MSEDCL Proposes ₹20,000 Cr Battery Storage for 16 GW Solar

In a major push for renewable energy adoption, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has proposed a ₹20,000 crore battery energy storage project to support 16,000 MW of solar power capacity under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. The initiative aims to install large-scale Battery Energy Storage Systems (BESS) to store surplus solar power for use during peak night-time demand, ensuring a more stable and reliable power supply.

To ensure the project's financial viability, MSEDCL has sought viability gap funding (VGF) from the Central government. A senior MSEDCL official confirmed that the proposal has already been submitted. The Maharashtra Electricity Regulatory Commission (MERC) has approved the BESS rollout, and a pilot contract has been awarded to a private firm, which is currently installing storage systems at 75 substations across the state.

The first phase of the BESS project involves a 750 MW system with 1,500 MWh storage capacity. Each 1 MW unit, with 2 MWh storage, is estimated to cost around ₹1.25 crore. While the Central government offers a subsidy of ₹27 lakh per MWh, the majority of funding will be sourced from private partners. A subsidy for 500 MWh has already been approved, while the remaining 1,000 MWh is still under consideration.

News by Rahul Yelligetti.