Renewable Energy Policy in

India

By:
Vinay Kumar (PSM 016)
Imran Khan (PSM 006)
Sagar Sahare (PSM 014)

Introduction
Energy Policy is the manner in which a given
entity (often governmental) has decided to
address issues of energy development including
energy production, distribution and consumption.
An energy policy establishes and validates top
managements commitment to energy
performance improvement.

Renewable Energy
Definition: An energy resources that is naturally regenerated over a short time
scale and derived directly from the sun or form other natural movements and
mechanisms of the environment. Renewable Energy is energy which can be obtained
from natural resources that can be constantly replenished.

Types:

Bio energy

Ocean Energy

Wind Energy

Hydropower

Geothermal Energy

Solar Energy

Overview of the Renewable Energy Sector in

India
Renewable Capacity contributes about 12.3% of the total
installed capacity in the country (CEA, 2013)
Around 97% of the installed capacity is grid-connected and
off-grid power constitutes a small share (MNRE, 2013)
Globally, India ranks sixth in terms of renewable electric
power global capacity (REN 21, 2013)
Growth rate of renewable energy is 22% over the last decade
2002-2012
The Government of India has projected capacity addition of
72,400 MW by end of the Thirteenth Plan (2022), of which
solar is expected to contribute 28%

Plan wise growth of the Renewable

Energy in India

Planned Growth of the Renewable Energy

Sector

ed Power from Renewable Energy 11th Plan Achieved and 12th Plan Targe
Wind

Solar

Small
Hydro

Biomas Waste
s

Total

Installed
Energy in
MW under
the 11th
Plan

10,260

940

1,419

1,996

46

14,661
Target
(12,230)

Proposed
target in
MW for RE
under the
12th Plan

15,000

10,000

2,100

2,000

700

29,800

Source: Govt. of India, MNRE

Legal and Institutional framework

The Electricity Act 2003: it is the key legislation which

guides the development of renewable energy in India

The Electricity Act 2003 mandates the SERCs to promote

generation of electricity from renewable sources of energy
by providing suitable measures for connectivity with the
grid and sale of electricity to any person.

The National Tariff Policy, 2006, directs SERC to fix certain

minimum percentage of renewable power

At the central level, the Ministry of New and Renewable

Energy (MNRE) is the nodal ministry of the Govt. of India.

Policies
1. Strategic Plan for New and Renewable Energy
Sector for the period of 2011-17
Four Steps for Developing the
Strategy

1.1 SMART Targets for 2011-17

Grid Interactive Renewable Power generation from mainly the following resources:
1. Solar Power
2. Wind Power
3. Biomass power
4. Small Hydro power

Year-wise targets for Grid Interactive RE Power for the

period 2011-17 ( in MW)

1.2 Aspirational Goals for Renewable Energy

Applications
Quantification of the Aspirations for grid connected Renewable
Power
Aspirational goals for Decentralized Renewable Energy Applications
Decentralised Solar Energy System
Rural electrification through renewable energy
Green Buildings: Almost 40% of the total energy is utilized in the
building sector. A green building designed through solar passive
concepts and including active renewable energy systems can save
substantial conventional energy.

Renewable energy based cooking systems

To cover at least 1000 solar cooking systems by 2022
To initiate research into various solar cooling applications
Potential savings of conventional fuel and electricity

1.3 Strategic Policy for 2011-17

Promote concept of small power plants at tail-end of grid for both

solar and biomass and developing financial support structures
Development of entrepreneurship for rural electrification through
biomass waste, rice husk, solar, etc. and enabling availability of
banks/grant funds
Incremental improvements in technologies for solar cooling and
cooking
Identifying niche areas for application of RE technologies and
reducing consumption of conventional energy
Developing new financial instruments including risk guarantee
fund
Capacity building and awareness generation in Green Building and
campuses
Develop pilot projects for off-shore wind generation.
Promoting energy plantations of fast growing species of
bamboo/other trees to provide feedstock for small capacity
biomass power plants
Pursue the compliance of renewable energy purchase obligation

2. National Policy on Biofuels

The policy aims at mainstreaming of biofuels and envisions a
central role for it in the energy and transportation sectors of the
country in coming decades
Intervention and enabling mechanisms

Plantation of trees bearing non-edible oilseeds

Processing
Distribution and Marketing of Biofuels
Financing
Financial and Fiscal Incentives
Research and Development and Demonstration
Quality Standards: Development of test methods, procedures and protocols
International Cooperation
Import and Export of Biofuels
Awareness and capacity Building
The role and active participation of the States in the planning and
implementation of biofuel-programmes

3. Solar Policies in India State Wise Targets

4. Jawaharlal Nehru National Solar Mission

(JNNSM)
The JNNSM was launched on the 11th January,
2010
It aims the ambitious target of deploying 20,000
MW of grid connected solar power by 2022 in the
country through:
Long-term policy
Large scale deployment Goals
aggressive R&D and
Domestic production of critical raw materials,
components
and products, as a result to
achieve grid tariff policy by 2022

5. Institutions & Agencies established by

Govt. of India

National Institute of Solar Energy (NISE), an autonomous

institution of MNRE is the national R&D institution in the field of
Solar Energy

National Institute of Wind Energy (NIWE) has been established in

Chennai in the year 1998, in the field of Wind Energy.

Sardar Swaran Singh National Institute of Renewable Energy

(SSSNIRE) in Jalandhar, Punjab

Alternate Hydro Energy Centre (AHEC) established in IIT Roorkie

with the aim of power generation through the development of
Small Hydropower Projects (SHPs)

The Indian Renewable Energy Development Agency (IREDA)

Solar Energy Corporation (SEC) of India

6. Other Support Programmes & Initiatives

Information and Public Awareness Programme

Special Area Demonstration Project Programme
Human Resource Development Programme
Planning and Coordination
Seminar and Symposia
Technology Information Forecasting, Assessment and
Databank (TIFAD): It aims to create computerization and IT
facilities for the ministry Headquarters, its regional offices
and the Solar Energy Centre.
Programmatic Clean Development Mechanism (CDM)
projects in Renewable Energy Area
Target of 100,000 MW solar & 60,000 MW wind power By
2022.
10 Lakh Crore Investment in Renewable next strategic plan.

Challenges of Capacity Addition in the

Renewable Energy Sector

Financial Constraints
High installation costs
Unpredictability of future returns
RE projects might see less attractive for investment
Technical Constraints
Present technologies becomes less efficient as better technologies
become available in the future
Specific conditions of the installation location must be guaranteed
Policy Constraints
Adequate Subsidy Support
The implementation of the single window clearance system for small
scale entrepreneurs
The land acquisition process for renewable energy installations, which
generally require vast areas, is both complex and time consumeng.

Strength and Weaknesses of the Renewable

Energy Sector in India

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