Regulatory Commission (MERC) seeking approval for the long-term procurement of 1,052 MW of solar power to serve Lift Irrigation Schemes (LIS) in the state.

These solar projects will be set up on land owned by the Water Resource Department (WRD), ensuring a sustainable electricity supply for LIS, which primarily serve agricultural needs.

Under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0), Maharashtra's solarisation initiative aims to reduce government subsidies and reliance on conventional energy while lowering carbon emissions. Though LIS were not initially part of the solarisation plan, the government introduced a scheme enabling WRD to provide land for solar projects dedicated to these consumers.

The proposed model will generate excess solar power during the day to offset higher costs during non-solar peak hours. Developers will be incentivised with financial assistance of INR 3.2 crore per MW of solar capacity. The procurement will be conducted through competitive bidding, with an initial target of 800 MW, covering government-operated LIS. The scheme may later extend to LIS operated by cooperatives or other entities that can provide the necessary land.

To meet LIS electricity demands, MSEDCL estimates a required capacity of 590.75 MW but proposes 1,052 MW to account for degradation and higher evening costs. The excess power generated will help offset overall costs without adversely affecting consumers.

MSEDCL began the bidding process in March 2024. The Commission granted approval for the procurement of 1,052 MW of solar power, with further evaluation of the scheme’s details to be considered in future proceedings.
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