Madhya Pradesh is one of the frontrunner states with respect to renewable energy uptake in India. As per the national power portal, the state’s total installed power generation capacity stands at 30,059.53 MW as of January 2023. The renewable energy capacity in Madhya Pradesh has grown nearly tenfold over the past decade. According to the Ministry of New and Renewable Energy, Madhya Pradesh has a total installed renewable energy capacity of 5,874.53 MW, with wind being the largest contributor at 2,844.29 MW (as of January 2023). Madhya Pradesh is one of the top locations in the country for installing solar power plants, since it receives high levels of solar radiation. Solar power has the second-highest installed capacity among renewables, at 2,774.78 MW. Bioenergy ranks third, with a total installed capacity of 131.75 MW. The remaining 123.71 MW is small-hydro capacity. In recent years, Madhya Pradesh has become known in the rooftop solar space for achieving record low tariffs by lowering the risk for rooftop developers, and providing power to Delhi Metro Rail Corporation through an open access agreement. Renewable Watch takes a look at recent developments, tenders and policies in Madhya Pradesh…
Recent projects and tenders
January 2023: Madhya Pradesh Urja Vikas Nigam Limited floated bids for approximately 1,110 MW of grid-connected solar projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan for feeder solarisation. At the same time, the Greenko Group announced that it would invest Rs 100 billion in setting up a pumped storage project in the Neemuch district of Madhya Pradesh.
December 2022: Madhya Pradesh State Tourism Development Corporation issued a request for proposal to set up electric vehicle (EV) charging stations at various facilities for 10 years.
November 2022: NTPC Renewable Energy invited bids for the supply of solar modules for 325 MW of solar projects in the Shajapur Solar Park, Madhya Pradesh. In the same month, SJVN Limited was awarded a contract to establish an 83 MW floating solar project.
October 2022: NTPC Vidyut Vyapar Nigam Limited called for domestic bids for setting up 21 MW of alternating current grid-connected solar capacity.
September 2022: Adani Green Energy Limited commissioned a 325 MW wind energy plant in Madhya Pradesh’s Dhar district. In the same month, Indore Municipal Corporation invited bids from engineering, procurement and construction contractors for the design, supply, installation, testing and commissioning of a 60 MW solar power project at Samraj and Ashukhedi villages.
August 2022: Satna Municipal Corporation invited bids to set up 10 EV charging stations at various locations across Madhya Pradesh.
July 2022: Rewa Ultra Mega Solar invited bids to construct 300 MW of floating solar projects at the Omkareshwar reservoir.
Future outlook
According to the Madhya Pradesh Renewable Energy Policy 2022, the state has a solar energy potential of 61 GW, a wind energy potential of 11 GW, and a biomass energy and small-hydro potential of 820 MW. In line with this, the state government has set ambitious investment targets for the sector. It plans to invest Rs 150 billion and Rs 500 billion in renewable energy production by 2024 and 2027, respectively. According to the Madhya Pradesh Renewable Energy Policy 2022, investments in the production of renewable energy equipment are expected to reach Rs 40 billion by 2024 and Rs 100 billion by 2027. By the end of financial year 2024, the state aims to produce 20 per cent of its electricity from renewable sources, 30 per cent by 2027 and 50 per cent by 2030. The state also intends to build a 10 GW renewable energy technology park by financial year 2027. Additionally, it plans to build 4 GW of renewable energy projects for exporting power by financial year 2024, and 10 GW by financial year 2027. By 2030, the policy intends all state-level government agencies to use green energy and have a net-zero carbon footprint. Fur-thermore, the state government has created incentives primarily for the renewable energy sector as part of its Industrial Promotion Policy. It is offering significant incentives to companies that produce renewable energy, as well as tailored packages for mega industries. These include exemption from electricity duty and energy development cess, reimbursement of state duty, land at concessional prices, remission of wheeling charges, and incentives for renewable energy equipment manufacturing.
Going forward, to further promote the growth of renewables, the state should continue to encourage private sector participation in project development by assuring ease of doing business, build a friendly regulatory environment by keeping open access charges stable and low, and improve the financial health of state distribution companies. Net, net, the state is well-positioned to foster the growth of renewable energy sources.
By Anusshka Duggal
