Maharashtra Cabinet Approves ₹12,303 Crore MAGESTIC Scheme to Scale Renewable Energy to 50% by 2030

The Maharashtra state cabinet, chaired by Chief Minister Devendra Fadnavis, approved the “Maharashtra: Accelerating Green Energy and Storage Technologies Integration in Connected Grid” (MAGESTIC) scheme on 29 April 2026. This ₹12,303 crore programme is designed to increase the share of renewable energy in the state’s connected grid from the current generation mix of 17% to 50% by 2030.

Financial Framework and Funding Structure

The capital structure for the MAGESTIC scheme involves a total investment of ₹12,303 crore, primarily leveraged through international multilateral assistance. A preliminary report regarding the funding model will be submitted to the Union Department of Economic Affairs and the Department of Finance for final processing.

Strategic Renewable Targets and Grid Modernisation

The scheme establishes technical targets to enhance grid flexibility and sub-transmission resilience to accommodate the increasing penetration of Variable Renewable Energy (VRE).

• Renewable Energy Mix: A target to raise the renewable energy share in the generation mix from 17% to 50% by 2030.
• Infrastructure Construction: The development of 40 new substations and the installation of high-efficiency conductors to facilitate dynamic network operation.
• Grid Strengthening: Upgrading existing transmission lines to mitigate the intermittency and ramp-rate challenges associated with solar and wind loads.
• Capacity Context: Modernisation is required to address a peak deficit that reached 6.8% in FY2023 and to manage a total installed capacity of 47 GW, of which 29 GW is currently thermal-based.

Energy Storage and Hydroelectric Integration

Technical studies and the deployment of storage assets are central to maintaining grid stability against reverse power flows and climate-related disruptions.

• Battery Energy Storage Systems (BESS): The deployment of 16,000 MWh of BESS capacity is required to manage grid stresses identified in recent CSTEP assessments. This necessity stems from the integration of distributed solar under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) 2.0 at the 11/22/33 kV distribution levels. During low agricultural demand periods, particularly in the monsoon season, solar generation is expected to exceed local consumption, necessitating storage to prevent distribution-to-transmission reverse flows.
• Pumped Hydro Support: The scheme provides technical support and feasibility studies for pumped hydro energy storage projects. Key sites identified for these developments include Koyna, Panshet, and Varasgaon.
• Grid Resilience: These storage technologies are essential for maintaining the “must-run” status of renewable projects while ensuring the grid can manage high-volume reverse flows and variability.

Institutional Framework and Implementation Roadmap

A structured governance model has been established to ensure the execution of the state’s five-year roadmap.

• Implementing Agencies: The project will be executed by Maharashtra State Electricity Distribution Company Limited (MSEDCL/Mahavitaran), Maharashtra State Electricity Transmission Company Limited (MSETCL/Mahatransco), Maharashtra State Power Generation Company Limited (Mahagenco), and Maharashtra Renewable Energy Limited (MREL).
• Timeline: Implementation is scheduled to take place over a five-year window from 2026 to 2031.
• Governance: A separate project control cell and a dedicated unit within the State Power Division and Energy Department will be established for continuous monitoring and inter-agency coordination.

Policy Context: Alignment with State and National Goals

The MAGESTIC scheme integrates with broader decarbonisation and digitalisation trends within the energy sector:

• Maharashtra Power Sector Vision 2030: Alignment with the state’s roadmap focusing on the “3Ds”: Decarbonisation through renewable expansion, Decentralisation via rooftop solar and storage, and Digitalisation of network operations.
• India’s Nationally Determined Contributions (NDCs): Support for the national target to reduce emissions intensity by 45% and achieve 50% of installed power capacity from non-fossil sources by 2030.
• Complementary State and National Schemes: Integration with the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) 2.0 for agricultural solarisation and the national PM-KUSUM scheme for solar pump adoption.