The Indian renewable energy sector is the second most attractive renewable energy market in the world.
1 The country ranks fourth in the world in terms of total installed wind power capacity.
2 India added 11.788 GW of power generation capacity from renewable sources between January – November 2017. The focus of Government of India has shifted to clean energy after it ratified the Paris Agreement. With the increased support of government and improved economics, the sector has become attractive from investors perspective and India ranked second in Renewable Energy Attractive Index 2017.
3. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.
Total installed renewable energy capacity in India touched 62.846 GW as of December 2017, which is around 18.8 per cent of total energy capacity of the country (333.5 GW).
During December 2017, total installed wind power capacity in the renewables mix* stood at 32.85 GW (52.27 per cent), while solar power capacity was 17.05 GW (27.13 per cent). Total solar capacity in India is expected to be 8 per cent of global solar capacity by 2035.
With a potential capacity of 363 gigawatts (GW) and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.
Government of India Initiatives
The Ministry of New and Renewable Energy (MNRE) has taken several steps clean energy future for the 'New India'. The largest renewable capacity expansion programme in the world is being taken up by India. The Government is aiming to increase share of clean energy through massive thrust in renewable. Core drivers for development and deployment of new and renewable energy in India have been Energy security, Electricity shortages, Energy Access, Climate change etc.
A capacity addition of 27.07 GW of renewable energy has been reported during the last three and half years under Grid Connected Renewable Power, which include 12.87 GW from Solar Power, 11.70 GW from Wind Power, 0.59 from Small Hydro Power and 0.79 from Bio-power. Confident by the growth rate in clean energy sector, the Government of India in its submission to the United Nations Frame Work Convention on Climate Change on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost International Finance including from Green Climate Fund. As on 30.11.2017, Solar Energy Projects with an aggregate capacity of over 16611.73 MW including 863.92 MW from Solar Roof Top projects has been installed in the country.
The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc. The National Solar Mission aims to promote the development and use of solar energy for power generation and other uses, with the ultimate objective of making solar energy compete with fossil-based energy options. The objective of the National Solar Mission is to reduce the cost of solar power generation in the country through long-term policy, large scale deployment goals, aggressive R&D and the domestic production of critical raw materials, components and products. Renewable energy is becoming increasingly cost-competitive as compared to fossil fuel-based generation. In order to achieve the renewable energy target of 175 GW by the year 2022, the major programmes/ schemes on implementation of Solar Park, Solar Roof Top Scheme, Solar Defence Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal Tops, Solar Pump, Solar Rooftop etc have been launched during the last two years.
Various policy measures have been initiated and special steps taken in addition to providing financial support to various schemes being implemented by the Ministry of New and Renewable Energy (MNRE) for achieving the target of renewable energy capacity to 175 GW by the year 2022.
- These include, inter alia, suitable amendments to the Electricity Act and Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO)
- Setting up of exclusive solar parks
- Development of power transmission network through Green Energy Corridor project
- Guidelines for procurement of solar and wind power though tariff based competitive bidding process
- National Offshore Wind Energy Policy notified
- Repowering of Wind Power Projects
- Standards for Deployment of Solar Photovoltaic systems/ devices
- Orders for waiving the Inter State Transmission System charges and losses for interstate sale of solar and wind power for projects to be commissioned by March 2019
- Identification of large government complexes/ buildings for rooftop projects
- Provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities
- Amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher Floor Area Ratio
- Infrastructure status for solar projects
- Raising tax free solar bonds
- Providing long tenor loans
- Making roof top solar as a part of housing loan by banks/ NHB
- Incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory and raising funds from bilateral and international donors as also the Green Climate Fund to achieve the target