By Neeraj Kumar
Patna: To promote non-conventional energy sources, the Bihar government has finalised its new renewable energy policy, which includes a range of incentives for investors. The policy, awaiting approval from Chief Minister Nitish Kumar’s cabinet, is set to be implemented for five years once approved. Bihar Energy Minister Bijendra Prasad Yadav confirmed that the policy is ready for execution and will be notified post-approval.
Bihar’s first renewable energy policy, introduced in 2017, expired in 2022. The new policy aims to address the gaps in achieving renewable energy targets while providing substantial benefits to investors.
The Bihar Renewable Energy Development Agency (BREDA) worked with several government departments to draft the updated policy. Under the previous plan, the state aimed to generate 2,969 MW of solar energy, 244 MW of biofuel, and 220 MW of hydropower within five years. However, these targets were not fully met, highlighting the need for intensified efforts in the renewable energy sector.
The new policy sets ambitious goals, including fulfilling renewable energy purchase obligations that require 17% of Bihar’s total power generation to come from renewable sources. Failure to meet these targets could result in significant fines imposed by the Bihar Electricity Regulatory Commission.
To attract investment, the updated policy includes multiple incentives. Investors will benefit from exemptions provided by the Industries Department, as well as stamp duty reimbursement and registration fee compensation for solar projects. Projects developed within the state will also enjoy cross-subsidy surcharge exemptions. Units with a capacity of 33 kW or less will be exempt from transmission distribution loss, while the government will bear the cost of transmitting electricity within a specified distance from substations.
Special concessions for foreign investors have been introduced to make Bihar more appealing for renewable energy projects. These measures reflect the state government’s commitment to expanding the renewable energy sector and reducing dependence on conventional energy sources.
