MP 2025 Policy: Powering Non-RE States, Upgrading Substations

Madhya Pradesh has set a policy target to invest ₹50,000 crore by 2027 in the renewable energy generation sector. For renewable energy equipment manufacturing, the state plans to invest ₹10,000 crore by 2027 and ₹4,000 crore by 2024. Moreover, the policy intends to incentivize repowering and technology upgrades of renewable energy projects.

Additionally, Madhya Pradesh’s latest policy also aims to add 20% renewable energy (RE) to the state’s energy mix by FY 2024, 30% by FY 2027, and 50% by FY 2030. The policy also provides a broader target for 2027, stating, “The policy envisions developing a 10,000 MW renewable energy technology-based park/RE hybrid park under GoI/GoMP schemes by FY 2027. Additionally, it plans to add 4,000 MW of renewable energy projects for exporting power outside the state by 2024 and 10,000 MW by FY 2027. Moreover, it aims to generate more than 10,000 new jobs in the renewable energy sector by 2024 and 50,000 new jobs by 2030.”

Renewable Energy Sector Investments

Madhya Pradesh’s latest renewable energy policy also aims to achieve a 50% RE mix for the state by 2030. Until this target is met, it ensures that all annual Renewable Purchase Obligation (RPO) targets are fulfilled.

Key objectives include:

• Supplying RE power to other non-RE-rich states.
• Transforming 20%, 50%, and 100% of state-level government departments into 100% green energy-compliant entities by 2024, 2027, and 2030, respectively, ensuring a net-zero carbon footprint.
• Deploying renewable energy technologies through the development of model RE cities and green zones by 2030, following the net-zero framework.
• Developing 20%, 50%, and 100% of all heritage cities as green cities by 2024, 2027, and 2030, respectively.
• Promoting the establishment of renewable energy zones.

Incentives for Repowering/Technology Upgrades

The policy outlines incentives for repowering and technology upgrades of RE projects. If power is procured by MPPMCL or distribution licensees of Madhya Pradesh through a Power Purchase Agreement (PPA), the power generated, corresponding to the average quantum of energy produced in the last three years before the request for repowering or technology upgrades, will continue to be procured by MPPMCL/distribution licensees during the PPA term. The PPA period may also be extended to compensate for any generation loss during the repowering period. In case of any discrepancy between the policy and the PPA/agreement, the terms of the PPA/agreement shall prevail.

It also stated, “Land use permission under the existing Land Use Permission Agreement (LUPA) may be extended upon the recommendation of the nodal agency for the revised useful life of the project. The developer must pay 100% of the DLC rates for the remaining period.”

Power evacuation facilities for new pooling stations or the augmentation of existing substations for additional capacity due to repowering may be provided by MPPTCL based on load flow studies and available capacity. However, any additional expenditure incurred for the creation of this facility will be charged as per MPPTCL’s pricing.

Project developers must replace major equipment/components of existing RE projects in line with prevailing norms set by the state and central governments. The New and Renewable Energy Department (NRED) may release detailed guidelines and procedures based on repowering requirements in the state.

Land Requirements

The document also outlines land requirements based on project types and associated guidelines.