Bihar launches Renewable Energy Policy 2025 to drive green growth

New Delhi: In a major leap toward sustainable development, the Bihar government on Friday launched the Bihar Renewable Energy Policy 2025, a comprehensive framework aimed at accelerating renewable energy adoption, drawing large-scale investments, and transforming the state into a green energy hub.

Spearheaded by Chief Minister Nitish Kumar, the policy sets Bihar on a strategic path to contribute to India’s Net Zero target by 2070.

With a focus on decarbonization, innovation, and inclusive growth, it envisions Bihar as a regional leader in clean energy.

“This is among the most progressive energy policies in India,” said Manoj Kumar Singh, Energy Secretary, Government of Bihar. “With the free ISTS regime ending, now is the time for investors to act. Bihar is offering one of the most attractive policy environments in the country.”

The policy promotes a diversified portfolio of renewable projects and emphasizes the use of advanced technologies in both generation and storage. It also aims to enhance local manufacturing, foster innovation through dedicated R&D, and encourage inclusive stakeholder participation.

Designed to be a catalyst for socioeconomic transformation, the policy highlights employment generation, skill development, and public awareness as core goals. A minimum of 5% of the renewable energy budget is earmarked for research and innovation.

To attract developers, Bihar is offering an extensive package of incentives:

(1) 100% reimbursement of SGST, land conversion fees, and stamp duty.

(2) 15-year electricity duty waiver.

(3) 25-year long-term open access and exemption from wheeling and transmission charges.

(4) State utilities to fund transmission infrastructure up to 10 km.

Projects will be granted “Must Run” status, technology-specific feed-in tariffs, energy banking options, and payment security mechanisms.

Developers will also have priority access to government land and eligibility for carbon credits.

Crucially, the Central Electricity Authority estimates Bihar will need to procure 23 GW of renewable energy by 2029–30—providing developers with a guaranteed market. With its forward-looking approach, the Bihar Renewable Energy Policy 2025 sets the stage for a cleaner, greener, and economically vibrant future.