The Madhya Pradesh government’s New and Renewable Energy Department has issued the Madhya Pradesh Renewable Energy Policy 2025, targeting 50% of annual power consumption from renewable energy resources by 2030.

The policy will be valid for five years and applies to all renewable energy projects of at least 500 kW. Decentralized renewable energy systems will not come under the purview of the policy.

The state government will form district-level implementation committees to operationalize the policy.

Policy Targets

• Attracting investments in the renewable energy equipment manufacturing sector
• Supplying renewable energy power to other non-renewable energy-rich states
• Meeting 20%, 30%, and 50% of annual power consumption through renewables by financial years (FY) 2024, 2027, and 2030 respectively
• Achieving 50% and 100% of green energy compliance by state-level government departments by 2027 and 2030, respectively.
• Developing model renewable energy cities and green zones
• Developing 50% and 100% of all heritage cities as green cities by 2027 and 2030 respectively
• Developing 10 GW of renewable energy/hybrid parks by FY 2027
• Developing 10 GW of renewable energy projects to export power outside the state by FY 2027
• Facilitating new technology development in renewables, hybrid, and energy storage space
• Increasing grid flexibility for additional renewable energy integration

Investment Targets

The policy targets attracting investments of ₹500 billion (~$5.7 billion) towards renewable energy generation and ₹100 billion (~$1.14 billion) for the renewable energy equipment manufacturing sector by 2027.

Incentives for Developers

• Electricity duty exemption of 100% for 10 years
• Stamp duty reimbursement of up to 50% on private land purchase
• Provision of government land at a concessional rate with a 50% rebate on a circle rate
• Waiver on wheeling charges up to 50% for five years

Incentives for the Production of Green Hydrogen

• Basic investment promotion assistance of up to ₹2 billion (~$22.95 million) released in installments
• Provision of 50% financial assistance on infrastructure development up to ₹50 million (~$573,805)
• Provision of 50% financial assistance for waste management systems up ₹50 million (~$572,975) and up to ₹100 million (~$1.14 million) for setting up effluent treatment plants it will be released in two equal instalments
• Complete reimbursement of expenses incurred for filing patents, copyrights, trademarks, and geographical indications of up to ₹1 million (~$1,1476.1)/kWh  for the first five years
• Mega industrial units with more than ₹5 billion (~$57.38 million) investment will be eligible for a customized package from the Cabinet Committee for Investment Promotion

Incentives for Energy Storage Projects

• Exemption from registration and facilitation fees of up to 20%
• Exemption on electricity duty for 10 years
• Up to 15% reimbursement on stamp duty on private land purchase
• Provision of government land at a concessional rate with a 50% rebate on a circle rate

Project Registration

Developers of projects of at least 1 MW must submit a non-refundable registration and facilitation fee of ₹100 (~$1.14)/kW of renewable energy/and/or energy storage. They must also pay ₹50 (~$0.57)/kW towards facilitation charges of the nodal agency and the remaining 50% towards project registration.

Projects registered with distribution companies (DISCOMs) or government agencies handling programs need not be registered.

Developers of projects with a capacity of over 1 MW must submit a non-refundable registration and facilitation of ₹ 100,000 (~$1,147.61)/MW of renewable energy/and/or energy storage. They must also pay ₹50 (~$0.57)/kW towards facilitation charges of the nodal agency and the remaining 50% towards project registration.

Projects supplying more than 50% of renewable energy to state DISCOMs will be prioritized over other renewable energy projects.

Green hydrogen and biofuels will receive first priority, followed by projects/parks developed under Rewa Ultra Mega Solar (RUMSL)/ or any other Madhya Pradesh entity. Third priority will be given to projects/parks with the Ministry of New and Renewable Energy approval and a letter of award from a public entity/ DISCOM and power procurers.

Fourth priority will be given to projects/parks developed by the government for captive purposes.

Fifth priority will be given to projects with over 250 MW capacity, where government land allotment is essential to bringing contiguity to private land.

Projects with 100 MW- 250MW capacity will receive sixth priority. If required, up to 25% of government land will be provided for project execution.

The last priority will be given to all other projects.

Green Cities/Villages

Any city meeting at least 30% of power requirements from renewable energy will qualify as a green city/village.

Renewable energy penetration will be achieved by developing onsite projects that are centralized or decentralized within the cities’ boundaries.

Projects being developed outside the city/village will be based on the net-zero carbon concept.

Key cities focused on heritage and tourism will be selected for the first phase. This phase will involve setting up pilot projects in Sanchi and Khajuraho.

Domestic and large institutional buildings with a connected load of over 6 kW will have to install rooftop solar systems mandatorily.

Renewable energy-based charging infrastructure will be developed within cities to introduce electric vehicles for public transportation.

Green Cities

Selected cities will undergo development in multiple stages.

Stage I will involve developing green substations, encouraging hawkers and street vendors to use solar lanterns, and streets to use solar-powered streetlights.

In Stage II, resident welfare associations and multistorey residential buildings will use renewable energy for common areas or households; households and commercial institutions with more than 6 kW of connected load will be encouraged to install rooftop solar systems for up to 50% of their requirements, and charging stations will procure 50% of their power from renewable sources.

No open access charges will be levied for 10 years.

Stage III will involve developing community-based solar projects and biogas generation.

Households within green cities/villages will be supplied with renewable energy. Power generation projects will be developed in a community or on barren lands.

Green Zones

Green zones will be dedicated areas where large corporations will be encouraged to operate offices, meeting 30% of their power requirements from renewable energy.

Corporations enrolled under global initiatives like RE-100 commitment, net zero emission, etc, will be eligible for green zones.

These corporations must have a minimum annual turnover of at least ₹500 million (~$5,738.05).

The government will notify the green zones within six months.

MP Urja Vikas Nigam (MPUVNL)/RUMSL will seek corporate interest in setting up offices in green zones and registering on the government portal.

Corporations can set up their own renewable energy projects as cooperatives or request MPUVNL/RUMSL to select a developer.

Incentives for Green Zones

• Electricity duty waiver of up to 100% for 10 years
• Up to 50% reimbursement of stamp duty on private land purchase
• Provision of government land at a concessional rate with a 50% rebate on the district-level committee rate
• Madhya Pradesh Power Transmission Company or DISCOMs will augment the grid substation and build new substations. They will also facilitate the evacuation line for the substations

The government will convert its offices into net zero carbon offices, and battery energy storage projects will be promoted.

The government will provide 100% financial assistance to technical, research institutions and private organizations to conduct technical feasibility studies, pilot projects, and demonstration projects to develop green cities and zones.

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