Madhya Pradesh Eyes 50000 Cr Investment for RE Segment by 2027

Recently, Madhya Pradesh Government published the new renewable energy policy titled “Madhya Pradesh Renewable Energy Policy – 2022.” Madhya Pradesh government indicates investing Rs 15,000 crore and Rs 50000 crore for RE (renewable energy) generation industry. The state government plans to build four thousand (4,000) MW of renewable energy projects in the open access solar by 2024 and ten thousand (10,000) MW by FY 2027, to export power outside the state.

Operative Period of the Policy

According to the document, the Policy shall remain in operation for five (5) years from the date of notification in the Madhya Pradesh State Gazette or until a new policy is notified by the State Government. The Office of the Commissioner, New and Renewable Energy Department, GoMP (“NRED”) shall be the Nodal Agency for the implementation of this Policy.

Policy Target

In the state’s renewable energy generation industry, the government intends to invest Rs 15,000 crore by 2024 and Rs 50000 crore (for RE) by 2027. By 2024 and 2027, respectively, 4,000 and 10,000 crores of rupees would be invested in the manufacturing of RE equipment. By FY 2024, FY 2027, and FY 2030, the State will incorporate 20%, 30%, and 50% of RE into its energy mix, respectively. 10,000 MW of Renewable Energy Technology-based Parks or RE Hybrid Parks will be built by FY 2027 under GoI/GoMP Scheme. By 2024 and FY 2027, respectively, there will be 4,000 MW and 10,000 MW of renewable energy projects for power exportation outside the state. By 2024, create more than 10,000 new jobs in the field of renewable energy; by 2030, create 50,000 new jobs.

Incentives for Renewable Energy Developers

The RE project will be eligible to receive a total (100%) exemption from paying electricity duty on the generation of electrical energy for 10 years following the date of commissioning. No energy development cess is to be paid on the power produced by renewable energy projects for ten (10) years beginning with the COD. Each renewable energy developer is eligible for the 50% reimbursement on stamp duty on the purchase of private land for the project.

All RE power projects will have access to wheeling through MPPTCL or MP Discoms, as appropriate, at the wheeling rates set by MPERC. 50% of the wheeling fee shall be waived, or as the Madhya Pradesh Electricity Regulatory Commission may from time to time allow. This exemption is valid after COD for five years.

Incentive for Renewable Energy Storage Project

Renewable energy-based projects utilising any commercially available energy storage technology will be eligible for an extra incentive. The renewable energy power project must have a minimum storage capacity of “X/10” MWh to be eligible for this additional incentive. 

Storage-related renewable energy projects will not be required to pay the full 20% of registration and facilitation fees. For ten years after project commissioning, renewable energy projects incorporating storage are exempt from paying electricity duty if they are used to supply power to distribution licensees, outside parties, or for captive use. Developers that buy private land for the project are entitled to a 15% stamp duty refund.

Incentives for Renewable Energy Equipment Manufacturers 

Special incentives under the Industrial Promotion Policy will be available to companies investing more than Rs 50 crore in the production of renewable equipment. According to the Medium Small and Micro Enterprise (MSME) department’s investment size policy, investments under Rs 50 crore would be eligible for rewards. Similar incentives would be given to makers of electrolyzers who invest more than Rs 50 crore and produce green hydrogen.

The reader can view/download this Madhya Pradesh Renewable Energy Policy 2022 documents and technical specifications here.