The Gujarat government on Thursday rolled out three major energy policies to move the state towards non-fossil fuel sources. Chief Minister Bhupendra Patel launched the Gujarat Integrated Renewable Energy Policy-2025, Gujarat Green Hydrogen Policy-2025 and Gujarat Pumped Storage Project Policy-2025. The policies will remain valid for periods ranging from 10 to 40 years, or until new policies are notified, reports Ahmedabad Mirror.
With these initiatives, the state aims to establish itself as a leader in green energy. Gujarat has set a target of more than 100 GW of renewable energy capacity by 2030, which would contribute significantly to India’s national goal of achieving 500 GW of non-fossil fuel capacity. The government estimates that the policies could generate over 20 lakh jobs, with a focus on creating centres of excellence and increasing women’s participation in the workforce.
To support project development, the state will allocate wasteland for renewable energy projects and offer incentives to encourage the production and use of clean energy. The Chief Minister will chair apex committees that will oversee the implementation of all three policies.
The government is targeting investments of more than Rs 5 lakh crore in renewable energy and green hydrogen, with the potential to create around six lakh jobs. Under the green hydrogen policy, Gujarat plans to set up production capacity of 3 million tonnes per year, supported by 30 GW of electrolyser capacity and 75 GW of renewable energy capacity. The state expects this to reduce the use of natural gas by at least 2 million metric tonnes annually and cut carbon dioxide emissions by about 5 million metric tonnes per year.
Companies investing in green hydrogen and renewable energy will be eligible for capital subsidies, reimbursement of grid charges, stamp duty waivers and support for infrastructure and green hydrogen vehicles. Small and medium enterprises using green hydrogen and city gas operators blending it into their networks will also receive incentives within defined limits.
Gujarat’s current demand for green hydrogen is estimated at around 1.3 million tonnes per year, mainly from refineries, steel and fertiliser units. This demand is expected to rise to nearly 2 million tonnes by 2030, strengthening the state’s role in India’s clean manufacturing and net-zero efforts.
To improve grid stability, the government is promoting battery energy storage systems. Grid-connected and co-located battery storage projects linked to solar, wind and hybrid plants will receive policy support.
In the wind energy sector, the state is allowing the repowering and upgrading of existing turbines. Measures include a 24-month extension period for repowering, waivers on transmission charges for unused capacity during the transition, priority access to grid connectivity and relaxed site norms. Gujarat is also supporting pilot projects in new areas such as ocean energy, geothermal energy, concentrated solar thermal power, building-integrated solar systems, agrivoltaics and vertical-axis wind turbines.
The policies also encourage rooftop and distributed renewable energy, private sector participation and start-ups, while linking job creation with skill development.
Under the pumped storage policy, Gujarat aims to become a national hub for energy storage. The state has set a target of 75 GWh of pumped storage capacity and investments of Rs 75,000 crore by 2035. Projects will receive incentives for up to 40 years, including exemptions from electricity duty on renewable energy used as input and relaxed water charges for certain project types.
Through these measures, the government aims to manage grid challenges arising from large-scale renewable energy, create green jobs and support local technology development. The state has set a long-term goal of developing 100 pumped storage projects by 2047.
