The Department of Energy, Government of Bihar has issued the Bihar Policy for Promotion of Bihar New and Renewable Energy Sources 2025, superseding its 2017 policy. The new policy aims to harness 23,968 MW of renewable energy (21,653 MW of utility-scale projects, 1,975 MW of distributed renewable energy, 340 MW of offgrid projects) and 6,100 MWh of storage capacity by financial year 2029-30. It applies to solar, wind, hydro, energy storage, waste-to-energy, green hydrogen, geothermal, and other technologies recognised by the Ministry of New and Renewable Energy and Bihar Renewable Energy Development Agency (BREDA). The operative period is five years, with incentives applicable for up to 25 years from commissioning. BREDA, Bihar State Hydroelectric Power Corporation Limited, and Bihar State Power Generation Company Limited are designated as the state nodal agencies for renewable, hydropower, and pumped storage projects, respectively. Eligible entities include registered companies, start-ups, government bodies, consumers of discoms, and individuals, submitting project proposals via a single-window system.
The policy provides incentives such as 100 per cent electricity duty exemption for 15 years from the date of commissioning, 100 per cent reimbursement on SGST for five years, full reimbursement of stamp duty on industrial land, and exemption from transmission and wheeling charges for 15 years. Projects with storage attract 20-year exemptions. Open access is guaranteed for 25 years or the project’s life, whichever is earlier. Land conversion charges are fully reimbursed, and the policy specifies no free power or local area development fund charges for small hydro projects. Renewable energy generating entity will retain the entire proceeds of carbon credit, from an approved clean development mechanism project under the United Nations Framework Convention on Climate Change or any other mechanism developed by the central government. EV charging stations powered by renewable energy will receive land at 50 per cent concessional rates for the first 1,000 stations or 50 MW of capacity, whichever is higher, along with exemption from transmission and wheeling charges for 25 years.
The Bihar Renewable Energy Development Fund has been established to support financial incentives, research and development, skill development, and infrastructure. A governance structure with district, state-level screening committees, and a state-level empowered committee will manage project approvals based on capacity thresholds. Transmission and distribution infrastructure development costs up to 10 km are covered by state utilities. Minimum generation compensation is mandated for grid failures affecting renewable energy projects, with penalties for non-compliance. The policy also mandates renewable energy use in specific building categories, encourages convergence with other government schemes, and facilitates land allotment through Bihar Industrial Area Development Authority and other agencies. Project developers must submit detailed proposals with a processing fee ranging from Rs 1,000 to Rs 50,000 per MW, and up to Rs 500,000 per proposal.
