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The report “Maharashtra’s Energy Transition – A ₹75,000 cr. opportunity” by research group Climate Risk Horizons suggests that the state government can save thousands of crores through certain measures.
Surplus electricity generation capacity, air pollution regulations and cheap renewable energy offer Maharashtra an opportunity to save Rs.16,000 cr. in 5 years, and over Rs.75,000 cr. in the coming decade, says the report.
As one of India’s most advanced industrial states, Maharashtra has been making steady progress towards a clean energy transition through solar agricultural feeders, solarisation of diesel pumps and procurement of new solar power through competitive bidding processes. However, as this analysis will show, there are several win-win measures that the state government and the state discom MSEDCL can take to accelerate the energy transition while delivering public benefits in terms of lower priced electricity and reduced air pollution.
Maharashtra, like the rest of India, is already facing the financial impacts of a changing climate.
Maharashtra also has one of the largest coal power fleets in the country, with 9.75 GW of coal power operated by the state-owned Mahagenco, in addition to 11.58 GW of privately owned coal plants and 3.64 GW operated by NTPC.
Retiring 4,020 MW of coal power units over 20 years of age and replacing their scheduled generation with new renewable energy would save over Rs. 10,000 crores over five years. this can be achieved in two ways suggested in the report
Surplus generation capacity, cheap renewables and an air pollution crisis combine to offer Maharashtra the opportunity to be a leader in the energy transition.