Mumbai: Maharashtra Chief Minister Devendra Fadnavis, while presenting the state budget for 2026–27, described the energy sector as the “foundation of Viksit Maharashtra”, outlining an ambitious plan to achieve energy independence and strengthen grid stability.
The strategy focuses on shifting the state’s energy mix from thermal-heavy generation to renewable sources such as solar, wind and pumped storage.
Target of 45 GW New Power Capacity
The Maharashtra government has set a target to add 45 gigawatts (GW) of power capacity by 2032. As part of the plan, the share of renewable energy in the state’s energy mix is expected to increase significantly—from 13 percent currently to 52 percent by 2030.
Asia’s Largest Decentralised Solar Programme
Maharashtra is currently implementing Asia’s largest decentralised solar programme. The state is expected to generate 16 GW of solar power by the end of 2026, with nearly 500 MW of solar capacity being added every month.
The government has also proposed shifting the entire agricultural power load to solar energy, which is expected to reduce electricity costs for farmers from around ₹8 per unit to less than ₹3 per unit. This move is also likely to reduce the cross-subsidy burden on industries.
Officials said the state plans to soon cross 10 lakh solar pump installations, with Maharashtra already accounting for about 60 percent of all solar pumps in India.
Focus on Pumped Storage Projects
To address the intermittency challenges associated with solar and wind power, the budget prioritises pumped storage projects (PSPs).
The government is currently fast-tracking 55 Memorandums of Understanding (MoUs) for pumped storage projects with a combined potential of 78,215 MW and an estimated investment of ₹4.16 lakh crore.
These projects will act as energy reservoirs, storing surplus electricity during the day and releasing it during peak demand hours at night.
Push for Green Hydrogen
Chief Minister Fadnavis also said Maharashtra aims to become a national hub for green hydrogen production.
The budget supports the development of specialised green hydrogen hubs, likely to be established in coastal regions such as Raigad and Ratnagiri, to supply clean fuel to sectors like steel and chemicals.
Expansion of Bioenergy and CBG Plants
Maharashtra currently leads the country in bioenergy capacity with around 3,000 MW. The state government plans to further encourage the development of compressed biogas (CBG) plants, which convert agricultural waste into clean fuel.
Strengthening Power Transmission Network
To support the expansion of renewable energy, the government has proposed expanding high-voltage transmission lines. These will help transmit electricity from solar-rich regions such as Marathwada and Vidarbha to industrial hubs in western Maharashtra.
Officials said the initiatives outlined in the budget aim to accelerate Maharashtra’s transition toward clean energy, energy security and sustainable economic growth.
