This will be a manifold increase from the 2,500MW renewable energy target in the previous policy, which was approved in 2008. Maharashtra already has 6,155MW installed capacity in green energy.
"We had prepared a renewable energy policy and it was put before the cabinet. However, the union minister said the state is among the seven states with a major solar potential... and hence, the target should be increased to 25,000MW," said chief minister Devendra Fadnavis on Wednesday.
He added that since the state had said it could not purchase this additional power, the Centre had said they could buy it or the electricity could also be sold in the open market.
The Centre plans to develop 175 gigawatts (GW) of renewable energy capacity by 2022, of which 100GW will be solar energy. One GW is equal to 1,000 MW.
The Maharashtra government has been announcing policies from 1996 onwards to promote generation of power through clean and non-conventional energy sources. The Maharashtra Energy Development Agency promotes the development of non-conventional energy resources.
The power generated under this proposed policy can be sold by developers through competitive bidding but they will have to first sell this to any distribution companies in the state to meet their renewable purchase obligation, which is a target in terms of a certain percentage of power to be sourced from green sources.