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Bihar Unveils Ambitious Renewable Energy Policy to Attract Investors and Boost Jobs

The Bihar government has launched the Bihar Renewable Energy Policy 2025, aiming to transform the state into a clean energy hub by supporting 23.97 GW of renewable energy (RE) and 6.1 GWh of energy storage capacity by FY2030. Unveiled just months ahead of the upcoming state elections, the policy offers a highly competitive package of incentives to attract developers and boost employment.

Key benefits include 100% waiver of state GST, 15-year electricity duty exemption, 25-year open access, and zero contribution to local area development funds. Additionally, government land will be offered at a 50% concessional rate for the first 1,000 EV charging stations or up to 50 MW capacity, whichever is higher.

The policy ensures "Must Run" status for RE projects, guarantees minimum generation compensation, allows energy banking, and includes a robust payment security mechanism for sales to government departments. State utilities will also bear transmission and distribution costs up to 10 km.

With a focus on R&D, 5% of the RE budget will be allocated to innovation, and developers can claim carbon credits under UNFCCC or national programs. Bihar Energy Secretary Manoj Kumar Singh called the policy “one of the most attractive in the country,” aimed at positioning Bihar at the forefront of India’s green energy revolution.