Maharashtra Power Distribution Enhancement Program to Facilitate Agricultural Solarization

Proposed

India electricity sector and national roadmap to combat climate change. India is the third largest producer of electricity in the world, with the total electricity generation in the country for fiscal year FY2024 being 1,949 TWh. The country has the third largest Greenhouse gas (GHG) emissions i.e. 3943.26 million tons of carbon dioxide equivalent (Mton CO2eq). India with an enormous fossil fuel-based energy basket and with 7.33% of global share of carbon emissions, has set up ambitious targets to support global efforts to combat climate change.As per the updated Nationally Determined Contributions (NDCs), India stands committed to reduce Emissions Intensity of its gross domestic product by 45% by 2030, from 2005 level and achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. In this regard, the Government of India has launched several measures to promote renewable energy sources e.g. PM-KUSUM (Agriculture pump solarization), PM-Surya Ghar Muft Bijli Yojana (Rooftop solar in residential rooftops), National Green Hydrogen Mission (NGHM), notifying renewable energy sources (RES) purchase obligation for Discoms, launching green electricity markets (Day ahead and Term ahead), 20% ethanol blending in Petrol by 2025, new auction design for promotion of wind energy and Green Energy Corridor for evacuation of renewable energy.Maharashtra economy, electricity sector and state's decarbonization roadmap. Maharashtra is India's state with the largest economy, third largest by land area and the fifth most populated state. About half of the state population are dependent on agriculture as occupation. The agriculture sector, which is still heavily rain-fed dependent, contributes about 13.6% to the state's GDP and needs technification and modernization.The peak electricity demand of the state for FY 2023 was about 31 GW of which 29 GW was met, leading to peak deficit of 6.8% . The state has installed generation capacity of 47 GW (29 GW thermal power, 1 GW nuclear power, 3 GW hydro power and 14 GW other renewable energy). In terms of property, 22 GW are owned by the public sector (8 GW Central Government and 14 GW State Government) and 25 GW are owned by the private sector (of which 13 GW is attributed to RES). To support India objectives under NDCs, the state aims to set decarbonisation targets to maintain focus on sustainability. In this regard, the state intends to achieve carbon emission intensity of 0.16 (Kg CO2/PPP $GDP) in FY2028 which is 45% reduction from 2005 levels in line with India NDC target. The state also targets to increase the renewable energy share to 45% in FY2028 and 50% in FY2030, from 35% in FY2023.Further the Maharashtra Power Sector Vision 2030 aims to develop 'A sustainable and forward-looking power sector providing high quality customer service and fostering the socio-economic growth of Maharashtra . To achieve this the state will (i) make power supply safe, cost effective and reliable, (ii) enhance customer service, (iii) digitalize the power sector and bring efficiency in operations, (iv) make power sector operations financially sustainable and (v)increase clean energy adoption in a sustainable manner. The Vision 2030 identifies the three big global trends that will impact the power sector will be Decarbonization (renewable energy adoption), Decentralization (solar rooftop and energy storage) and Digitalization (IT-OT, AI, machine learning etc. to drive operating efficiencies and aided by digital the renewable energy technologies and distributed energy sources will gain ground).