Bihar Aims to Become a Clean Energy Leader
The Bihar government has introduced the Bihar Renewable Energy Policy 2025 with the aim of turning the state into a major hub for clean energy. The policy sets an ambitious target of developing 23.97 GW of renewable energy capacity and 6.1 GWh of energy storage by the financial year 2030. Launched just months before the upcoming state elections, this policy offers a range of attractive incentives designed to draw in investors, encourage clean energy development and generate employment opportunities.
Strong Financial Incentives for Developers
Under the new policy, developers will receive several financial benefits, including a 100% waiver of state GST, exemption from electricity duty for 15 years, and 25 years of open access to the power grid. They are also not required to contribute to local area development funds. To promote electric vehicle infrastructure, the state will offer government land at a 50% concessional rate for setting up the first 1,000 EV charging stations or projects up to 50 MW capacity—whichever is higher.
Reliable Support for Renewable Energy Projects
The policy also supports the stability and reliability of renewable energy projects. It grants "Must Run" status to these projects, ensuring they are not unfairly curtailed. Developers will be compensated even if their energy is not used, thanks to provisions for minimum generation compensation. The policy allows for energy banking, provides a strong payment security mechanism for sales to government departments and ensures that the state utilities cover transmission and distribution costs for up to 10 km.
Focus on Innovation and Sustainability
In a move to promote innovation and long-term growth, the policy allocates 5% of the renewable energy budget for research and development. It also allows developers to claim carbon credits under both national and international frameworks such as the UNFCCC. According to Bihar Energy Secretary Manoj Kumar Singh, this policy is one of the most investor-friendly in the country and is designed to place Bihar at the forefront of India’s green energy transformation.
Key Points from the Bihar Renewable Energy Policy 2025:
1. Incentives apply to RE projects commissioned and with PPAs during the policy period.
2. 100% electricity duty exemption for 15 years for captive and open access RE consumers.
3. SGST on RE and EV materials is 100% reimbursed for 5 years.
4. Stamp duty and registration fees are fully reimbursed for first-time land transactions.
5. No free power or LADF charges for small hydel projects.
6. Land conversion charges are fully reimbursed after commercial production starts.
7. Transmission and wheeling charges are 100% exempted for 15 years (20 years with storage).
8. STU charges are waived for captive and open access consumers.
9. 100% banking of RE is allowed year-round under BERC rules.
10. BERC will define technology-wise and capacity-based feed-in tariffs.
