Maharashtra Unveils Ambitious Renewable Energy and Storage Policy
The Maharashtra government has given its formal approval to a groundbreaking renewable energy and energy storage policy, setting an ambitious target to meet 65% of the state's total electricity demand from renewable sources by the financial year 2035-36. This strategic move was formalized through a Government Resolution (GR) issued on Wednesday, following its approval at a Cabinet meeting held on February 22.
Key Targets and Mandates
The policy introduces a mandatory requirement for electricity distribution companies (discoms) to procure energy storage equivalent to at least 10% of their total demand by the same target year of FY 2035-36. Crucially, this storage obligation will only be considered fulfilled if a minimum of 85% of the total energy stored annually is sourced from renewable energy installations.
To contextualize these targets, Maharashtra currently possesses an installed renewable energy capacity of 31.3 gigawatts (GW) as of January 2026. Renewable sources, which include large hydroelectric projects, currently contribute approximately 15% to the state's total electricity generation. This marks a significant gap that the new policy aims to bridge over the coming decade.
Addressing Growing Energy Demand
The policy arrives at a critical juncture as Maharashtra's energy consumption continues to surge. Peak electricity demand reached 30.7 GW in March 2025, representing a nearly 50% increase from the 20.4 GW recorded in March 2015. Overall electricity supply has grown from 133 billion units in FY 2014-15 to 201.8 billion units in FY 2024-25, with projections indicating demand could escalate to 260-270 billion units by 2030.
To achieve the 65% renewable energy target, Maharashtra will need to develop approximately 100 GW of new renewable capacity. Simultaneously, meeting the 10% energy storage obligation will require around 100 gigawatt-hours (GWh) of storage capacity per day by FY 2035-36, equivalent to about 20 GW assuming an average discharge duration of five hours.
Phased Implementation and Storage Integration
The policy outlines a phased approach, noting that the state is already on a firm trajectory to meet 50% of its electricity demand from renewable sources by FY 2029-30. For new solar photovoltaic (PV), wind, and wind-solar hybrid capacity procured by distribution licensees, the policy mandates co-located storage equivalent to at least 50% of the renewable energy capacity.
Specifically, projects commissioned by the end of FY 2029-30 must include storage with a minimum duration of two hours, while projects from FY 2030-31 onwards require storage with a minimum duration of four hours. The policy sets capacity targets of at least 10 GW of such new contracted capacity by FY 2029-30, scaling up to 25 GW by FY 2035-36.
Incentives for Green Open Access and Industrial Development
Building on the recent reduction of the Green Open Access (GOA) eligibility threshold from 1 megawatt (MW) to 100 kilowatts (kW), the policy focuses on operationalizing competitive energy procurement for a significantly larger consumer base, particularly Micro, Small, and Medium Enterprises (MSMEs).
To encourage investment, long-term captive GOA projects that integrate energy storage for a minimum of four hours at 50% of their contracted renewable energy capacity will be granted a ten-year exemption from electricity duty, commencing from their commissioning date.
Infrastructure and Innovation Support
The policy also provides for the development of dedicated renewable energy industrial zones across Maharashtra. The target is to establish at least 10 such zones by FY 2029-30, expanding to 15 by FY 2035-36, with each zone required to have a minimum capacity of 100 MW. An aggregate budgetary support of Rs 500 crore has been allocated for this initiative.
Furthermore, to foster innovation, the policy mandates the establishment of a new Research & Development and startup centre specifically for renewable energy technologies. This centre will receive a substantial grant of Rs 100 crore per year for a period of three years, aimed at accelerating technological advancements and entrepreneurial ventures in the clean energy sector.
This comprehensive policy framework positions Maharashtra at the forefront of India's energy transition, combining aggressive renewable targets with concrete storage mandates and supportive infrastructure to ensure a sustainable and reliable power supply for its growing economy.
