The State of Maharashtra has officially embarked on a transformative decade with the notification of the Maharashtra Renewable Energy and Energy Storage Policy 2025–26 to 2035–36. This landmark policy, released on March 18, 2026, represents a strategic shift from traditional energy generation to a “storage-first” approach. As Maharashtra faces rapidly rising peak demand, reaching a historic 30.7 GW in March 2025, this policy aims to ensure energy security through an unprecedented integration of renewable sources and energy storage systems (ESS).
Vision 2035: Powering “Viksit Maharashtra 2047”
The policy is designed to align with India’s national goal of achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Maharashtra’s specific vision is to achieve a 65% share of renewable energy in its total electricity demand by FY 2035-36.
To realize this, the state targets an installed renewable capacity of approximately 100 GW. A critical mandate of this policy is that the entire incremental growth in electricity demand between 2025 and 2035 must be met through additional renewable energy procurement. This ensures that as the state industrializes, its carbon footprint remains decoupled from its economic growth.
The Storage Mandate: Solving the Intermittency Challenge
Recognizing that solar and wind are variable and intermittent, the 2025-35 policy introduces India’s most robust Energy Storage Obligation (ESO).
- 10% Storage Requirement: Distribution companies (DISCOMs) in Maharashtra are now mandated to procure energy storage capacity equivalent to at least 10% of their peak demand by 2035.
- Storage Targets: The policy envisions a total daily storage capacity of 100 GWh (approximately 20 GW for a 5-hour duration).
- Green Charging: To be counted toward this obligation, at least 85% of the energy stored must be sourced from renewable energy on an annual basis.
- Mandatory Co-location: Starting April 1, 2026, new solar and wind projects must include co-located storage equivalent to at least 50% of the project capacity, with a duration of at least 2 hours (increasing to 4 hours from 2030).
Land Reforms: Removing Barriers to Investment
One of the most significant sections of the new policy concerns land availability, which has historically been a bottleneck for large-scale energy projects.
- Government Land at ₹1: For projects developed on government-owned land, the state offers a long-term lease of 30 years at a nominal rent of ₹1 per annum.
- Tax and Premium Waivers: Renewable energy and ESS projects are granted a 100% waiver on Non-Agricultural (NA) tax and related premiums.
- Stamp Duty Benefits: To further reduce capital expenditure, the policy provides for 100% stamp duty exemption for the purchase or lease of land for these projects.
Renewable Energy Industrial Zones (REIZ)
Maharashtra will pioneer Renewable Energy Industrial Zones (REIZ) to streamline infrastructure development.
- Scale and Scope: The policy plans for at least 10 REIZs by 2030 and 15 by 2035, with each zone having a minimum capacity of 100 MW.
- Plug-and-Play Infrastructure: These zones will be developed by state PSUs or through Public-Private Partnerships (PPP) to provide “plug-and-play” transmission and land facilities for wind and solar developers.
Transmission and Grid Modernization
A 100 GW target requires a massive overhaul of the transmission grid. The State Transmission Utility (STU) is already implementing a ten-year plan to add 6,879 ckt-km of line length.
- Standalone Storage Incentives: Standalone ESS projects drawing power from the grid for charging will be exempt from transmission charges, wheeling charges, and cross-subsidy surcharges, provided the stored energy is consumed within Maharashtra.
- Autonomy for MSLDC: To ensure neutral and efficient grid management, the policy initiates steps to restructure and provide greater autonomy to the Maharashtra State Load Despatch Centre (MSLDC) and the STU.
Empowering Consumers and MSMEs
The policy moves toward a decentralized and consumer-centric model by enhancing choice and competition.
- Green Open Access: The eligibility threshold for Green Open Access has been significantly lowered from 1 MW to 100 kW, allowing thousands of MSMEs to choose their own green energy suppliers.
- BESS for MSMEs: To help small industries manage their energy costs, MSEDCL will launch a bulk procurement program for 10–100 kW Battery Energy Storage Systems, with financial support potentially coming from the newly established Harit Urja Nidhi fund.
- 24×7 RE Contracts: Large commercial and industrial (C&I) consumers can now opt for verified 100% Round-the-Clock (RTC) renewable energy contracts through DISCOMs under a special “Green Tariff” category.
Repowering and Innovation
The policy also addresses the aging infrastructure of the state’s wind sector.
- Wind Repowering: Targeting 1 GW of wind repowering by 2030, the state offers an additional incentive of ₹0.5/kWh for the first 5 years for projects selling to MSEDCL. Captive repowering projects will receive 10-year Electricity Duty exemptions.
- R&D Hub: A new Maharashtra R&D, Innovation, and Start-up Centre will be established with an initial budgetary support of ₹100 crore per year for 3 years to pilot technologies like “Vehicle-to-Grid” (V2G) and “Storage-as-a-Service”.
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Institutional Transformation
To manage this massive transition, two key state agencies will be restructured:
- MSPGCL: The state generation company will transform from a thermal-heavy utility into a diversified player focusing on solar parks and hybrid systems. It is also mandated to make its existing coal fleet more flexible to complement renewable energy.
- MEDA: The Maharashtra Energy Development Agency (MEDA) will be restructured to move beyond mere “awareness building” and become a sophisticated facilitator of market integration and innovation.
A Blueprint for the Future
The Maharashtra Renewable Energy and Energy Storage Policy 2025-35 is a comprehensive roadmap that places the state at the forefront of the global energy transition. By committing to 100 GW of capacity and integrating a 10% storage mandate, Maharashtra is ensuring that its future industrial growth is not just rapid, but sustainable and resilient. For investors, developers, and consumers, the next decade in Maharashtra represents the most significant green energy opportunity in India.
How Hmsa Can Help
Hmsa can offer the following specialized services to clients entering Maharashtra’s renewable energy sector:
- Strategic Market Entry: Advising on the 100 GW target and 10% Energy Storage Obligation (ESO) to align investment with state mandates.
- Infrastructure Advisory: Facilitating entry into Renewable Energy Industrial Zones (REIZ) and navigating grid connectivity with the State Transmission Utility (STU).
- Operational Transformation: Assisting state agencies (MSPGCL/MEDA) in restructuring for a green-energy-first model.
- Innovation & Financing: Helping startups access the ₹100 crore annual R&D fund and advising on “Storage-as-a-Service” business models.
FAQs:
- What are the state’s core targets for the next decade, and how should my business align with them?
- Maharashtra aims to procure 65% of its electricity demand from renewable sources by FY 2035-36. The state targets an equivalent RE capacity of approximately 100 GW. Additionally, the policy mandates that the entire increase in electricity demand between 2025 and 2035 must be met through additional renewable energy procurement.
- Is it mandatory to include energy storage in my new renewable energy project?
- Yes, for certain projects. Starting April 1, 2026, it is mandatory for developers and prosumers of solar and wind projects above a 100-kW threshold to install a minimum level of storage capacity. The minimum level starts at 50% of the RE capacity with a 2-hour duration.
- What is the “Energy Storage Obligation” (ESO) and to whom does it apply?
- Electricity distribution companies (DISCOMs) must procure energy storage capacity equivalent to at least 10% of their demand by FY 2035-36. This obligation is only fulfilled if at least 85% of the stored energy is sourced from renewable energy annually.
- How can I secure land for large-scale projects, and what are the costs?
- The state offers several pathways for land acquisition such as i. Government Land: Available for RE and BESS projects at a nominal rent of ₹1 per annum for a 30-year lease; ii. Private Land Leasing: The base annual lease rate is either 6% of the land value or ₹1,25,000 per hectare (whichever is higher), with a 3% annual escalation; iii. RE Industrial Zones (REIZ): The state will develop at least 15 REIZs by 2035, each with a minimum size of 100 MW, to provide “plug-and-play” infrastructure.
- Will I face high transmission or wheeling charges for energy storage?
- No. Standalone energy storage projects (ESS) drawing power for intermediate storage are exempt from transmission, distribution demand, and wheeling charges, as well as electricity duty and cross-subsidy surcharges, provided the stored energy is consumed within Maharashtra.
- Can small businesses or MSMEs buy green power directly?
- Yes. The policy promotes Green Open Access (GOA) for consumers with a demand as low as 100 kW. For even smaller MSMEs (1–100 kW), the state is promoting direct RE procurement and bulk procurement of Battery Energy Storage Systems (BESS) to lower costs.
- Is there a provision for 24×7 100% renewable energy for corporate clients?
- Yes. DISCOMs are encouraged to offer a special “RTC” (Round-the-Clock) green tariff category for commercial and industrial (C&I) consumers who require verified 100% RE consumption for every time block.
- Are there specific tax benefits or fund supports available?
- Yes. The policy provides a waiver of Non-Agricultural (NA) tax and premiums for RE and ESS projects. Additionally, a Harit Urja Nidhi fund has been established to support various green initiatives, including bulk BESS procurement for MSMEs.
- How is the state simplifying the administrative process for new entrants?
- The policy mandates a single-window web portal for streamlined project registration, monitoring, and transparency. Furthermore, state agencies like MEDA and MSPGCL are undergoing comprehensive restructuring to better support market integration and innovation-led facilitation.
Reference: The Hindustan Times
