Maharashtra state in India has approved a new renewable energy policy, under which the state plans to achieve installed capacity of 14,400 MW within the next five years bringing the total to 21,100 MW to the state.
The Energy policy looks to invest Rs41.5bn ($651.27m) which will be implemented through public-private partnerships and captive power projects.
Maharastra Power Minister Chandrashekar Bawankule said: "The policy aims at achieving the installed capacity of 7,500 MW solar energy, 5,000 MW of wind energy, 1,000 MW of biogas based co-generation, 400 MW small hydro, 200 MW of industrial waste and 300 MW of agriculture waste-based products."
The state government has also decided to reduce the number of clearances required for such projects as well as ease consent norms to facilitate smoother flow of the projects.
It also emphasised that there will be electricity duty exemption for ten years along with several other capital subsidies.
The Indian Express cited a source familiar with the matter as saying that the increasing focus on renewable energy will not result in higher power tariff, instead the cost of renewable energy is expected to drop with time.
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By GlobalDataThe renewable energy projects are expected to gain deemed industry status to avail tax breaks and other benefits while it will allow them to sell energy directly to consumers.
The current installed capacity of renewable energy in Maharashtra is 6,700 MW, and the share of renewable energy is around 9%, which the state aims to bring up to 15%.
