States Open Up With More Land Bank Policies For RE Projects

Marred by hurdles in land acquisition for new renewable energy projects, several Indian states are now coming up with innovative solutions like land banks to tackle the issue of land for green projects. Over the past few months, various states have announced or initiated plans to allocate dedicated land for green projects.

Uttar Pradesh

Earlier this year, the Uttar Pradesh New and Renewable Energy Agency (UPNEDA) introduced dedicated land banks for renewable projects. This initiative gained momentum as the state witnessed increased interest and investment from solar module manufacturers and project developers.

The state has earmarked a total of 23,000 acres of land for renewable projects, primarily in the Bundelkhand and Vindhya regions. This step aligns with Uttar Pradesh’s ambitious target of achieving 22 GW of renewable energy capacity. Notable investments have already been directed towards solar parks in Ayodhya and Jhansi, with several proposed projects concentrated in the vast tracts of land available in Bundelkhand.

Odisha & Rajasthan

Other states have also joined this trend. For instance, Odisha’s Renewable Energy Policy of 2022 emphasizes a dedicated land banks identified by the Industrial Development Corporation Organisation (IDCO) for industrial and renewable energy projects. With governmental support, Odisha, historically underrepresented in renewable energy, is striving to attract green investments.

Similarly, Rajasthan’s latest Integrated Clean Energy Policy highlights the availability of government land for renewable energy projects. The policy also promises extensive support from the government, particularly for projects involving energy storage systems.

The policy states: “For RE Power Projects with storage systems, additional land will be allotted as per the rules prescribed by the Revenue Department, Government of Rajasthan (GoR).”

Gujarat

In Gujarat, the state government has announced plans to establish land banks for renewable energy projects. Already a renewable energy leader, Gujarat hosts some of the country’s largest solar and wind installations and is gearing up for more hybrid projects. Additionally, the state’s significant number of solar module manufacturing units has cemented its reputation as a national hub for green energy.

Challenges and Opportunities

Despite these efforts, land acquisition remains a significant challenge for renewable energy developers. Many projects have faltered due to delays in securing suitable land, leading to penalties and even cancellations. Transmission projects, crucial for evacuating power from renewable installations, have also suffered due to land unavailability.

Developers often rely on local land aggregators to procure undisputed land parcels, a process fraught with delays and uncertainties. By proactively addressing these issues, states can facilitate the timely delivery of renewable energy projects and accelerate their green energy goals.