Meghalaya Govt Unveils Policy To Boost Solar, Wind Energy Capacity

The Meghalaya government recently released its policy to execute and expand solar power generation in the state, aiming to increase its solar power capacity from the current 4.28 MW (Till Nov. 2024). The latest policy released by the state allows short-term power purchases on behalf of the State Distribution Utility, entering into Power Purchase Agreements (PPAs) with new renewable power plants in the state, and efficient power management. Moreover, to develop and promote solar power generation in Meghalaya, its power department released a draft Meghalaya Power Policy. This policy will remain effective until March 31, 2030, unless notified otherwise.

Through this policy, the state envisions expanding investment in solar and wind energy projects, diversifying its energy portfolio, and promoting environmental sustainability. The policy document stated, “For Solar, the Government of Meghalaya aims at setting up Solar Power Projects with a cumulative capacity of a minimum of 100 MW by 2030. For Wind, the National Institute of Wind Energy has estimated a potential of 44 MW of Wind Energy in the state at the 50-meter level. This potential further increases to 82 MW at the 80-meter level. The Policy aims to harness the wind potential in the state to its maximum level, both at 50 meters and 80 meters, by 2030.”

Solar Power Expansion

The policy has categorized solar projects into three parts:

• Category I projects would be awarded through Tariff-Based Competitive Bidding.
• Category II projects would be awarded by the State-Level Committee on a first-come, first-served basis.
• Under Category III, the Government of Meghalaya aims to set up Solar Power Projects with a cumulative capacity of a minimum of 100 MW by 2030.

To accomplish this target, the state government plans to develop solar power projects through the State Power Generating Company. The use of private land may be minimized. To provide for such a large tract of contiguous land with appropriate insolation levels, the state government may prioritize the use of government waste or non-agricultural land to expedite the acquisition process. Project locations would preferably be closer to the transmission utility.

To identify potential projects, the Meghalaya Power Generation Corporation (MePGCL) will prepare a detailed project report (DPR), including cost estimates and feasibility studies. The guideline places no land restrictions in terms of hectares per MW for the development of solar projects under this category. However, MePGCL is expected to minimize land requirements.

Exemptions for Solar Power Projects

The Meghalaya government offers exemptions for solar power projects, including the conversion of land to non-agricultural use. For instance, the policy provides a 100% transmission and wheeling charges waiver for the initial two years of commercial operations, with an increase of 25% per year thereafter. From the seventh year of commercial operation, 100% transmission and wheeling charges will be levied.

The policy also grants exemptions on cross-subsidy surcharges and additional surcharges. Additionally, electricity duty is waived for captive consumption, sales to distribution licensees, and third-party sales for all solar power projects established within the state. Electricity duty will also be waived for new manufacturing facilities and ancillaries of solar power projects.

Wind Energy Projects

Wind energy also offers significant growth potential across the nation, utilizing only 2% of the land for wind farms, leaving the remaining land available for agriculture, hybrid solar power projects, and other uses. Furthermore, the gestation period for wind turbine installation is substantially shorter compared to other technologies. It is also noteworthy that wind power tariffs have been significantly reduced under the current regime.