Summary:
—
## Key Policy Targets
### Renewable Energy Targets
| Target | FY 2029-30 | FY 2035-36 |
|——–|————|————|
| Share of RE in electricity demand | 43.33% (RPO) | 65% |
| RE generation required | ~140 BU | ~228 BU |
| Equivalent RE capacity needed | ~60 GW | ~100 GW |
### Energy Storage Targets
| Target | FY 2029-30 | FY 2035-36 |
|——–|————|————|
| Energy Storage Obligation (ESO) | 4% of demand | 10% of demand |
| Storage capacity needed | ~40 GWh/day | ~100 GWh/day |
| Storage procured from RE sources | – | Minimum 85% |
### Sector-Specific Targets
| Category | FY 2029-30 | FY 2035-36 |
|———-|————|————|
| RE with co-located storage | 10 GW | 25 GW |
| Thermal bundling with RE/storage | 2 GW | 5 GW |
| Long-term Green Open Access | 5 GW / 10 BU | 10 GW / 20 BU |
| Wind repowering projects | 1 GW | – |
| Renewable Energy Industrial Zones | 10 zones | 15 zones |
| Transmission-linked storage | 4 GWh | 10 GWh |
| Distributed storage (of total ESO) | – | 10% |
—
## Vision Statement
*”To significantly increase the generation and consumption of low-cost, eco-friendly grid-connected renewable energy and energy storage in Maharashtra’s electricity sector over the next decade, improving affordability, energy security, competition, and consumer choice.”*
—
## Six Guiding Strategies
### 1. Ambitious and Long-Term Renewable Energy Targets
– Target 65% RE share in electricity demand by FY 2035-36
– Entire increase in demand (2025-26 to 2035-36) to be met through additional RE procurement
### 2. Focus on Hybrid Projects and Energy Storage
– Minimum storage requirement: 50% of RE capacity with 2 hours duration (by FY 2030) and 4 hours duration (post FY 2031)
– Both co-located and stand-alone storage projects permitted
– Distributed storage projects for rural feeders and critical loads
– Urban and industrial Solar+Storage hubs around major cities (100-250 MW each)
### 3. Enabling Transmission Infrastructure and Land Availability
– Development of Renewable Energy Industrial Zones (REIZs) – minimum 100 MW each
– Government land available at nominal lease of ₹1 per annum for 30 years
– Private land lease: minimum of 6% of ready reckoner value or ₹1.25 lakh/hectare, with 3% annual escalation
– NA tax/premium waived for RE and BESS projects
– Transmission planning for 65% RE and 10% ESO by 2035-36
### 4. Promoting Competition and Consumer Choice
– Layered framework for small consumers (1-100 kW) based on capacity:
– Up to 3 kW: Concessional net metering
– 3-10 kW: Net metering
– 10-100 kW: Net billing or Green Open Access
– Green Open Access threshold reduced to 100 kW
– Single window clearance for OA applications
– 100% RE supply option for C&I consumers under special tariff
### 5. Incentives and Ease of Doing Business
– Single web portal for RE project registration (MEDA)
– All processes integrated online (Electrical Inspectorate, DISCOMs, etc.)
– Electricity duty exemption (10 years) for captive green OA projects with storage integration
– Additional ₹0.5/kWh incentive for repowering projects selling to MSEDCL (first 5 years)
### 6. Strengthening Institutions, Innovation, and Pilots
– Mandatory 2.5% of salary budget for training in all power sector institutions
– New R&D, Innovation, and Start-up Centre for Renewable Energy (₹100 crore/year for 3 years)
– Dedicated analytical cells: Planning, Power Sector Modelling, Trading, Legal
– Pilots on demand response, V2G, Storage-as-a-Service, agri-voltaics
—
## Key Regulatory Provisions
### Energy Storage Definition and Charges
– ESS recognized as unique asset class under Electricity Rules, 2022
– No transmission charges, distribution demand charges, electricity duty, or cross-subsidy surcharge when drawing power for storage (provided energy consumed within Maharashtra)
– Minimum connectivity threshold: 5 MW for InSTS network
### Storage Mandates
– **Rooftop solar (>100 kW from April 2026)**: Minimum 50% storage capacity with 2 hours duration
– **Open Access/Captive projects (>100 kW from April 2026)**: Same storage requirement
– Review and update of storage requirements every two years
### Banking Framework
| Consumer Category | Banking Terms |
|——————-|—————|
| Up to 3 kW | Annual banking, no banking charge |
| 3-10 kW | Monthly banking across ToD slots, Grid Support Charge applicable |
| 10-100 kW | Monthly within ToD slot, Grid Support Charge applicable |
| >100 kW (Green OA) | 15-minute block accounting, banking charges as per regulations |
### Pricing of DISCOM Services
– Unbundling of tariffs for grid services (balancing, banking, grid support)
– Cost-reflective pricing to incentivize consumer behavior and storage investment
– Surplus energy purchased at average G-DAM market price for that ToD slot
—
## Implementation Framework
### State-Level Steering Committee
**Chairperson**: Hon’ble Chief Minister / Energy Minister
**Members**: Additional CS (Energy), Principal Secretary (Industries), Principal Secretary (Revenue), CMD MSEDCL
**Functions**: Quarterly review, resolve inter-departmental challenges, recommend changes, issue directions
### Implementation Committee
**Chairperson**: Additional CS / Principal Secretary (Energy)
**Members**: CMDs of MSEDCL, MahaGenco, MahaTransco; MD MahaUrja; CEI; ED MSLDC; Deputy Secretary (RE)
**Functions**: Ensure timely implementation, monitor progress, recommend modifications
—
## Institutional Reforms
### MSETCL Restructuring
– Ring-fencing of STU and SLDC functions within 1 year
– Enhanced autonomy and accountability as per EA, 2003 Sections 39 and 31(2)
### MEDA Transformation
– Expert committee within 3 months for comprehensive restructuring plan within 1 year
– Shift from subsidy-based approach to market integration and innovation facilitation
### MSPGCL Transition
– Diversification into RE and storage portfolios
– Compliance with CEA flexibility regulations: 40% minimum load, 3%/min ramp rate (70-100% MCR)
– Phased decommissioning/modernization plan for aging coal fleet
### MSLDC/STU Autonomy
– New structural arrangements ensuring independence
– Study on Distribution System Operators (DSO) feasibility within 1 year
—
## Transmission Infrastructure Development
### Key Initiatives
– TBCB mode for RE evacuation projects (threshold reduced to ₹200 crore)
– Reconductoring study within 1 year using HTLS conductors
– Grid-forming inverter standards for high-IBR scenarios
– 5-year grid strengthening and modernization plan
– 500-1000 MW grid-connected BESS for stability and ancillary services
### Connectivity Framework
– Separate RE grid connectivity procedure (January 2025)
– Solar hour vs. non-solar hour access differentiation (study within 12 months)
– Partial project commissioning and capacity enhancement flexibility
—
## Innovation and Pilot Programs
### R&D and Start-up Centre (₹100 crore/year for 3 years)
– Focus areas: Agri-voltaics, demand response aggregation, load shifting, metering innovations, green manufacturing, new BESS technologies, peer-to-peer rooftop solar trading
– V2G and Storage-as-a-Service pilots
### Demand Response Program (3-year)
– Manual and Auto DR testing
– Residential, commercial, and industrial consumer targeting
– Rigorous M&E framework with scalability focus
### Two-Part Tariff Study
– Feasibility study for wind/solar akin to thermal/hydro tariff
– Analysis of advantages, challenges, and regulatory changes needed
—
For more information please see below link:
