In a significant step towards renewable energy integration, the Maharashtra State Electricity Distribution Company (MSEDCL) has proposed a Rs 20,000 crore battery storage project to support 16,000 MW of solar power generation under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. The plan involves deploying battery energy storage systems (BESS) to store surplus solar energy for use during peak night-time demand.

To make the large-scale project viable, MSEDCL has submitted a request for viability gap funding (VGF) to the Central government. A senior MSEDCL official confirmed that a proposal has already been sent. The Maharashtra Electricity Regulatory Commission (MERC) has approved the BESS plan, and a pilot contract has been awarded to a private firm, which is now setting up storage systems at 75 substations across the state.

The first BESS project is for 750 MW, requiring 1,500 MWh capacity. Setting up a one MW unit requires around Rs 1.25 crore and two MWh capacity. The Centre offers Rs 27 lakh per MWh as subsidy; however, most of the funding must come from private contractors. A subsidy for 500 MWh has been approved, while 1,000MWh is pending.