MSEDCL floats solar bids for 6,500 MW, signs pacts for only 527 MW

The Maha Vikas Aghadi (MVA) government has recently approved a renewable energy policy under which about 13,000 MW capacity is to be added through solar. Going by the response to Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) in the last three years, this seems to be a difficult target.
According to MSEDCL’s submission before Maharashtra Electricity Regulatory Commission (MERC), the company had floated bids for 6,500 MW solar power in three years, but received bids for only 1,873 MW and it was able to sign agreements for only 527 MW, which is less than 10% of the sought capacity.
MSEDCL has attributed the poor response to the impracticality of the Rs3.30 per unit tariff ceiling and unavailability of low-cost land in the state.
o solve the problem of land, the discom is now developing a web portal through which farmers interested in leasing their lands to MSEDCL for solar plants can register themselves. If MSEDCL provides the land to the solar plant developer, then the tariff will be capped at Rs3.11 per unit and the commissioning period will be reduced from 12 months to nine.
MERC has agreed to MSEDCL’s request for floating open tenders under MSKVY, which involves continuous rebidding until the target is achieved.