Assam Aims for 11.7 GW Renewable Energy Capacity by 2030
The state also targets 2,000 KTPA of green hydrogen generation
April 3, 2025
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The Assam government has proposed adding 11,700 MW of renewable energy capacity by the end of the financial year (FY) 2030.
In its Assam Integrated Clean Energy (ICE) Policy 2025, which will be applicable for the next five years, the state has said clean energy projects and renewable energy manufacturing plants commissioned during the policy period will be eligible for incentives.
Projects approved under previous policies will be allowed to migrate to the ICE policy.
Targets
The policy targets 11,700 MW of renewable energy, 2,000 MWh of battery manufacturing, and 2,000 EV charging infrastructure by FY 2030.
It also targets 2,000 KTPA of green hydrogen generation by 2030.
Land allocation
Land will be allotted to developers on 30-year leases. Pumped storage projects (PSP) and mini and small hydropower projects will be leased land for up to 45 years. Developers will receive 100% compensation for land reclassification and stamp duty costs.
Transmission Connectivity
Developers can receive transmission connectivity in two ways:
- Developers can lay a connecting line to the state transmission utility (STU) grid station at their cost before handing it over. Alternatively, the STU may build the connecting line at the developer’s expense.
- Developers will bear the cost of the existing or new external power evacuation infrastructure, transferable to the STU. They must pay a capital cost of ₹2.5 million (~$ 29,221.80)/MW or the actual cost, whichever is higher. Developers must also pay operation and maintenance charges.
Fees
The project fees will be as follows:
Project Timelines
PSP project deadlines can be extended by 12 months, and other projects by up to 6 months.
Further deadline extensions will attract a penalty of 0.25% of the project cost per quarter for up to six months. Projects delayed further will not receive incentives.
Exemptions
- A 100% exemption from intrastate transmission charges for 20 years of the entire project life or 20 years, whichever is earlier
- Waiver of distribution/wheeling charges if power injection and withdrawal occur at the same voltage levels
If the voltage levels at injection and withdrawal points differ, then the following applies:
Distribution and wheeling charges for low-tension consumers will be paid on a per-unit basis, and these charges for high-tension consumers will be paid block-wise.
Project Guidelines Implementation
Rooftop Solar
Rooftop power projects must be between 1 kW and 1,000 kW for all categories except for the tea, coffee, and rubber segments.
Rooftop solar projects under the gross metering program can be installed with a maximum capacity of 1 MW.
Energy banking for tea/coffee/rubber segments will be permitted yearly.
Decentralized Solar Projects
The state will promote decentralized solar projects with a minimum capacity of 0.5 MW and a maximum capacity of 5 MW. The projects must be located near the 33 kV grid substations.
Captive Solar Projects
The nodal agency will purchase surplus energy at 75% of the average power purchase cost rate for captive projects within the state. The capacity of the captive solar projects will be limited to the consumer’s contract demand.
Green Hydrogen
The following categories of green hydrogen project developers will be eligible for incentives:
- Developers who have co-located renewable energy and green hydrogen generation projects
- Developers with green hydrogen generation projects and remotely located renewable energy power projects
- Developers with green hydrogen park/hub/cluster/valley
Incentives for Rooftop Solar Projects
The state government will provide a subsidy for rooftop solar projects under the PM Surya Ghar program of up to ₹15,000 (~$175.33) for 1 kW projects, ₹30,000 (~$350.66) for 2 kW projects, and ₹45,000 (~$525.99) for 3 kW projects.
Incentives for Solar Manufacturing
- Reimbursement of 100% net SGST on sale of products for seven years
- Electricity tariff subsidy of ₹1 (~$0.011)/kWh for 10 years for PLI/non-PLI qualifying manufacturers
- Electricity duty reimbursed for 10 years
- Open access charges will be exempted for 10 years
- Priority energy banking for 25 years for vertically integrated manufacturing plants
- Exemption from development and supervisory charges for power connectivity
Wind Projects
Developers can establish MW-scale wind power projects through open access.
Reactive power charges will be ₹0.25 (~$0.0029)/kVARh for up to 10% of the net energy generated and ₹0.50 (~$0.0058)/kVARh for the remaining energy.
Incentives for Wind Turbine Manufacturing
- Acquisition of land on actual cost basis and priority allotment of revenue/government land on a long-term lease basis
- Reimbursement of 100% net SGST on sale of products for seven years
- Exemption of open access charges for 10 years
- Subsidy on electricity tariff of ₹1 (~$0.012)/kWh and reimbursement of electricity duty lasting 10 years
Incentives for Wind-Solar Hybrid Projects
Reactive power charges applicable will be ₹0.25 (~$0.0029)/kVARh for up to 10% of the net energy generated and ₹0.50 (~$0.0058)/kVARh for the remaining energy.
Incentives for Green Hydrogen
- A 100% exemption of electricity duty for power consumed for green hydrogen production for up to 20 years
- A 100% waiver of interstate transmission and wheeling charges on energy consumed for up to 20 years
- Waiver of additional surcharge and cross-subsidy charge for up to 20 years
- Banking of power for up to 30 days with the state DISCOM and 50% waiver on monthly banking charges for 25 years
- Capital subsidy of up to 30% on electrolyzer stack projects and equipment of at 2,000 KTPA capacity
- Capital subsidy of up to 25% on equipment costs for projects utilizing 2G lignocellulosic biomass feedstock. The project must have a minimum capacity of 10 TPD
- A 50% waiver on water supplied
- A five-year exemption of motor vehicle taxes for green hydrogen vehicles
Incentives for Electrolyzer Manufacturing Facilities
- A 25% capital subsidy on expenditure for electrolyzer manufacturing projects, having a yearly production capacity of least a 250 MW. The subsidy will be applicable only for the first ten projects or up to 3,000 MW
- A 25% exemption on the applicable industrial water charges for five years
- A 100% reimbursement of net SGST paid, limited to 200% of the CGST on proton exchange membranes
- A 100% reimbursement of electricity duty for five years
- Reimbursement of power tariff at ₹1 (~$0.011)/kWh for five years
Incentives for Hydrogen Refuelling Stations
- A 25% capital subsidy on fixed capital investment for hydrogen refueling project for the first 10 units for five years
- A 100% net SGST reimbursement for refueling station machinery purchase for seven years
Incentives for PSP
Capital investment support of more than ₹3 billion (~$350.66 million) for ultra-mega projects.
SGST Reimbursement on Capital Investment
- Exemption of electricity duty for 25 years
- Exemption on cross-subsidy surcharge and additional surcharges for 20 years
- No imposition of free power to the home state
- Exemption from paying the cost of local area development
- Exemption of transmission charges for a maximum of 20 years
- Distribution/wheeling charges will be exempted for a maximum of 20 years
- Energy banking will not be extended for captive power projects supplying power to PSP projects
Incentives for BESS
- Distribution & wheeling charge waivers for 12 years
- Lifetime waiver of electricity duty
- 100% reimbursement of net SGST for seven years
Incentives for Battery Manufacturing Plants
- Acquisition of land on an actual cost basis
- Reimbursement of 100% stamp duty paid on purchase or lease of land
- Lease of land/shed/buildings, mortgages, and hypothecations related to BESS manufacturing plant
- Reimbursement of fixed power cost at ₹1 (~$0.011)/kWh for five years
- Reimbursement of electricity duty for five years
- Waiver of cross-subsidy surcharge for 10 years
- 100% Reimbursement of net SGST accrued for seven years
Incentives for EV Charging Infrastructure
- Government/public land allocated at a floor price of ₹1/kWh for private operators
- Separate EV tariff category with time-of-day pricing
- Mandate for charging stations in commercial and residential complexes with a built-up area of 5,000 sq m
- Utilization of unoccupied government land on highways for charging stations
- Development of mobile apps to identify existing EV charging stations
- A 100% exemption on electricity duty for consumed renewable energy
- Encouragement of renewable energy manufacturing zone development
In 2024, The Assam Electricity Regulatory Commission released the Assam Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024 draft.
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