A Comprehensive Look At Rajasthan Integrated Clean Energy Policy, 2024

30-Apr-2025 / by Enernew

Comparison of Captive and Third-Party PPAS

With an ultimate goal of promoting renewable energy and sustainable development, Rajasthan has introduced the Integrated Clean Energy Policy, 2024, creating a way for India’s green and energy-efficient future. The policy is designed to transform Rajasthan’s energy landscape with a great focus on using natural resources and meeting the long-term renewable energy goals.

Effective until March 29, 2029, the policy establishes a unified strategic approach to renewable energy advancement between solar and wind power, along with hybrid systems, biomass and waste-to-energy assets, energy storage and green hydrogen initiatives. Backed by incentives and a strong regulatory roadmap, this policy sets the stage for a transformative shift in Rajasthan’s energy landscape.

A Vision Rooted in Sustainability and Growth

The policy's main goal focuses on speeding up renewable energy (RE) adoption through innovation, along with encouraging sector investment and infrastructure development. The policy implements a systemic method which unifies various clean energy technologies alongside their supporting sectors, including manufacturing alongside transmission infrastructure development and research and development initiatives, alongside job creation.

One of the most ambitious aspects of the policy is its target of achieving 125,000 MW of renewable power capacity by 2029–30. This includes:

Solar Power: 90,000 MW
Wind and Hybrid Power: 25,000 MW
Hydro, Pumped Storage, and Battery Energy Storage Systems (BESS): 10,000 MW

This target not only reflect the state’s commitment to efficiently expand its capacity but align with India’s long-term renewable energy goals of achieving net zero emissions

Strategic Focus Areas

The Rajasthan Integrated Clean Energy Policy emphasizes several key areas to ensure a balanced and efficient energy ecosystem:

Encouraging the blending of solar, wind, hybrid, and storage solutions to meet varying demand patterns.
Infrastructure support and incentives to support the emerging green hydrogen economy
Promoting advanced storage solutions to handle intermittency in renewable energy generation.
Transmission infrastructure to ensure the network is capable of handling large-scale RE integration.
Focusing on research and development to encourage innovation and technological advancements in the renewable energy space.

Incentives Under Rajasthan Investment Promotion Scheme (RIPS), 2024

To attract private investments and support long-term sustainability, the policy is interlinked with the Rajasthan Investment Promotion Scheme (RIPS), 2024, which offers an extensive package of incentives for different types of clean energy projects.

Renewable Energy Power Projects

Projects under this category are eligible for

Electricity Duty	100% exemption for 7 years
Stamp Duty & Land Conversion Charges	75% exemption & 25% reimbursement
Mandi/Market Fee	100% reimbursement for 7 years
PCB Fees	Waiver of PCB fees (for Consent to Establish and Operate)
Banking, Wheeling & Transmission	Exemptions for Captive Use
Water Availability	From IGNP canal or nearest source for solar power plants

Biomass and Waste-to-Energy Projects

Electricity Duty	100% exemption for 7 years
Stamp Duty & Land Conversion Charges	75% exemption & 25% reimbursement
Market Fee	100% reimbursement for 7 years
PCB Fees	Waivers to obtain Consent to Establish and Operate certification
Land-related Assistance	For biomass, CBG, bio-coal and bio-ethanol projects at subsidized rates & refundable deposits

Eligible units are required to commission their projects within 36 months of approval, ensuring timely execution.

Green Hydrogen Projects

Option 1: SGST reimbursement for 7 years (up to ₹15 crore/year)
Option 2: Capital subsidy over 10 years (10–20%, depending on area and scale)
Option 3: Turnover-based incentive (1–1.4% of net sales turnover)

Additional benefits include

Interest Subvention	5% interest subvention on term loans for plant and machinery (up to 2.5% of investment)
Electricity Duty	100% exemption for 7 years
Wheeling & Transmission	50% waiver on wheeling and transmission charges
Market Fee	100% reimbursement for 7 years
Stamp Duty & Land Conversions	75% exemption and 25% reimbursement
Land Allotment	Priority land allotment for green hydrogen units using brine or treated wastewater
Cross-Subsidy Surcharge Waiver	Waiver for energy drawn from captive solar/wind plants

What makes the Rajasthan Integrated Clean Energy Policy stand out is its holistic approach. It is not just a collection of incentives but a vision to develop an ecosystem. With benefits on land, water availability, and infrastructure, it facilitates sustainable development, and the alignment with central government schemes like MNRE’s financial assistance adds to its strength.

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Source Link: EY