Maharashtra Proposes Rs. 20,000 Crore Ambitious Battery Energy Storage Project
Maharashtra State Electricity Distribution Company (MSEDCL) has proposed Rs. 20,000 Crore battery storage project to support 16,000 MW of solar power generation. The project would be executed under the Mukhyamantri Saur Krishi Vahini Yojana 2.0.
BESS Project for Storing Surplus Solar Energy
MSEDCL’s BESS project aims to store surplus solar energy generated during the day for use during peak night-time demand, promoting renewable energy integration. The project involves setting up BESS at various substations across Maharashtra.
The breakup cost of setting up a 1 MW unit is estimated to be around ₹1.25 crore, with a storage capacity of 2 MWh.
MSEDCL’s BESS Pilot to be Implemented at 75 Substations for storing 750 MW
Contract for the first pilot phase of this project has already been given to a private firm. This pilot project will have a capacity of 750 MW, requiring 1,500 MWh of storage capacity. 75 substations across Maharashtra have already been identified for this.
The Central government offers a subsidy of Rs. 27 lakh per MWh. Out of the 1500 MWh for the aforementioned pilot project, subsidy for 500 MWh has already been approved, and 1,000 MWh subsidy approval is pending.
Funding for the 16,000 MW BESS Project
MSEDCL’s Rs. 20,000 Crore BESS project will be implemented through a combination of funding sources, including Central government subsidy and investment by private sector through competitive bidding. Maharashtra Government is also seeking Viability Gap Funding (VGF) from Central government for this project. MSEDCL has already submitted a proposal to the Central government for VGF to make the project viable.
BESS project to be profitable for State Government in the long run
Maharashtra government would buy back the power stored with private run BESS at lower rates than the usual renewable energy rates. This would benefit the government in the long run and also save the energy wastage. If cleared by Centre, it could also be a model for other state governments to cut down dependency on energy generated through fossil fuels.
