Maharashtra govt approves setting up of 150-Mw solar project in Dhule

The Maharashtra government plans to tap solar energy more aggressively as part of its effort to free the state of load shedding by 2012.

The state Cabinet on Friday approved Maharashtra State Power Generation Co Ltd’s (MahaGenco’s) plan to develop a 150-megawatt (Mw) of photovoltaic-based solar project in Dhule district.

The project entails an investment of Rs 1,987 crore. Of this, the sate government would give 20 per cent, or Rs 397.4 crore, and the rest would be raised from financial institutions. The project would be commissioned before next April.

Chief Minister Prithviraj Chavan said, “This is the first such project being developed at a single site across the world. KfW (German government-owned development bank) would provide necessary funds. While the tariff fixed by the Maharashtra Electricity Regulatory Commission (MERC) for solar power is Rs 17.91 per unit, according to MahaGenco's calculations, it would be Rs 12.61 per unit for this project. The per Mw capital cost is estimated at Rs 11.5 crore.”

About 70 per cent of MahaGenco’s installed capacities of 9,900 Mw is from coal and the rest from hydro and gas.

The government is going for such big solar projects, as the state power regulator has ordered it to purchase fixed portion of renewable power. Last July, MERC had said of the six per cent renewable power purchase by MahaVitaran, solar would account for 0.25 per cent in 2010-11. The purchase of solar power has been fixed at 0.25 per cent of the total seven per cent for 2011-12, 0.25 per cent of the total eight per cent for 2012-13. It would be increased to 0.50 per cent of the total renewable power purchase of nine per cent in 2013-14, 2014-15 and 2015-16.

Chavan said MahaGenco had already entered into an agreement with state-run MahaVitaran for supply of power from the proposed Dhule project. Besides, MahaGenco has also struck similar deal with the BrihanMumbai Electric Supply and Transport.

MahaGenco is also developing a five-megawatt (Mw) solar project in the Vidarbha region.