The Maharashtra Electricity Regulatory Commission (MERC) has given the Maharashtra State Electricity Distribution Company Limited (MSEDCL) permission to buy 2,000 MW / 4,000 MWh of Battery Energy Storage Systems (BESS). The choice also includes approval of the tariff that was found through a competitive bidding process for the purchase of large-scale storage.
The order, which was given on March 6, 2026, allows MSEDCL to buy battery storage space from BESS developers who are not part of the company. The project is thought to be one of the largest battery storage purchases in India. The goal is to get the state’s power system to use more renewable energy.
Purpose of the Battery Storage Procurement
The battery energy storage systems will help keep extra renewable energy and release it when there is a lot of need for power. This will make the grid more stable and make it easier to use solar and wind energy.
Earlier, MSEDCL filed a petition asking for approval of the tariff that was found through tariff-based competitive bidding for the purchase of 2 GW / 4 GWh of storage space. MERC looked over the petition and agreed to the project’s tariff.
Role in Renewable Energy Integration
The storage systems should be very useful for handling changes in how much renewable energy is made. When there is a lot of renewable energy, the systems will store extra power and give it out when there is a lot of demand. This will help balance the grid and make the power system work better.
Battery storage will also help distribution companies meet their energy storage obligations and reduce dependence on conventional power sources during peak demand hours.
Competitive Bidding Process
The battery storage capacity will be bought from developers through a bidding process that is open to everyone. Based on the price found through the bidding process, developers will set up the storage systems and provide MSEDCL with energy storage services.
Maharashtra is making a big step toward improving its power infrastructure and supporting the integration of large amounts of renewable energy through advanced energy storage with this approval.
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