Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is planning a ₹20,000 crore Battery Energy.

Storage System (BESS) project to store surplus solar power from its 16,000MW generation target under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. The project aims to store excess solar energy for use during night-time peak demand. MSEDCL has sought viability gap funding (VGF) from the Central government to make the project financially feasible. The Maharashtra Electricity Regulatory Commission (MERC) has approved the initiative, and a pilot contract is underway to build 1,500MWh storage for 750MW at 75 substations. Setting up 1MW storage requires ₹1.25 crore and 2MWh capacity. While the Centre has approved subsidy for 500MWh, the remaining 1,000MWh is pending. MSEDCL plans to float large-scale tenders if further subsidies are granted. Power stored by private firms will be sold back to MSEDCL at a lower cost, ensuring mutual financial and energy efficiency benefits.