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Maharashtra To Add 5 GW Of Solar Capacity By 2020 for Captive Consumption

In a huge push for renewable power,Maharashtra will have an installed capacity of around 22,000 MW in the non-conventional energy sector by 2020. This includes 14,400 MW proposed in the newrenewable energy policy to be placed before the state cabinet next week for approval, and the existing 6,155 MW capacity in the sector.

However, to reduce the tariff impact on consumers due to the higher costs of this green energy compared to conventional coal-based thermal power plants, the state government is looking at encouraging industries to develop around 8,500 MW of captive solar and wind energy projects for their own use.

Source: DNA

SNP Insights

The thrust on captive capacity addition makes the preposition more realistic, as the cost of generation from solar would not be much different from the per unit cost of grid supplied power. In fact, the lowest tariff bided for solar power so far in the nation is INR 5.71/ unit, which is actually cheaper than grid feed power for the commercial/ industrial segment consumers of the state.