MSEDCL to Buy Cheapest Solar Power in the Country

MSEDCL issued tenders to buy 1,020 solar power from private producers. The two companies that agreed to supply power are JLTM Energy and Mahoba Solar. Both agreed to supply 20 MW and 200 MW at the rate of Rs 2.71 per unit.

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has entered into an agreement with two private utility firms who would supply a public sector undertaking the cheapest power in the county. While as four other companies would supply power at a rate of 1 paisa higher than the minimum rate.

Earlier MSEDCL issued tenders to buy 1,020 solar power from private producers. The two companies that agreed to supply power are JLTM Energy and Mahoba Solar. Both agreed to supply 20 MW and 200 MW at the rate of Rs 2.71 per unit.

Similarly, other companies such like Renew Solar Power (250 MW), Acme Solar Holdings (250 MW), Tata Power Renewable Energy (150 MW) and Ajure Power India (150 MW) quoted Rs 2.72 per unit.

As approved by Maharashtra Electricity Regulatory Commission (MERC) the average power purchase cost of discoms for the year 2017-18 is Rs 4.01 per unit. However, a decade ago the solar power cost in the state was Rs 18 per unit, which would make MSEDCL reluctant to buy it.

The pursuit for buying solar power would not stop here. MSEDCL is planning to purchase another 1,000 MW in near future. Public sector undertaking has already identified 218 talukas to setup solar power plants in the state. The range of capacity in each taluka is between 2 MW and 10 MW and the maximum capacity in a district should not exceed 50 MW.