Renewable Energy

  • India stands at 4th position for overall installed renewable energy capacity in the world.22
  • India is among the top three nations in the world which are leading the global renewable energy growth. 2
  • India is reaching the top five countries of the world in terms of new and renewable energy.
  • In December 2019, wind power installed capacity stood at 37.5 GW.The installed solar energy capacity has increased by over 15 times and stands at 41.09 GW.
  •  India stands at 4th position in the world in terms of installed RE capacity, 5th in solar and 4th in wind in terms of installed capacity.
  • Installed Renewable Energy Capacity is 100 GW. 
  • India is Already having 39% of our installed capacity from non-fossil based sources. By 2022 we will reach our target of 40%.
  • In the last 7 years, over US$ 70 billion investment has been made in renewable energy in India.
  • India third-largest solar installed capacity in the world.
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation, for which capacity stands at 9.8 GW as of December 2019. 3
  • A total of 643.66 MW of Renewable Energy capacity was added, taking the cumulative installed RE capacity to 95.66 GW as of May 31, 2021. This includes 41.09 GW of solar capacity, 39.44 GW of Wind capacity, 10.34 GW of Biopower and 4.79 GW of Small Hydro capacity. .21
  • The capacity of renewable sources of power in 2020 is: - Wind power 43.3%, Solar power including rooftops (39.8%) and Biomass power (11.2%).
  • India has achieved a cumulative installed renewable energy capacity (excluding large hydro) of 92.54 GW out of which 5.47 GW was added in the period April 2020 till January 2021.
  • India now in 5th Global Position for overall installed renewable energy capacity.
  • World's largest renewable energy expansion programme is of 175 GW till 2022.
  • Government of India had set a target of 1,75,000 MW installed capacity from renewable sources by the year 2022 which includes 1,00,000 MW from Solar, 60,000 MW from Wind, 10,000 MW from Biomass and 5000 MW from Small Hydro.
Reasons to Invest
  • Economic growth, increasing prosperity, a growing rate of urbanization and rising per capita energy consumption is contributing to increasing demand for energy in the country.
  • The National Solar Mission was launched in 2010. The objective of the mission is to establish India as a global leader in solar energy. The target of the National Solar Mission has been up-scaled to 100 GW from 20 GW of grid-connected solar power by 2022. 3
  • India has a wind potential of more than 300 GW (at hub height 100 meters), the solar potential of ~750 GW, assuming 3% wasteland is made available, Small Hydro potential of ~ 20 GW, and Bio-energy potential of 25 GW. 3
  • As per the Paris Accord on Climate Change, the Government of India has set a target of adding 175 GW of renewable power by 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydropower. This will offer massive investment opportunities across the value chain. This has further extended to 450 GW by 2030. 
  • India aims to achieve 40% of installed power generation capacity from non-fossil fuel sources and reduce emission intensity of GDP by 33-35 % from 2005 level by 2030. With the accomplishment of these ambitious targets, India will become one of the largest Green Energy producers in the world, surpassing several developed countries.4
  • Solar Power tariff reduced by more than 75% using plug and play model.
  • India submitted its Intended Nationally Determined Contribution (INDC) to the UNFCCC, on its goal of installing 175 gigawatts (GW) of renewable power capacity by 2022 by setting a new target to increase the country’s share of non-fossil-based installed electric capacity to 40 per cent by 2030.10
  • MNRE issues an issuance of a Concessional Custom Duty Certificate (CCDCs) for setting up projects for the generation of Compressed biogas using Urban and Industrial Waste of Renewable Nature.
  • Emission reduction of 28% over 2005 levels, against the target of 35% by 2030 already achieved by India.
  • India will produce more than three times nuclear power and it is expected to reach 22,480 MW by the year 2031, from the current 6780 MW as more nuclear power plants are also planned in future.

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Recent Announcements

22nd October 2021: International Solar Alliance closes with a promise to achieve USD 1 tn global in solar investments by 2030 and launches Green Grids Initiative-One Sun One World One Grid

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20th October 2021: Power and NRE Minister calls upon the  world to work together  to make energy access available to all using solar and renewable energy

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09th September 2021: Union Minister for Power and MNRE, Shri R.K Singhmeets with Mr. Dan Jørgensen, Danish Minister for Climate, Energy and Utilities to further engagement in Renewable Energy, especially offshore wind and green hydrogen.

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06th September 2021: IREDA signed an MoU with the Tamil Nadu Generation & Distribution Corporation Limited (TANGEDCO), for providing its technical expertise in developing Renewable Energy projects and fundraising.

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24th August 2021: Ministry of New and Renewable Energy launches activities on the eve of celebration of Azadi Ka Amrit Mahotsav

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The electricity generation during the month of September 2020 from renewable sources was 1,20,273 MU as against the generation of 1,15,991 MU during September 2019, showing a growth of 3.69%.11

A total of 763.47 MW of Renewable Energy capacity was added in November, taking the cumulative installed RE capacity to 90.39 GW.16

  • A total of 1396.97 MW renewable energy capacity has been added, taking the cumulative installed capacity to 92.54 GW in the country on January 31, 2021. 
  • The Solar power capacity has increased by more than 14 times from 2630 MW to 37505MW in the last five years as of December 2019. 3
  • In the year 2018-19, 62.036 Billion Units of energy were generated from wind power. 3
  • Power generation potential from agricultural and agro-industrial residues in India is estimated to be around 18,000 MW while the potential of surplus power generation through bagasse cogeneration in sugar mills is estimated at around 8,000 MW. Thus, the total estimated potential for biomass power is about 26,000 MW. 3
Growth Drivers
  • An investment of INR 1810.56 cr for 210 MW Luhri Stage-I Hydro Electric Project located on river Satluj was approved by Hon’ble PM Shri Narendra Modi. Through this project 758.20 mn units of electricity will generate annually. This will result in direct & indirect employment to around 2000 persons, which will boost socio-economic development of the State. 
  •  India has attracted $ 64 bn Foreign investment and made India 4th largest and fastest-growing economy in the world. By 2022 share of RE will expand to 220 GW.
  •  PM-KUSUM Scheme to enable greater solar energy generation in the farm sector. The size of solar plant has been reduced to enable participation of small farmers.15
  • In RE-Invest 2020, Hon'ble PM Narendra Modi focused that the renewable energy capacity in India is currently 136 Giga Watts, which is about 36% of our total capacity.17
  • Pradhan Mantri Kisan Urja Suraksha Evam Uttan Mahabhiyan (PM-KUSUM) Scheme achieved enhanced solar capacity of 30.8 GW by 2022 with the revised central financial support of INR 34,035 cr.18
  • On 21st December 2020, MOU was signed between India’s Atomic Energy Regulatory Board (AERB) and Vietnam Agency for Radiation and Nuclear Safety (VARANS) to promote mutual cooperation between the regulatory bodies of the two countries in the fields of radiation protection and nuclear safety.19

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FDI Policy
  • FDI up to 100% is permitted in the renewable energy sector under the Automatic route and no prior Government approval is required. 5
  • The cumulative FDI equity inflow in the Non-Conventional Energy industry is USD 10,279.81 mn during the period April 2000 to June 2021. This constitutes 1.88% of the total equity inflow received in all the sectors during the same period.6

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Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in High-Efficiency Solar PV Modules for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Financial Outlay- INR 4,500 cr

For more details on PLI Schemes, Click Here

Sector Policy
  • The Ministry of New and Renewable Energy notified the National Wind-Solar Hybrid Policy in 2018 with an objective to provide a framework for promotion of large grid connected wind-solar PV hybrid system for efficient and optimal utilization of wind and solar resources, land and transmission infrastructure. The policy aims to encourage new technologies, methods and wayouts involving combined operation of wind and solar PV plants. The Policy seeks to promote new hybrid projects as well as hybridisation of existing wind/solar projects. 3 
  • The ‘Central Public Sector Undertaking (CPSU) Scheme Phase – II aims to set up a 12 GW grid-connected Solar photovoltaic (PV) Power projects. The eligible organizations are Government Producers (PSUs/ Govt. Organs.) which are under administrative control or have 50% shareholding of Central / State Government. The support offered by the central government is VGF of up to INR 70 lakhs/ MW; actual VGF decided through bidding for VGF required. 9
  • The Central Finance Assistance (CFA) under the Biogas based Power Generation and Thermal Application Programme (BPGTP) varies from INR 25,000 per kW to INR 40,000 per kW for power generation as per the generation capacity slab and INR 12,500 per kW to INR 20,000 per kWe for thermal applications respectively. 3 
  • Under the ‘Programme on Energy from Urban, Industrial and Agricultural Waste/Residues’ Scheme, Central Financial Assistance (CFA) for projects of different categories is given in the form of capital subsidy to the promoters and in the form of Grants-in-Aid for other activities, as given below: 3
    • Biogas generation : INR 1 cr per 12000 cum/day (Max. INR 10 cr/project) ;
    • BioCNG generation (including setting of Biogas plant): INR 4 cr per 4800Kg/day (Max. INR 10 cr/project)
    • Power generation based on Biogas (including setting of Biogas plant): INR 3 cr per MW (Max. INR10 cr/project)
    • Biomass Gasifier:
      • INR 2,500 per kWe with duel fuel engines for electrical application
      • INR 15,000 per kWe with 100% gas engines for electrical application
      • INR 2 lakh per 300 kW for thermal applications.
  • Under the ‘Development of Solar Parks and Ultra Mega Solar Power Projects’ scheme, the Ministry provides Central Financial Assistance (CFA) of up to INR 25 lakh per solar park for preparation of Detailed Project Report (DPR). Beside this, CFA of up to INR 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving the milestones prescribed in the scheme. 3

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)13

  • The Ministry of Power launched this scheme with the following components: 
  • i. To separate agriculture and non-agriculture feeders to facilitate DISCOMs in the judicious rostering of supply to agricultural & non- agricultural consumers in rural areas. 
    ii. Strengthening and Augmentation of Sub Transmission & Distribution infrastructure in rural areas and metering at Distribution Transformers, Feeder and consumers end in rural areas.
    iii. The erstwhile rural electrification scheme was subsumed in DDUGJY as a separate rural electrification component and the approved outlay of the erstwhile scheme has been carried forward to the DDUGJY.
  • The total outlay of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) was INR 75893 cr and subsidy was INR 63027 cr.13 

Production-Linked Incentive (PLI) Scheme

  • Production-Linked Incentive (PLI) Scheme in High-Efficiency Solar PV Modules Sector through the Ministry of New and Renewable Energy was approved with a financial outlay of INR 4500 cr over a five-year period for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. Read More
  • Expected outcomes/ benefits from the scheme are - Additional 10,000 MW capacity of integrated solar PV manufacturing plants.; Direct investment of around 17,200 cr in setting up solar PV manufacturing projects; Direct employment of about 30,000 and Indirect employment of about 1,20,000 persons; Import substitution of around 17,500 cr every year; Demand of 17,500 cr over 5 years for 'Balance of Materials'.
  • IREDA invites bids for the INR 4500 cr Solar PLI scheme for which application is open till 30th June 2021. The applicants are required to set up either a brownfield or greenfield manufacturing facility for the entire capacity allotted under the scheme.23

Atal Jyoti Yojana (AJAY) Phase-II:20 

  • The AJAY Ph-II Scheme for installation of solar street lights with 25% fund contribution from MPLAD Funds was discontinued from 1 April 2020 as the Government decided to suspend the MPLAD Funds for next two years i.e. 2020-21 and 2021-22. 
  • However, installation of 1.5 lakh solar street lights sanctioned under the scheme till March 2020 was under progress and till October 2020 around 0.84 lakh solar street lights reported installed and balance are targeted to be completed by March 2021.


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Financial Support

Highlights of Budget 2020-21 7

  • The total budgetary allocation for FY 2020-21 towards the Ministry of New and Renewable Energy is INR 5753 cr.
  • The total allocation towards central sector schemes and projects is INR 5646 cr.
Investment Opportunities
  • A Cooperation Agreement was signed between Ministry of New and Renewable Energy, India and Ministry for Energy, Utilities and Climate of the Kingdom, Denmark on strategic cooperation in the field of Renewable Energy with focus on Offshore Wind Energy. The areas of cooperation include forecasting and scheduling of off-shore wind; measures to develop and sustain a highly efficient wind industry, onshore as well as offshore; technical capacity building for management of off­shore wind projects; measures to 'ensure high quality of wind turbines, components, and certification requirements. 8
  • Research, Development and Demonstration (RD&D) is one of the core requirements for the growth of New & Renewable Energy. Ministry of New & Renewable Energy (MNRE) supports RD&D to develop new and renewable energy technologies, processes, materials, components, sub-systems, products & services, standards and resource assessment so as to indigenously manufacture new and renewable energy systems and devices. 3
  • The ‘Grid Connected Solar Roof Top Programme’ aims to achieve a cumulative capacity of 40 GW from Rooftop Solar (RTS) Projects by the year 2022. The programme will be implemented with the total central financial support of INR 11,814 cr through DISCOMs. 9
  • In order to attract the large investment for  the development of the Offshore wind energy sector in India, the Government of India under the ‘National Offshore Wind Energy Policy’ has announced to develop 5 GW of offshore wind energy project by 2022 and 30 GW by 2030. 3

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Foreign Investors
  • Enercon (Germany)
  • Vestas (Denmark)
  • Applied Materials (US)
  • Asian Development Bank
  • Enel (Italy)
  • Gamesa (Spain)
  • Orix (Japan)
  • Nordex (Germany)
  • Mudajaya (Malaysia)
Key Achievements
  • The cumulative solar pumps installed for the last 7 years is 246,074. 3
  • Under the Off-Grid and Decentralised Solar Programme, more than 74 lakh solar lanterns and study lamps; more than 17 lakh home lights have been distributed. 3
  • More than 6.80 lakh streetlights have been set up in the villages of India and more than 2.46 lakh Solar PV Pumps have been installed in the rural areas for irrigation and drinking water purposes. 3
  • Under the ‘Ladakh Renewable Energy Initiative (LERI)’ implemented by MNRE, the Ladakh Renewable Energy Development Agency (LREDA) has completed the implementation of 500 Commercial Green Houses (CGHs) in the Leh region with a total cost of INR 10.34 cr. 3
  • Solar Energy Corporation of India (SECI) has awarded 1440 MW capacity after e-reverse auction under Solar – Wind Hybrid policy.
  • CPSU Scheme Phase II launched with VGF funding with 922 MW awarded under Tranche I and 1104 MW awarded under Tranche II
  • 12 biogas based projects have been commissioned with a power generation capacity of 212 kW and a corresponding biogas generation capacity of 1805 m3 per day.12
  • The total electricity generation from renewable sources in the country in September 2020 was 1,20,273 MU as against the generation of 1,15,991 MU during the corresponding period last year, showing a growth of 3.69%.13
  • NTPC Ltd is a PSU under the Ministry of Power that has been serving the country for the past 45 years. With the current power-producing capacity of 62 GW, NTPC plans to become a 130 GW company by the year 2032. For the cleaner source of energy, NTPC plans to achieve 32,000 MW of capacity through renewables or 25% of its overall power portfolio at the beginning of the next decade.14 
  • The Solar Energy Corporation of India (SECI) issued a Letter of Award for 1200 MW ISTS connected wind power projects on March 19, 2021.
  • Under the Waste to Energy Programme, MNRE sanctioned CFA of INR 250 cr to five MSW power projects with a total power capacity of 74.7 MW and total utilisation of approximately 6000 tons/day of MSW.
  1. Ministry of New and Renewable Energy,
  2. IREDA to Create a Green Window for Green Energy Finance, Ministry of New and Renewable Energy, PIB,
  3. Annual Report 2019-20, Ministry of New and Renewable Energy,
  4. Year-End Review 2019, MNRE, PIB,
  5. Consolidated FDI Policy,
  6. Factsheet on FDI - April 2000 to June 2021Department for Promotion of Industry and Internal Trade,
  7. Expenditure Budget, Ministry of New and Renewable Energy,
  8. Cabinet approves Cooperation Agreement between India and Denmark in the field of Renewable Energy with focus on Offshore Wind Energy, PIB,
  9. Schemes, Ministry of New and Renewable Energy,
  10. Annual Report 2019-20, Ministry of New and Renewable Energy,
  11. Ministry of New and Renewable Energy,
  12. Annual Report 2019-20, Ministry of New and Renewable Energy,
  13. Ministry of New and Renewable Energy, Monthly Report
  14. PIB Release,
  15. PIB Release,
  16. Ministry of New and Renewable Energy,
  17. PIB Release,
  18. Ministry of New and Renewable Energy,
  19. PIB Release,
  20. PIB Release,
  21. Ministry of New and Renewable Energy, Monthly Report,
  22. Annual Report 2021-21,
  23. PIB Release,

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