As India strives to be a key player in clean energy generation, Madhya Pradesh aims to transform into a major destination of renewable energy generation by using its rich natural source base.
To explore possibilities and utilise existing opportunities, the state will organise its 7th edition of Madhya Pradesh Global Investors Summit 2023 on 11 January. It is a flagship investment promotion event of Government of Madhya Pradesh based on the theme of Renewable Energy. The session will include industry captains, sector experts and government officials, to discuss future of Renewable Energy and explore investment opportunities in the state.
Renewable energy, also known as clean energy, is typically produced from natural resources that are constantly replenished. Due to innovation in ways of harnessing the wind and solar energy, decreased pollution, and low maintenance costs; governments in both developing and developed nations are encouraging production of renewable energy.
The market for renewable energy is anticipated to increase to $1977.6 billion by 2030, with a CAGR of 8.4%. Around 7% of the world’s energy needs are met by renewable energy sources.
The Asia-Pacific region accounts for major share of the global market because of the increasing demand. India has aimed to reach net-zero greenhouse gas (GHG) emissions by the year 2070 and by 2030 India will take its non-fossil power capacity to 500 GW.
India is world’s 4th largest country with installed capacity of 147 GW, world’s 3rd largest consumer of electricity and world’s 3rd largest renewable energy producer with 40% of energy capacity installed in the year 2022 (160 GW of 400 GW) coming from renewable sources.
The government’s increased backing and the improvement in the economy have made the sector more appealing to investors. Renewable energy will be crucial as India attempts to satisfy its own energy needs, which are anticipated to total 15,820 TWh by 2040.
Madhya Pradesh – Tapping the natural resources potential
Madhya Pradesh has a rich natural resource base with enormous possibilities for renewable energy generation. The topographic and climatic conditions of the State favour the development of wind and solar energy. According to Ministry of New & Renewable Energy, the State has a potential for 820 MW of small hydro, 11 GW of wind, 61 GW of solar, and 11 GW of biomass energy. The State is well-positioned to promote the development of renewable energy. MP receives one of the highest levels of solar radiation, making it amongst the best States in the country to set up solar power plants.
The fact that the state has huge rivers like the Tawa, Narmada, Chambal, and Tapti flowing through it, providing substantial hydro potential, is one of the state’s key advantages in terms of natural resources for setting renewable energy resources. It receives a lot of sunlight and has solar potential of up to 6.2 KWh/sq.m./day. Nearly 3000 MW of gross wind potential exists in MP. Most districts in the state offer the possibility of using biomass, which has a theoretical capacity of about 1400 MW.
The state government intends to create a comprehensive ecosystem and became the first state to launch Technology compatible Renewable energy policy to harness the State’s full potential for renewable energy.
The state government has dedicated incentives for renewable energy sector under its Industrial Promotion Policy that provides lucrative incentives to renewable energy producing companies along with customized packages for mega industries. As a part of its incentives policy state offers exemption in electricity duty and energy development Cess, reimbursement of state duty, land on concessional rates, waiver of wheeling charges and incentives for RE equipment manufacturing.
Madhya Pradesh has set an ambitious goal to supply neighbouring states with 20,000 Megawatts (MW) of green electricity by 2030 from renewable sources, including the construction of a solar power plant in the Chambal region. The state presently generates 5,500 MW of green energy from a variety of renewable energy sources and a major part is sourced through solar energy.
In a first of its kind, a Solar power project of 1.7 MW at Bina, Madhya Pradesh by Indian Railways in collaboration with Bharat Heavy Electricals Limited (BHEL) is installed wherein, solar electricity will be directly fed into the railway engines.
Madhya Pradesh is part of Green Energy Corridor. It has a total renewable energy potential of approximately 30 GW from different sources. To tap this potential, state has proactively supported private participation in development of projects by ensuring “Ease of Doing Business” in the state, supportive policies, regulatory environment, support from state power utilities and other state departments.
Major player in state are Mahindra Susten, Sprng Energy, Athena, ACME Solar, Avaada, Greenko, O2 Power Private Limited, NTPC Limited, Solar Arise, Tata Power, Inox Wind, Kshema Power and Infrastructure Company Pvt Ltd.
As per World Bank and the Department for Promotion of Industry and Internal Trade (DPIIT), Madhya Pradesh has achieved “Achievers” category in EODB. The state government has undertaken several initiatives for the implementation of key reforms like, ‘start your business in 30 days’ for the benefit of the industries and is also activity promoting the Renewable energy in the state.
The investor-friendly policy, transparency and suitable environment for business has made Madhya Pradesh an attractive investment hub for major domestic and global players.