Month in a Minute: Top Headlines from the Indian Renewable Sector in February 2026

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					</table><p>Bharat Petroleum Corporation (<a href="https://www.bharatpetroleum.in/index" target="_blank" rel="noopener">BPCL</a>) has commissioned a 71 MW solar power project in Prayagraj, Uttar Pradesh, strengthening its renewable energy portfolio.</p>
<p>The power generated by the project will be supplied to BPCL’s refineries in Mumbai, Bina, and Kochi, helping reduce the company’s core refining operations&#8217; carbon footprint.</p>
<p>Spread across approximately 210 acres, the solar facility comprises approximately 129,000 solar modules, supported by 1,324 tons of structural steel and nearly 294 kilometres of cabling.</p>
<p>The project is connected to the grid through a 132 kV transmission line. It is expected to generate around 103.61 million units of green electricity annually.</p>
<p>With a focus on sustainable solutions, the company is developing a roadmap to become a net-zero energy company by 2040.</p>
<p>The company has nearly 226 MW of renewable energy projects in operation and an additional 100 MW of projects under construction. It also has a 5 MW green hydrogen project commissioned at its Bina refinery.</p>
<p>The company plans to achieve 10 GW of renewable energy portfolio by 2035.</p>
<p>It is progressing its biodiesel blending program and scaling up compressed biogas infrastructure across strategic locations.</p>
<p>BPCL is also establishing first and second-generation bio-refineries at Bargarh, Odisha. These facilities will process agricultural waste and surplus food grains into cleaner, domestically produced fuels, contributing to rural economic development and sustainable growth.</p>
<p>Last financial year, the company achieved a crucial milestone by <a href="https://www.mercomindia.com/bpcl-ntpc-solar-auction" target="_blank" rel="noopener">winning</a> its first-ever utility-scale solar bid for 150 MW from NTPC, further securing another 150 MW through the greenshoe option.</p>
<p>Earlier, BPCL <a href="https://www.mercomindia.com/bpcl-to-develop-green-hydrogen-and-compressed-biogas-projects" target="_blank" rel="noopener">announced</a> joint ventures with Sembcorp Green Hydrogen India and Bengaluru-based GPS Renewables to develop green hydrogen and compressed biogas projects, respectively. With Sembcorp, BPCL plans to develop, construct, and operate renewable energy projects and green hydrogen and its derivatives projects across India.</p>
<p>Last May, BPCL <a href="https://www.mercomindia.com/sulzon-and-integrum-bag-bpcls-100-mw-wind-projects" target="_blank" rel="noopener">awarded</a> Suzlon Energy and Integrum Energy 50 MW each of wind projects in Madhya Pradesh and Maharashtra.</p>


Bharat Petroleum Commissions 71 MW Solar Power Project in Prayagraj


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					</table><p>The <a href="https://up.gov.in/" target="_blank" rel="noopener">Uttar Pradesh government</a> aims to produce one million metric tons of green hydrogen annually by 2028 to replace the grey hydrogen used in its fertilizer and refinery industries. The current demand for hydrogen in the state is around 0.9 million metric tons per annum.</p>
<p>While green hydrogen, produced by splitting water molecules using renewable energy sources like solar or wind power, is a zero-emission fuel, grey hydrogen is derived from unabated fossil fuels like natural gas.</p>
<p>The government will provide incentives and financial support to develop the core infrastructure across the entire value chain of green hydrogen, according to the policy document posted on the website of the Uttar Pradesh New and Renewable Energy Development Agency (<a href="https://upneda.org.in/" target="_blank" rel="noopener">UPNEDA</a>), which will also act as the nodal agency for the program.</p>
<p>The project&#8217;s overall capital investment size will determine the subsidy level. The first five investments (barring the Meerut division) will receive financial incentives of up to 40% of the total investment. This subsidy is capped at ₹2.25 billion (~$27 million) per project per annum during the policy period.</p>
<p>&#8220;Booster&#8221; subsidies will also be provided for firms employing a certain percentage of female workers or a higher number of employees than the stipulated minimum amount. Additional booster subsidies can be availed if the production facility exports green hydrogen. An ecosystem booster subsidy can be availed if a certain percentage of input or raw material is sourced from Uttar Pradesh.</p>
<p>Additionally, for public sector undertakings, government land will be leased at the nominal rate of ₹1(~$0012) per acre per year for 30 years. Private investors, however, will have to pay the lease rate of ₹15,000 (~$181) per acre per year.</p>
<p>Green hydrogen projects that seek to set up dedicated solar energy units will be granted a maximum land allotment of 5 acres per MW of solar capacity installed, capped at 20 MW per kiloton of annual green hydrogen output capacity.</p>
<p>Additionally, to bring down the cost of green hydrogen production, two Centers of Excellence will be set up, and startups engaged in the production of green hydrogen will be incentivized.</p>
<p>Achieving this policy goal would contribute 20% towards India&#8217;s target of 5 million metric tons per annum, as outlined in its National Green Hydrogen Mission.</p>
<p>Recently, the Ministry of New and Renewable Energy (MNRE) <a href="https://www.mercomindia.com/mnre-pilot-implement-hydrogen-steel" target="_blank" rel="noopener">launched</a> pilot projects aimed at using green hydrogen to decarbonize the transport, steel, and shipping industries.</p>
<p>MNRE also <a href="https://www.mercomindia.com/mnre-incentives-green-hydrogen-production" target="_blank" rel="noopener">outlined</a> a framework to incentivize the annual production of 200,000 MT of green hydrogen.</p>


Uttar Pradesh Targets 1 Million Metric Tons of Green Hydrogen a Year by 2028

<p>The central government’s cabinet, headed by prime minister Narendra Modi,  approved the National Policy on Biofuels &#8211; 2018. Biofuels in India are of strategic importance as they augur well with the government’s ongoing initiatives, such as Make in India, Swachh Bharat Abhiyan, and Skill Development.</p>
<p>Biofuels offer great opportunity to integrate with the ambitious goal of doubling farmers’ income, import reduction, employment generation, waste-to-wealth creation. The biofuels program in India has  largely been impacted due to the sustained non-availability of domestic feedstock for biofuel production, which needs to be addressed. The National Policy on Biofuels will help change the trend.</p>
<p><strong>KEY HIGHLIGHTS</strong></p>
<ul>
<li>Biofuels have been categorized as “Basic Biofuels” &#8211; First Generation (1G) bioethanol and biodiesel,&#8221;Advanced Biofuels&#8221; &#8211; Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, and Third Generation (3G) biofuels, bio-CNG, to enable extension of appropriate financial and fiscal incentives under each category.</li>
<li>Sugarcane juice, sugar containing materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat, broken rice, rotten potatoes, unfit for human consumption for ethanol production can be utilized as raw materials.</li>
<li>Surplus food grains can be utilized to produce ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.</li>
<li>With a thrust on advanced biofuels, the policy indicates a viability gap funding program for 2G ethanol bio refineries of ₹50 billion in six years in addition to additional tax incentives and higher purchase price as compared to 1G biofuels.</li>
<li>Setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops will be encouraged.</li>
</ul>
<p>The government estimates one crore liter of E-10 saves ₹280 million of forex at current rates. The ethanol supply year 2017-18 is likely to see a supply of around 150 crore liters of ethanol, which will result in savings of over ₹40 billion of forex. One crore liter of E-10 saves around 20,000 ton of CO<sub>2</sub> emissions. For the ethanol supply year 2017-18, CO<sub>2</sub> emissions will be reduced to the tune of 30 lakh ton. By reducing crop burning and conversion of agricultural residues and wastes to biofuels, greenhouse gas emissions will be further reduced.</p>
<p>The addition of 2G bio refineries across the country will spur infrastructural investment in rural areas. One 100klpd 2G bio refinery can contribute 1,200 jobs in plant operations, village level entrepreneurship, and supply chain management.</p>
<p>To help tackle air pollution issues, the Ministry of Power has issued a <a href="https://mercomindia.com/cea-biomass-pellets-power-generation-thermal-plants/" target="_blank" rel="noopener">policy</a> that calls for using 5-10 percent of biomass pellets alongside coal for power generation in thermal power plants across the country in February.</p>
<p>A program to support promotion of biomass-based cogeneration in sugar mills and other industries was also <a href="https://mnre.gov.in/sites/default/files/schemes/scheme-Biomass-11052018.pdf" target="_blank" rel="noopener">announced</a> this month by the Ministry of New and Renewable Energy’s biomass power division.</p>
<p>Image credit: By Steve Jurvetson (Flickr), via Wikimedia Commons</p>


Cabinet Approves National Policy on Biofuels

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