Mumbai: Devendra Fadnavis on Wednesday informed the Maharashtra Legislative Assembly that electricity tariffs in the state will gradually decline over the next five years as part of the government’s power sector reforms and long-term energy planning.
Annual Tariff Reductions Planned Until 2030
Replying to the discussion on the state budget, Fadnavis said electricity bills for consumers in Maharashtra had earlier been increasing by around nine per cent annually until 2025. However, the government has now fixed tariffs for the next five years in a manner that will reduce bills by about 1.32 per cent every year until 2030.
The Chief Minister said the reduction has been made possible due to power purchase agreements signed with various electricity generation companies, which will allow the state to procure cheaper electricity. As a result, the state is expected to save nearly Rs 66,000 crore in electricity generation costs over the coming years.
Industries and Households Both Set to Benefit
He added that the reforms will benefit both industries and households. Electricity tariffs for the industrial sector are expected to decline by around eight per cent, while household power bills could fall by as much as 26 per cent by 2030.
Highlighting the performance of the state’s power sector, Fadnavis said Maharashtra has received 55 national and international awards related to electricity in the last two years. He credited the recognition to the reforms and initiatives undertaken by the state’s energy department.
Ambitious Renewable Energy Targets Set for 2030 and 2035
Emphasising the government’s focus on clean energy, the Chief Minister said the state aims to generate 52 per cent of its electricity from non-conventional sources by 2030 and 65 per cent by 2035. To address the challenge of storing renewable power, the government is also promoting battery-based storage technology that will allow green energy to be stored and supplied round the clock.
Fadnavis said the state has prepared a dedicated policy for energy storage, with a budgetary allocation of Rs 1,650 crore and expected private investment of around Rs 3.12 lakh crore in the sector.
He added that Maharashtra has set a target to store up to one lakh megawatt-hours of energy per day in the future, enabling the state to overcome the limitations associated with intermittent renewable power generation.
Power Generation Capacity to Nearly Double by 2030
The Chief Minister also said the state’s installed power generation capacity, currently about 45,000 MW, is expected to increase to around 82,000 MW by 2030. Industrial power consumption in the state grew by about eight per cent last year, which is higher than the national average.
Fadnavis further noted that Maharashtra leads the country in rooftop solar installations and has prepared a comprehensive resource adequacy plan to ensure sufficient power supply over the next decade. The plan has since been adopted as a model by the central government, which has advised other states to prepare similar long-term strategies.
He added that the state has also formulated a detailed energy transition plan aimed at ensuring reliable power supply while accelerating the shift towards renewable energy.
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