MSEDCL Charting ₹20,000 Cr Battery Plan for 16GW Solar Mission

In a major stride toward round-the-clock clean energy availability, the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is preparing to deploy battery-based storage systems worth INR 20,000 crore to support its 16,000 MW solar power rollout under the ongoing Mukhyamantri Saur Krishi Vahini Yojana 2.0.

As the state rushes to meet its 2026 deadline for solar power generation through numerous solar parks across Maharashtra, MSEDCL has turned to a large-scale Battery Energy Storage System (BESS) network to support its renewable energy generation and utilisation.

750MW Storage Pilot Underway

As per media reports, a small-scale pilot project has already kicked off, with a private firm building BESS units across 75 substations. These storage nodes will hold surplus solar power that can be dispatched when demand spikes, reducing dependence on thermal energy and stabilising the grid.

The first such deployment covers 750 MW of solar generation, which requires 1,500 MWh of storage capacity. The Maharashtra Electricity Regulatory Commission (MERC) has already given its regulatory approval, clearing the way for this phase-wise execution.

₹1.25 Crore Per MW: Scaling Up to 16,000MW

The estimated cost of setting up this battery storage is at INR 1.25 crore per MW, with a 2 MWh storage requirement per MW of solar capacity. At that rate, building storage capacity for the full 16,000 MW will cost nearly INR 20,000 crore.

For financing the project, MSEDCL has sought Viability Gap Funding (VGF) from the central government. While the Centre has already sanctioned subsidies for 500 MWh, funding for the remaining 1,000 MWh of the first phase is still pending.

Ambitious Vision, National Implications

If implemented at scale, this project would represent one of the largest BESS initiatives by any state utility in India, aligning with national goals for renewable energy integration and grid resilience. It could also serve as a template for other high-solar-potential states seeking to firm up their renewable capacity through storage.

As India pushes toward a 500GW non-fossil energy target by 2030, storage systems are fast becoming a critical link in the chain – allowing intermittent sources like solar to deliver firm, dispatchable power.

With solar parks already under development and a phased battery rollout in motion, all eyes are now on the Centre’s response to MSEDCL’s VGF proposal. A green light could not only fast-track Maharashtra’s solar storage ambition, but also set a new benchmark for public sector-led energy transition.