GAIL (India) Ltd has approved an investment of ₹3,800 crore in order to set up 700 MW of solar energy capacity in Uttar Pradesh and Maharashtra.

According to the state-owned gas utility firm, the solar plants shall serve their captive purposes by providing clean energy for its petrochemical and industrial operations. This is one trend that has been adopted by many traditional energy firms in their bid to integrate renewable energy generation with their core business activities.

These include setting up a 600 MW solar plant located at TUSCO Solar Park in Jhansi, Uttar Pradesh, which shall be paired with 550 MWh battery energy storage systems (BESS). This shall be enough to provide power for the operation of GAIL's petrochemical facility in Pata, Auraiya.

In addition, a 100 MW solar plant shall be set up in the state of Maharashtra at Chhatrapati Sambhaji Nagar district together with 22 MWh storage. This solar power plant shall cater to the energy demands of GAIL’s PDH-PP plant in Raigad district.

The role of battery storage in the system aims at dealing with the problem of intermittency in the power generation process and enabling energy supply throughout the day. It should be noted that such systems are considered critical in the context of renewable energy deployment on an industrial scale.

After the commissioning of the plants, the company's total renewable energy capacity will go up to 1,000 MW compared to the current level of 147 MW.

The move fits into the company's strategy of expanding the green energy portfolio and developing its combination with traditional energy sources. Moreover, it may be viewed as one of the trends characteristic of the Indian energy sector as state-owned companies continue making investments in renewable energy.

On the other hand, the use of captive solar capacity by GAIL can also be regarded as another example of the growing importance of energy security for industrial consumers. It allows the company to produce energy on its own premises and ensure its independence from market fluctuations.

The announcement comes amid increasing momentum in India’s solar sector, with both public and private players accelerating capacity additions. However, the effectiveness of such investments will depend on execution timelines, grid integration, and the scaling of storage infrastructure.