Maharashtra eyes tariff cap of around US$0.040/kWh for new PV tender

Facebook
Twitter
LinkedIn
Reddit
Email
(Image credit: Jeremie R / Flickr)

India’s Maharashtra state has launched a process to procure a major slice of grid-linked solar power, pushing for low prices in line with earlier tenders this year.

This week, electricity distributor Maharashtra State Electricity Distribution Company Limited (MSDECL) shared a notice inviting online bidders for up to 500MW in grid-connected PV projects.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The reverse e-tender, open until 17 September, will be used to hand out 25-year power purchase agreements (PPAs) with MSDECL among winning projects.

Bids will require bank guarantees of INR1.4 million/MW (US$19,497/MW) and will face a ceiling price of INR2.8/kWh (around US$0.039/kWh), the new tender documents show.

The tariff cap falls below bid prices at a tender held earlier this year in 116-million-inhabitant Maharashtra, India’s most second populous state and the home of the city of Mumbai.

In May, the state recorded tariffs of INR2.87-2.91/kWh (around US$0.041/kWh, based on exchange rates at the time) for a 250MW auction, which drew bids from Tata Power and others.

Speaking to PV Tech at the time, Vinay Rustagi, managing director of consultancy firm Bridge to India, conveyed his “surprise” at what he described as “aggressive” tariffs.

“This is a challenging site – relative lower irradiation, forest land, difficult access – and has high solar park charges. There was limited bidding interest,” Rustagi added.

The new tender’s INR2.8/kWh tariff cap also lies in the region of the INR2.71/2.72kWh and INR2.74-2.75/kWh average bids recorded at Maharashtra’s two earlier 1GW state solar auctions, held in May 2018 and February 2019.

Maharashtra’s solar tendering efforts come as the Indian industry heads – if predictions by Fitch Solutions come to pass – towards a boom between 2018 (26GW) to 2028 (105.9GW).

See here for more information on Maharashtra's new solar tender

Read Next

August 28, 2025
Indian solar manufacturing firm INA Solar has broken ground on its fourth 4.5GW cell production plant in Narmadapuram, Madhya Pradesh.
August 28, 2025
JinkoSolar has sold 41.8GW of PV modules in the first half of the year, despite growing financial losses for its manufacturing subsidiary.
August 26, 2025
Daqo New Energy has posted gross losses of US$81.4 million in Q2 2025, up from losses of US$81.5 million in Q1.
August 26, 2025
Jakson Engineers is investing over INR80 billion (US$912.5 million) to set up a 6GW integrated solar module, cell, and wafer plant.
August 26, 2025
India installed 14.3GW of new utility-scale solar capacity in the first half (H1) of 2025, marking a 49% increase year-on-year.
August 26, 2025
The Australian Government’s CER approved 56 new power stations, with 797MW of renewable energy capacity, in July this year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines