ABHA SHUKLA, IAS

Maharashtra is leading India’s clean energy transition, leveraging solar, wind, and hydro-power to drive sustainable growth. The state is not only expanding its renewable energy footprint but also pioneering green hydrogen initiatives, with plans to establish a hydrogen valley and promote industrial adoption. As India accelerates its net-zero ambitions, Maharashtra is pushing policy reforms, strengthening industry collaborations, and investing in infrastructure to lead the way in sustainable energy innovation. ABHA SHUKLA, IAS, Additional Chief Secretary (Energy), Government of Maharashtra shared the state’s roadmap for a greener, selfreliant energy future in an exclusive interview with NISHA SAMANT, Senior Assistant Editor of Elets News Network (ENN).

As of 31st March 2024, Maharashtra ranked 5th in the country for renewable energy installed capacity with 17.53 GW installations having a share of 9.2%. Over the past six years, its renewable energy installed capacity has increased by 1.52 times by 2023-24, against the contraction of 0.04 times in the case of the non-renewable energy sector. Could you elaborate on the state’s strategies to further augment renewable capacities to meet future energy demands?


Maharashtra is the first state in India to prepare a detailed Energy Transition and Resource Adequacy (ETRA) blueprint, covering all the three aspects of energy i.e. energy generation, strengthening of transmission network and augmentation of distribution network. The state not only prepared an RA plan but also initiated implementation of this plan. The state demand is projected to grow at 6.4% CAGR over the next 10 years. and its peak energy demand is going to grow from 28000MW (in FY 2024-25) to 45000 MW (FY2029-30). Maharasthra will be adding an additional 45000 MW capacity under its energy portfolio comprising of 91% (36.5 GW) renewable energy capacity. This includes 16.6 GW of decentralized solar generation for agriculture sector, 11.4 GW utility scale solar projects, 2.8 GWh pump storage capacity, 4.3 GW hybrid RE, 1.3 GW hydro capacity, 1.5 GW FDRE and 6-8 GWh of battery storage.

The aforesaid capacity addition will increase the contribution of renewable energy in the overall energy basket from existing 13% to 52%. The Energy Transition plan will require an investment of INR 330-340k Crore by the year 2030, across Generation, Transmission and Distribution segments. 75% of this investment will happen within the state of Maharashtra, creating approximately 7 lakh jobs in the state.


The world’s largest ‘Agriculture Feeder Solarization’ project of distributed renewable energy is being implemented in Maharashtra. PM-KUSUM (C) which has been redesigned as MSKVY2.0 ( Mukhyamantri Saur Krishi Vahini Yojana) to suit our requirements, envisages commissioning of 16000 MW of feeder level solar plants by December 2026. These projects have been awarded to solar power developers under cluster-based approach. These projects have an implementation period of 18 months from the date of LoA. 475 MW capacity (435 feeders emanating from 95 substations) have been commissioned in a record time of less than nine months, benefitting more than 2 lakh farmers with daytime, uninterrupted, quality power supply. The first five projects under the scheme were inaugurated on 5th October 2024 by the Hon’ble Prime Minister of India, Shri Narendra Modi ji, at an inaugural function held in Pohradevi, District Washim.

The State Government is also focusing on providing new agriculture pump connections through off grid solar pumps to the agriculture consumers as against the usual practice of providing conventional pump connection on LT network. The objective of these efforts is to ensure that the agriculture power supply in the state is catered through green energy sources in the state. As on date, more than 4.63 Lakh solar agriculture pumps have been commissioned across the state. Maharashtra has installed highest number of off-grid agriculture solar pumps in the country till now. The state government is also aggressively promoting the installation of rooftop solar systems under PM Surya Ghar Muft Bijli Yojna. 1.37 Lakh rooftop solar systems with an installed capacity of 600 MW have been commissioned under this project till now. The total installed capacity under the rooftop solar segment across the state now stands at 3.1 GW. The State has also initiated ‘Saur Village’ program. In saur villages, entire energy need of the community is catered through rooftop solar installations. Solarisation of 8 such villages has been completed by now and it is work in progress in 92 villages.

The Government of India launched the National Green Hydrogen Mission to promote sustainable energy solutions. How is Maharashtra aligning this mission, and what specific policies or projects are being implemented to position the state as a hub for green hydrogen production and utilization?

Maharashtra, being one of India’s most industrialised states, is actively aligning with this mission to position itself as a hub for green hydrogen production and utilisation. It has announced its Green Hydrogen Policy on October 17, 2023. The policy aims to make the state a leader in green hydrogen production and use and to promote decarbonisation in industries. The objective of the Maharashtra State Green Hydrogen Policy is to establish at minimum 500 kilotons per annum of green hydrogen production capacity in the state by the year 2030 and make the state a leader in green hydrogen and its derivatives, promote export of green hydrogen and ensure energy enhancing safety.

The policy framework and strategic plan of green hydrogen focuses on the following five major aspects:

Infrastructure Development

  • Hydrogen Hubs: The state has planned to develop dedicated hydrogen hubs in key industrial clusters such as Mumbai, Pune, Nagpur, and Aurangabad. These hubs will focus on production, storage, and distribution of green hydrogen.
  • Port Infrastructure: The state is exploring the use of its ports, such as Jawaharlal Nehru Port Trust (JNPT), for the export of green hydrogen and its derivatives like ammonia.

Industry Collaboration and Investments

  • Public-Private Partnerships (PPPs): The state government has signed 7 MoUs worth INR 2,11,400 Crore for green hydrogen projects. The state is also collaborating with private companies, research institutions, and global players to set up green hydrogen projects. Companies like Reliance Industries, Tata Group, JSW and Adani Group have shown interest in investing in green hydrogen projects in Maharashtra
  • Pilot Projects: Several pilot projects are being initiated to demonstrate the feasibility of green hydrogen in sectors like transportation, refining, and fertilizers. The upcoming Hydrogen Valley in Pune will combine the complete hydrogen value chain from production to storage and transportation. This will enable local industries to focus on using hydrogen in their production process.

Research and Development

  • Innovation Centers: Maharashtra is establishing innovation centers and R&D facilities to advance green hydrogen technologies, improve efficiency, and reduce costs.
  • Skill Development: The state is focusing on skill development programs to create a workforce capable of supporting the green hydrogen economy.

Sectoral Integration

  • Transportation: The state is promoting the use of green hydrogen in public transportation, including buses and trucks, to reduce emissions in the transport sector.
  • Industries: Key industries such as refining, chemicals, and fertilizers are being encouraged to adopt green hydrogen as a feedstock or energy source.
  • Power Generation: Green hydrogen is being explored for use in gas turbines and fuel cells for power generation, especially in remote and off-grid areas.

The state demand has been projected to grow at a 6.4 per cent CAGR over the next 10 years, increasing its existing peak demand from 30 GW (FY2024-25) to 45 GW (FY2034-35).

To facilitate and integrate substantial private investments, such as the $34.67 billion commitment from JSW Group, Maharashtra is employing a multi-faceted approach to accelerate its green energy transition.

Incentives and Subsidies

  • Production subsidy: A subsidy of INR 50 per kg of green hydrogen that is blended with natural gas.
  • Tax/Duty/Charges exemptions: Land used for green hydrogen projects is exempt from local body tax, nonagricultural tax, and stamp duty. Electricity Duty 100% exemption for stand-alone projects for 10 years and 100% exemption for hydrid projects for 15 years. For anchor units 100% exemption in ED for 15 year is
    available.
  • Support for transportation projects: Support for hydrogen transportation projects and refuelling stations.
  • Subsidies for passenger vehicles: A capital cost subsidy of up to INR 60 lakh per vehicle for the first 500 green hydrogen fuel cell passenger vehicles.
  • Exemption from cross subsidy and surcharge: Projects are exempt from cross subsidy and surcharge.
  • Support for skilled manpower: A budget of INR 40 crore for 10 years to recruit, train, and develop skilled manpower.
  • Transmission wheeling charge relief: Transmission & wheeling charges 50% exemption for stand-alone projects for 10 years and 60% exemption for hydrid projects for 10 years. 100% exemption in transmission and wheeling charges for 20 years for the first three anchor units that produce green hydrogen.
  • Capital Subsidy for First three anchor units: 30% for the associated RE Project (plant and machinery)

The policy is effective until March 31, 2030. By implementing these policies and projects, Maharashtra aims to become a leading state in India for green hydrogen production and utilization, contributing to the country’s sustainable energy transition and economic growth. As mentioned earlier, the state government has signed 7 MoUs for green hydrogen projects, amounting to a total investment of ₹`2,76,300 crore which includes 1 MTPA MoU signed by NTPC Green Energy Limited (NGEL) total of 12 projects with 1,041 KTPA capacity have been registered in Maharashtra with MEDA which will get commissioned in due course of time.

Integrating renewable energy into the existing power grid presents challenges such as intermittency and grid stability. What measures are being taken by the Maharashtra Energy Department to enhance grid infrastructure and ensure a seamless incorporation of renewable energy sources?

Maharashtra Energy Department is implementing several measures to enhance grid infrastructure and facilitate the seamless integration of renewable energy sources. Key initiatives include:

  1. Grid Modernization: Upgrading the existing grid infrastructure to handle the variability and decentralized nature of renewable energy sources like solar and wind. This includes the deployment of smart grid technologies, advanced metering infrastructure, and real-time monitoring systems through centralized command center.
  2. Energy Storage Solutions: Investing in energy storage systems, such as battery storage and pump storage to store excess energy generated from renewable sources and release it during periods of high demand or low generation. This will help in balancing the grid and ensuring a stable power supply. The State Government has framed a policy for development of Pumped Storage Projects (PSPs), PSPs cum LIS and co-located PSP-Solar/Other Renewable Energy Hybrid Projects through Public Private Partnership vide GR dt 20.12.2023.
  3. Green energy corridor Projects: Considering the huge renewable energy potential paving its way in the state, CEA has been requested for inclusion of 141 schemes with total cost of `2,44,490 crore under green energy corridor scheme (GEC)- III of government of India.
  4. Strengthening Transmission and distribution Networks: Under Energy Transition Plan, expanding and reinforcing the transmission network to accommodate the increased flow of renewable energy has been planned. This involves building new transmission lines and upgrading existing ones to reduce congestion and losses. Under MSKVY 2.0, system strengthening works worth Rs. 2,388 Crore are being carried out, with special focus on rural distribution system where distributed solar projects are being developed. The scheme is being funded by Asian Development Bank. The scope of work includes new substations, Additional/Augmentation of Power Transformers, New 33 KV substations, upgradation of 33 KV and 11 KV substations etc.
  5. Demand Response Programs: Implementing demand response programs to adjust consumer electricity usage in response to supply conditions. This will help in managing peak loads and integrating intermittent renewable energy sources more effectively. State has taken up a program for installation of smart meters to all its consumers ( >2.5 cr) as well as emphasizing on system metering.
  6. Public-Private Partnerships: The state government is encouraging public-private partnerships to leverage private sector expertise and investment in grid infrastructure projects. This will help in accelerating the deployment of advanced grid technologies and renewable energy integration.
  7. Capacity Building and Training: Providing training and capacity-building programs for utility staff and other stakeholders, specifically in rural area to enhance their skills in managing modern grid systems and renewable energy integration.
  8. Pilot Projects and Demonstrations: Maharashtra government is also encouraging pilot projects and demonstration initiatives to test and showcase new technologies and approaches for grid management and renewable energy integration.

These measures collectively aim to create a robust, flexible, and resilient grid infrastructure capable of supporting Maharashtra’s transition to a sustainable energy future.

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In January 2025, JSW Group announced an investment of approximately $34.67 billion in Maharashtra, targeting sectors like electric vehicles, batteries, steel, and green energy. How does the state plan to facilitate and integrate such substantial private investments to accelerate its green energy transition?

Maharashtra’s energy transition plan resource adequacy plan envisaged 70% investment from private sector. JSW is one of the investors in green energy in Maharashtra by investing in Solar, Wind and Pump Storage project and predominately this supply is for Maharashtra.

Further, to facilitate and integrate substantial private investments like the $34.67 billion commitment, Maharashtra is likely to employ a multi-faceted approach to accelerate its green energy transition. Here are some key strategies the state might adopt:

1. Policy Frameworks and Incentives

  • Streamlined Approvals: The state government has established a single-window clearance system to expedite the approval process for green energy projects, reducing delays.
  • Financial Incentives: Offering subsidies, tax breaks, and low-interest loans to companies investing in green energy projects are making such investments more attractive.
  • Renewable Purchase Obligations (RPOs): RPO obligations have been envisaged by the Central Government and state regulator in various segments such as solar, hydro, distributed Renewable energy, BESS and Wind energy. The RPO mandated ranges from 29.91% (FY2024-25) to 43.33% (FY2029-30) but we will be exceeding these targets.

2. Infrastructure Development

  • Grid Modernization: Upgrading the electrical grid to handle the intermittent nature of renewable energy sources like solar and wind is crucial. This includes investing in smart grid technologies and energy storage solutions. Load flow studies have been taken up by the State Govt through M/s PRDC to study the grid stability especially due to DRE and accordingly system strengthening works have been taken at Transmission as well as at Distribution end which includes substation augmentation, corridor strengthening etc. Initiatives like substation monitoring system, centralized command centre etc have been deployed by the state power distribution utility.
  • Industrial Clusters: Specialized industrial parks or clusters focused on electric vehicles, battery manufacturing, and green energy are also being developed which is also providing the necessary infrastructure and economies of scale.

3. Public-private Partnerships (PPPs)

  • Collaborative Projects: The state has entered PPPs to share the risks and rewards of large-scale green energy projects. Payment security mechanism has been established to gain the confidence of the investors especially in DRE under deployment through MSKVY2.0 scheme.
  • Skill Development: Collaborating with private companies to establish training centers and educational programs to build a skilled workforce for the green energy sector. Under PM Surya Ghar Yojana, the state has developed capacity building program for training 41,000 “SuryaMitra” in rural area. The program also covers skill upliftment of Technical/ ITI students (~85,000).

4. Regulatory Support

  • Clear Regulations: RPO and Green Open Access regulations have been notified by the State Regulator for promotion of the green energy sector to reduce uncertainty and attract more investors.
  • Environmental Clearances: Processes have been simplified for obtaining environmental clearances while ensuring sustainable practices to speed up project implementation.

5. Community Engagement and Awareness

  • Stakeholder Involvement: Engaging local communities and stakeholders in the planning and implementation of green energy projects has ensured smoother execution and greater public support. Under MSVKY 2.0 and Solar Village Program regular meetings were held with the beneficiaries for sharing the benefits of the solar scheme and the community support required for successful implementation of these schemes.
  • Awareness Campaigns: Running awareness campaigns including provisions like assured annual income ( Rs 1.25 lakh/hectare) to the farmers and incentives in the form of social grants to the Gram Panchayats under MSKVY2.0 scheme has built a favorable environment for accelerating project progress and investments. Publicity through local newspaper, information hoarding at local Gram panchayat, and Local Utility offices has created a lot of interest in the consumers and developers to participate in distributed solar projects.

6. Monitoring and Evaluation

  • Performance Metrics: Establishing clear performance metrics and regular monitoring is ensuring that projects are on track and delivering the expected benefits. As such 460 MW capacity has been established through Distributed RE under MSKVY2.0 within a record of time of 9 months of its launched.
  • Feedback Mechanisms: Creating channels for feedback from investors and other stakeholders has helped the state government to make necessary adjustments to policies and support mechanisms. Regular review meetings with the vendors, project developers and government officials has helped to address the local issues and achieve the project milestones.

By leveraging these strategies, effective integration of RE projects and facilitate substantial private investments, thereby accelerating its green energy transition has become possible in the state which is now a leader in sustainable development in the country. Under MSKVY 2.0, distributed solar projects worth 16.6 GW were awarded attracting private investment of Rs. 66,400 Crore and employment generation of 60,000 in the rural sector.

Land acquisition has been a significant hurdle in the expansion of renewable energy projects in Maharashtra, as highlighted by recent disputes affecting solar developments. What strategies are being implemented to resolve land acquisition issues and foster community support for renewable energy projects?

Land acquisition has indeed been a critical challenge for renewable energy projects in Maharashtra, as in many other regions. To address these issues and foster community support, several strategies are being implemented:

1. Transparent and Inclusive Consultation Processes

  • Stakeholder Engagement: Developers and government authorities are increasingly engaging with local communities, landowners, and other stakeholders early in the project planning process. This includes public consultations, town hall meetings, and discussions to address concerns and build trust.
  • Clear Communication: Providing publicity about the project’s benefits, land acquisition processes, and compensation mechanisms is helping to reduce misunderstandings and resistance.

2. Community Benefit Sharing

  • Revenue Sharing Models: State regulator has come out with the policy for virtual net metering wherein consumer can install renewable energy at different locations through aggregator mode with suitable revenue sharing model. This creates a sense of ownership and long-term benefits for the community.
  • Local Employment and Skill Development: Prioritizing local hiring and providing skill development programs has helped to ensure that communities benefit economically from the projects.
  • Incentives for local bodies: Under MSKVY 2.0, Social Development Grant to Gram Panchayat @Rs.5 Lakh per year for first 3 years was provided where the distributed solar projects are being developed.

3. Establishment land bank portal and facilitating statutory clearances: Land bank portal has been established where under more than 38,000 acres of government land has been identified for taking up the DRE projects under MKSY2.0 scheme in the state. This is accompanied by all the NoCs from various government departments which is facilitating execution of projects under the scheme in an accelerated manner. Moreover, simplifying and expediting land acquisition and project approval processes are also helping to reduce delays and uncertainties. This was done in a record time of 3 months using PM Gatishakti portal, Maharashtra Bhulekh portal & MSEDCL land portal.

4. Rooftop Solar and Small-Scale Projects: Encouraging decentralized renewable energy projects, such as rooftop solar installations and small-scale wind farms, reduces the need for large-scale land acquisition and distributes benefits more widely. Solar village, rooftop solar for all government offices are such initiatives which have been taken in the state.

By implementing these strategies, Maharashtra aims to balance the need for renewable energy expansion with the rights and interests of local communities, fostering a more inclusive and sustainable approach to energy development and avoid any delay in land acquisition.

 

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