Please click here to download the Prism as a PDF.
Amendment to Rajasthan Integrated Clean Energy Policy, 2024
The Government of Rajasthan, vide notification[1] dated August 17, 2026 (“Amendment”), amended the Rajasthan Integrated Clean Energy Policy, 2024 (“Principal Policy”). The latest Amendment to the Principal Policy introduces key provisions on transfer of registered capacity of Renewable Energy (“RE”) park and revises the provisions governing land allotment for RE and green hydrogen projects, levy of registration charges on Battery Energy Storage System (“BESS”), and timelines for utilising grid connectivity approval.
Amendments to the Principal Policy
Transfer of registered capacity of RE parks
The Amendment allows RE park developers to transfer all or part of the registered capacity of the RE park to their holding company, subsidiary, fellow subsidiary, or ultimate holding company. The developer must first obtain the consent of Rajasthan Renewable Energy Corporation Limited (“RRECL”) and pay 50% of the applicable registration charges.
Revised land allotment framework for RE and green hydrogen projects
The Amendment expands land allotment eligibility for RE parks, RE projects, green hydrogen projects and green hydrogen parks, with or without storage, for projects of not less than 1,000 (one thousand) Megawatt (“MW”). This revised land allotment now makes developers that do not hold central transmission utility/State Transmission Utility (“STU”) grid connectivity approval eligible for land allotment. Once the developer deposits land security of INR 1,00,000 (Indian Rupees one lakh) per MW, RRECL will recommend the project to the Revenue Department. The Revenue Department will then issue the land allotment order, granting the developer advance possession rights under the applicable land revenue rules. On commissioning of the project, the State Government will refund the security proportionally, based on RRECL’s recommendation.
Existing applicants may either migrate their applications to the allotment provisions under the Amendment or withdraw them. If an applicant withdraws, RRECL will refund the security amount to the developer.
Non-compliance with the Principal Policy or any applicable land allotment rules may result in withdrawal of land allotment and forfeiture of the security furnished.
Revised maximum land area limits
The Amendment also revises the maximum land area that may be allotted to a developer or power producer for different technologies, such as crystalline technology, thin film/amorphous technology and solar thermal.
The maximum land limit is 2 (two) hectares per MW for solar and wind projects, up to 2.5 (two point five) hectares per MW for wind-solar hybrid projects, and about 3 (three) hectares per MW for solar thermal projects (depending on the plant load factor). In all cases, the developers must set aside 10% of the allotted land for tree plantation. If a project includes a storage system, the Revenue Department may allot additional land under its rules.
Registration charge exemptions for BESS
To encourage battery storage alongside RE, the Amendment exempts developers from a portion or all of the registration charges payable to the RRECL on RE capacity upon installation of BESS components. Any new RE project proposed to be set up with a BESS at STU/Distribution Company (“DISCOM”) network with a minimum capacity of (X/2) MW-hour (“MWh”) (where ‘X’ is the installed RE project capacity) will be exempted from payment of 50% of the RE registration charges applicable to the RE capacity. If such BESS capacity exceeds (X/2) MWh, the developer may be exempted from payment of up to 100% of those charges on a pro-rata basis, depending on the additional storage capacity installed.
Registration charges for Pumped Storage Plants and BESS projects
The developers of Pumped Storage Plants (“PSP”) must pay RRECL a non-refundable registration charge of INR 10,00,000 (Indian Rupees ten lakh) per project, irrespective of the PSP’s capacity. The developers of BESS projects, whether standalone or combined with an RE project, must pay registration charges depending on the BESS capacity of such BESS project.
Power evacuation utilisation timeline
The developers and power producers who receive grid connectivity approval from the DISCOMs or Rajasthan Rajya Vidyut Prasaran Nigam must start using the connectivity within 2 (two) years from the date of grant of such approval. If they do not, the granting authority may reassign the approval to other developers on a priority basis.
Conclusion
This Amendment is a step towards expeditious rollout of the RE in Rajasthan. It offers incentives for battery storage and sets firm deadlines for using grid connectivity aimed at improving regulatory discipline, streamlining land allotment and incentivising RE-integrated storage to help guarantee reliable power supply. For developers, the intra-group capacity transfer route is expected to add flexibility to project structuring and the exemption on charges may boost further investment for BESS and PSP Projects, while the 2 (two) year connectivity utilisation deadline and revised land area caps place a premium on disciplined project planning and timely execution of the projects.
This Prism has been prepared by:
|
M. Arun Kumar |
Kopal Kesarwani |
Palak Dhingra |
|
For more details, please contact km@jsalaw.com.
[1] Reference No. F.20(40) Energy/2025/04269)
