Maharashtra power plan rattles solar sector

When Maharashtra decided to change how it prices power, the idea was simple: Prepare for an expected burst in solar power in the coming years with a model for its efficient use. However, its solution has worried the industry, which fears disruption in the way it does business and raises the cost of power in the country's fifth-largest solar power state.

- - Nehal Chaliawala

State-run power distributor Maharashtra State Electricity Corp. Ltd Distribution (MSEDCL) has proposed pricing power generated from 9 am to 5 pm at the lowest. The industry says this move will end power banking, in which excess power is absorbed by the distribution company and resupplied later when it's needed. This will force power producers to rework contracts and raise power procurement costs.

Currently, the time-of-day (TOD) structure is such that power banked by solar producers during the peak generation hours of 9am-5pm can be accessed at any time except during the 6pm-10pm window when pricing is at its peak.

Under the new system, banked power would only be allowed to be drawn back during the 9am-5pm windowwhen solar power is abundant anyway-making banking redundant.

MSEDCL has made the proposal in its FY26-FY30 tariff plan submitted to the Maharashtra Electricity Regulatory Commission (MERC). The commission has yet to decide on the matter.