Maharashtra Targets 65 Percent RE Share with 100 GW Capacity and Large-Scale Storage by FY36

The Government of Maharashtra has announced its Renewable Energy and Energy Storage Policy for 2025–26 to 2035–36, positioning the state as a key driver in India’s energy transition over the next decade. 

The policy lays out ambitious targets for clean energy adoption, storage deployment, and grid modernisation. Under the policy, Maharashtra aims to meet 65 percent of its total electricity demand from renewable energy sources by FY 2035–36. The state’s electricity demand is projected to reach 350–360 billion units (BU) by that period, with the entire incremental demand expected to be fulfilled through additional renewable energy procurement.

To support renewable integration, distribution companies (DISCOMs) will be required to procure energy storage capacity equivalent to at least 10% of their demand by FY 2035–36. Based on these targets, the state estimates a requirement of around 100 GW of renewable energy capacity, along with energy storage systems (ESS) of about 100 GWh per day (equivalent to 20 GW with 5-hour storage duration).

The policy also introduces regulatory and financial incentives for storage deployment. Energy storage systems drawing power for intermediate storage will be exempt from transmission charges, distribution demand and wheeling charges, electricity duty, and cross-subsidy surcharge—provided the stored energy is consumed within Maharashtra. Additionally, the minimum connectivity threshold for ESS projects to access the intra-state transmission system (InSTS) has been set at 5 MW.

Maharashtra has set phased targets for renewable energy projects with co-located storage. At least 10 GW of new contracted renewable capacity, limited to solar PV, wind, and hybrid projects, with storage is planned by FY 2029–30, increasing to 25 GW by FY 2035–36. Storage capacity must be at least 50 percent of the renewable capacity, with a minimum duration of 2 hours for projects commissioned up to FY 2029–30, and 4 hours for those commissioned thereafter.

The policy also promotes decentralised and distributed storage. DISCOMs will conduct cost-benefit analyses to evaluate storage deployment in rural and urban areas under Demand Flexibility Portfolio Obligation (DFPO) regulations and Energy Storage Obligation (ESO) targets. Around 10 percent of the total storage requirement is expected to be met through decentralized ESS.

In a significant move, projects above 100 kW seeking grid connectivity from April 1, 2026, will be mandated to install energy storage systems. Initially, developers and prosumers must deploy storage equivalent to at least 50 percent of their renewable capacity, with a minimum duration of 2 hours.

The policy also encourages bundling of thermal power with renewable energy and storage systems, particularly solar PV and battery storage. It sets targets of 2 GW by FY 2029–30 and 5 GW by FY 2035–36 under this hybrid approach.

On the transmission front, the Maharashtra State Electricity Transmission Company Ltd.  (MSETCL) will assess storage requirements linked to grid infrastructure, with indicative targets of 4 GWh by FY 2029–30 and 10 GWh by FY 2035–36. The State Transmission Utility (STU) will also develop plans to establish large-scale grid-connected battery energy storage systems (BESS) ranging from 500 MW to 1,000 MW to enhance grid stability and provide ancillary services.

With a strong focus on scaling renewable capacity, integrating storage, and modernising grid infrastructure, the policy is expected to significantly accelerate Maharashtra’s clean energy transition while ensuring reliability and flexibility in its power system.