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Maharashtra has become power surplus and is prepared to meet the rising electricity demand from industry and data centres. The state's electricity tariffs will remain stable while increasing the share of renewable energy. Industrial power consumption has grown 23% over the last three years, and the state accounts for nearly 60% of India's data centre capacity, with plans for an additional 4,500 MW in the next five years. Maharashtra aims to source over half of its electricity from renewables by 2030 and enhance grid stability through battery and pumped storage projects.
Maharashtra is now power surplus and ready to handle increasing electricity demand from both industrial sectors and data centres, Chief Minister Devendra Fadnavis informed the assembly earlier this week. He assured that electricity tariffs would remain stable while the share of green energy continues to rise. Advertisement
The state electricity distribution company, Mahavitaran, has grown into one of Asia's largest utilities, with annual revenues surpassing INR 1 lakh crore. Fadnavis noted that Maharashtra has revised its Time-of-Day (ToD) tariff structure to reflect changing consumption patterns driven by solar power. Previously, incentives were provided for electricity use between midnight and 6 am. With abundant solar generation from 9 am to 5 pm, consumers now receive up to 25% concession during these hours.
Highlighting industrial growth, Fadnavis stated that power consumption in the sector has risen by 23% over the past three years. Regarding data centres, Maharashtra hosts nearly 60% of India's total capacity and is expected to expand further. The state has already planned for an additional 4,500 MW requirement over the next five years and has ensured adequate resource availability to meet this demand.
Fadnavis also outlined the state's roadmap for green energy, aiming for 52% of electricity from renewable sources by 2030 and 65% by 2035. Large-scale battery storage and pumped storage projects are being developed to maintain grid stability. He emphasized that Maharashtra will sustain a stable tariff regime for the next five years while ensuring reliable and affordable power supply across sectors.
Addressing concerns from some solar power producers about reduced benefits from captive generation, the CM suggested adopting battery storage systems. Such systems would allow consumers to access cheaper electricity round-the-clock, and the government is actively encouraging these technologies.
On tariff-related issues, Fadnavis explained that the Maharashtra Electricity Regulatory Commission had earlier made calculation errors in power procurement estimates, which were corrected after the state government highlighted them. Without these corrections, the state could have faced significant financial stress and higher tariffs in the future. Currently, industrial electricity tariffs in Maharashtra stand at INR 8.32 per unit, which is competitive compared to other states, with expectations of further reductions in the coming years to attract more investment.
Source PTI
FAQ
Q1: What is the current power situation in Maharashtra?
A1: Maharashtra is currently power surplus and has adequate capacity to meet the growing electricity demand from industrial sectors, data centres, and other commercial users. This ensures reliable supply even as consumption continues to rise.
Q2: Will electricity tariffs change in the state?
A2: No, electricity tariffs are expected to remain stable for at least the next five years. The state government has assured that industrial and commercial consumers will benefit from predictable pricing while renewable energy integration continues.
Q3: How has industrial power consumption changed recently?
A3: Industrial power consumption in Maharashtra has increased by 23% over the past three years, reflecting robust industrial growth, expansion of manufacturing units, and rising energy needs of data centres and other commercial facilities.
Q4: What role does Maharashtra play in India's data centre capacity?
A4: Maharashtra currently hosts nearly 60% of India's total data centre capacity and is preparing to meet an additional demand of 4,500 MW over the next five years. This positions the state as a key hub for cloud services and IT infrastructure.
Q5: What is the state's renewable energy target?
A5: Maharashtra aims to source 52% of its electricity from renewable energy by 2030, increasing to 65% by 2035. This includes solar, wind, and other green energy sources to reduce carbon emissions and enhance sustainable energy use.
Q6: How is the state ensuring grid stability with higher renewable energy?
A6: The government is investing in large-scale battery storage and pumped storage projects, which will balance supply and demand, store excess renewable energy, and provide round-the-clock electricity, ensuring grid reliability despite fluctuating renewable generation.
Q7: What measures are in place for time-of-day electricity pricing?
A7: Maharashtra has revised its Time-of-Day (ToD) tariff structure to reflect higher solar generation between 9 am and 5 pm. Consumers now receive up to a 25% concession during these hours, promoting efficient consumption and reducing overall electricity costs.
Q8: How is Maharashtra addressing concerns of solar power producers?
A8: The state encourages solar power producers and industrial consumers to adopt battery storage systems. This allows them to access cheaper electricity around the clock, ensuring that benefits from renewable energy are maximized even when solar generation is low.
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