500 MW AC Solar Tender Under PM-KUSUM Scheme In India

MSEDCL Launches Tender For 500 MW AC Solar Power To Solarize Agricultural Feeders In Maharashtra, Capping Bids At INR 3.10/kWh
MSEDCL says solarization of agricultural feeders will help reduce distribution losses. (Illustrative Photo; Photo Credit: Dinesh Hukmani/Shutterstock.com)
MSEDCL says solarization of agricultural feeders will help reduce distribution losses. (Illustrative Photo; Photo Credit: Dinesh Hukmani/Shutterstock.com)
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  • MSEDCL is soliciting bids for 500 MW AC solar PV capacity to be located within Maharashtra
  • It has capped tariff at INR 3.10/kWh to award capacity under component C of the PM-KUSUM Scheme
  • Solar power systems can be installed on barren or uncultivable land; agricultural land will be admitted if the array is installed in stilt manner

Maharashtra utility Maharashtra State Electricity Distribution Co Ltd (MSEDCL) is seeking to procure power from a cumulative 500 MW AC solar PV capacity under the country's PM-KUSUM Scheme with an aim to solarize agricultural feeders in the state.

As an implementing agency of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) Scheme, MSEDCL has launched this tender under component C of the same under RESCO mode. This component targets to install a total 11.2 GW solar PV capacity through 1.5 million grid connected solar powered agricultural pumps by individual farmers (see MNRE Revises Solar Target Under PM-KUSUM Scheme).

The idea is for solar power generated to be consumed for agriculture load at local level which will then reduce distribution losses.

Selections will be made on the basis of lowest tariff offered for supply of requisite solar power for 25 years that's capped at INR 3.10/kWh. Winner will get central financial assistance (CFA) at 30% of the estimated cost of installation of the solar project. MSEDCL will procure power for a period of 25 years.

Solar systems can be installed only on barren or uncultivable land with agricultural land allowed only when these are installed in stilt manner so farmers can continue to work.

MSEDCL launched the tender on January 11, 2023 and will accept bids till February 13, 2023, as per tender notice.

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