The Maharashtra State Electricity Distribution Company (MSEDCL) has suggested a Rs 20,000 crore project to store energy using batteries. This project would support 16,000 MW of solar power generation under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. 

The idea is to use battery energy storage systems (BESS) to save extra solar energy for when electricity demand is highest at night.

To make this large project possible, MSEDCL has asked the Central government for viability gap funding (VGF). A senior MSEDCL official confirmed that a proposal has already been sent. 

The Maharashtra Electricity Regulatory Commission (MERC) has approved the BESS plan, and a trial contract has been given to a private company. This company is now setting up storage systems at 75 substations across the state.

The first BESS project is for 750 MW, needing 1,500 MWh capacity. Setting up a one MW unit costs around Rs 1.25 crore and has a two MWh capacity. 

The Central government offers a subsidy of Rs 27 lakh per MWh; however, most of the money must come from private contractors. A subsidy for 500 MWh has been approved, while 1,000 MWh is still pending.