‘Clean energy transition could save Maharashtra ₹75K-crore in 10 years’

MUMBAI: According to a new report published on Thursday, Maharashtra could save ₹75,000 crore in the next decade by implementing three steps in its energy sector: shutting down old coal power plants by 2022, halting the construction of a new unit at the Bhusawal thermal power plant (which is in surplus to the state’s requirements) and replacing coal contracts with cleaner alternatives over the next 10 years.

At the crux of the report – Maharashtra’s Energy Transition: A ₹75,000 crore Savings Opportunity – by research group Climate Risk Horizons (CRH), is a strategic move away from the polluting coal-based power, which is set to get more expensive in coming years. “Recent tariffs discovered for solar and wind in India have been in the ₹2–3/kwh ((kilowatt hour) range... Against a ₹3/kwh renewable energy tariff benchmark, any power plant with a tariff above ₹4/kwh is uncompetitive... The long-term savings potential if Maharashtra gradually phased out power purchases from coal plants charging tariffs above ₹4/kwh and replaced that volume of electricity with renewable power at ₹3/kwh (or lower) is obviously significant,” the report noted.

Ashish Fernandes, lead analyst at CRH, and corresponding author of the report, said that as the government explores ways to cut costs and improve financial health, retiring old coal plants should be part of the mix.

“A judicious retirement of these assets and incentivising their replacement with cheaper renewable energy will help the state build back better,” he said.