Nagpur: Maharashtra govt has approved a new renewable energy and energy storage policy, targeting 65% of state’s electricity demand from renewable sources by FY 2035-36. The policy also mandates that electricity distribution companies procure energy storage equivalent to at least 10% of their demand by the same year. The storage obligation will count as fulfilled only if at least 85% of total energy stored is procured from renewable sources annually.The policy, which was approved at the Cabinet meeting held on Feb 22, was formalised through a GR formally issued on Wednesday.The state currently has 31.3 GW of installed renewable energy capacity as of January 2026, with renewable sources, including large hydro projects, accounting for around 15% of total electricity generation. Peak demand reached 30.7 GW in March 2025, nearly 50% increase from 20.4 GW in March 2015. Electricity supply has grown from 133 billion units in FY 2014-15 to 201.8 billion units in FY 2024-25, with demand projected to reach 260-270 billion units by 2030.To meet the 65% renewable target, equivalent capacity needed is around 100 GW. For the 10% energy storage obligation, equivalent storage capacity needed is around 100 GWh/ per day by FY 2035-36, or about 20 GW assuming an average five-hour duration. The policy notes the state is already on a firm path to meeting 50% of electricity demand from renewable energy by FY 2029-30.New solar PV, wind and wind-solar hybrid capacity procured by distribution licensees must include co-located storage equivalent to at least 50% of RE capacity, with a minimum storage duration of two hours for projects commissioned by the end of FY 2029-30 and four hours for projects from FY 2030-31 onwards. The policy requires at least 10 GW of such new contracted capacity by FY 2029-30 and 25 GW by FY 2035-36.With the eligibility threshold for Green Open Access (GOA) already lowered from 1 MW to 100 kW, the policy focuses on operationalising competitive energy procurement for a significantly larger number of consumers, particularly MSMEs. Long-term captive GOA projects that integrate energy storage for a minimum of four hours at 50% of contracted RE capacity will be exempt from electricity duty for 10 years from commissioning.The policy provides for development of at least 10 renewable energy industrial zones across the state by FY 2029-30 and 15 by FY 2035-36, with aggregate budgetary support of Rs500 crore. Each zone must have a minimum capacity of 100 MW. A new R&D, startup centre for renewable energy will be established, with a grant of Rs 100cr per year for 3 years.
