Maharashtra Unveils ₹20,000 Crore Battery Storage Drive to Power 16,000 MW Solar Push – EQ
In Short : MSEDCL is planning a ₹20,000 crore battery energy storage project to support 16,000 MW of solar power under the Saur Krishi Vahini Yojana 2.0. The project includes installing BESS at 75 substations, starting with a 1,500 MWh pilot. With regulatory approvals and central subsidies in place, tenders will soon be floated for private participation and deployment.
In Detail : The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has announced a ₹20,000 crore plan to establish large-scale battery energy storage systems (BESS) across the state. This initiative is part of its broader goal to integrate 16,000 MW of solar power under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. The project is expected to be operational by 2026.
To manage surplus solar power generated during the day and meet peak demand in the evening, MSEDCL will install BESS at 75 substations. The plan begins with a pilot phase featuring 1,500 MWh of storage capacity, capable of holding 750 MW of solar energy.
The estimated cost of installing each megawatt of battery storage is about ₹1.25 crore for 2 MWh capacity. This puts the total investment for the entire 16,000 MW solar integration project at approximately ₹20,000 crore, covering all phases of the rollout.
Central government subsidies have been secured for 500 MWh of the pilot project, at ₹27 lakh per MWh. MSEDCL has also submitted a proposal for viability gap funding to support the remaining 1,000 MWh of storage. This financial support is critical to making the project economically viable.
The Maharashtra Electricity Regulatory Commission (MERC) has already approved tariffs for the 1,500 MWh storage capacity at ₹2.19 lakh per MW per month over a 12-year term. This tariff structure will allow MSEDCL to sign power purchase agreements with selected developers within a 30-day window.
Once additional subsidies are confirmed, MSEDCL will issue tenders inviting private players to deploy and operate the BESS infrastructure. These companies will store power and sell it to MSEDCL, contributing to greater grid stability and optimizing Maharashtra’s growing solar energy capacity.
