Renewable Energy

Summary
  • India stands at 4th position for overall installed renewable energy capacity in the world. *
  • India is among the top three nations in the world which are leading the global renewable energy growth. *
  • India is reaching the top five countries of the world in terms of new and renewable energy. *
  • Solar capacity increased in the last 7.5 years from around 2.6 GW to more than 46 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. *
  • The installed solar energy capacity has increased by 19.3 times in the last 8 years, and stands at 56.6 GW as of 1st June 2022. *
  • India has achieved the target of 40% of its installed electricity capacity from non-fossil energy sources in November 2021. The country’s installed Renewable Energy (RE) capacity in November 2021 stands at 150.05 GW while its nuclear energy based installed electricity capacity stands at 6.78 GW. *
  • In the last 7 years, over USD 70 bn investment has been made in renewable energy in India.
  • India’s installed renewable energy capacity has increased 396% in the last 8.5 years and stands at more than 159.95 Giga Watts (including large Hydro), which is about 40 % of the country’s total capacity (as on 31st March 2022).*
  • 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. *
  • 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. *
  • Share of generation from renewable sources (including Hydro) in total Generation has been increased to 22.2% during 2020-21 from 19.0% during 2013-14.*
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. *
  • 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. *
  • 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. *
  • Solar Power tariff reduced by more than 75% using plug and play model. *
  • A total of 150 GW renewable energy capacity (including large hydro) has been installed in the country till November 2021. Projects of 63.64 GW capacity are under various stages of implementation and 32.06 GW capacity are under various stages of bidding. *
  • 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. *
  • Pakal Dul Hydro Electric Project will contribute significantly in fulfilling the target of 450 GW Renewable energy by 2030. Investment of INR 8212 crores is being made in the region which will provide direct and indirect employment opportunities and will help overall development of the local inhabitants.*
  • 20,000 acres of land at Pang would be provided immediately by UT of Ladakh for setting up of Renewable Energy Park, while availability of other 20,000 acres of land at Pang would be explored to set up 10 GW of Solar Park in Ladakh. *
  • Revised Guidelines of Ministry of Power and New & Renewable Energy will enable the replacement of fossil fuel based energy by renewable energy under the existing PPAs. As the cost of renewable energy is less than the cost of Thermal energy, the gains from the bundling of renewable energy with thermal will be shared between the generator and Distribution companies/other procurers on a 50:50 basis. *
  • To increase non-fossil energy capacity to 500GW by 2030, Coal & Lignite companies have planned to install additional 5560 MW of renewable capacity with an investment of over INR 15000 Crores. This will take the total installed capacity to 7 GW. Coal India alone has planned to install 3 GW of solar Power in next 5 years to achieve its net zero target.
  • Ministry of Power and New & Renewable Energy  have issued revised guidelines providing for thermal generation companies to set up renewable energy generation capacity either by themselves through developers by open bids and supplying it to the consumers under the existing PPAs. *
  • India planning to have a capacity of 30,000 MW of Offshore wind. *
  • Shri Bhagwant Khuba launches NSEFI’s Pan-India Rooftop Solar Awareness Campaign. MNRE is providing 40% of subsidy for households to install solar. This will enable to achieve the target of 500 GW of non-fossil by 2030.*
  • 50 solar parks of aggregate capacity 40 GW to be set-up.*

Explore more about infrastructure availability in Renewable Energy sector >

Key Achievements
  • The cumulative solar pumps installed for the last 7 years is 246,074. *
  • GOI has spent INR 35,000 crore on hydroelectric projects to provide electricity to villages of Jammu and Kashmir in 4 years from 2018-2021. *
  • 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. *
  • 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. *
  • 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. *
  • 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. *
  • A total of 219817.14 Million units of electricity have been generated from various renewable energy sources during the year 2021-22 (up to October 2021). *
  • 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. *
  • 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.
  • As on 31.10.2021, the share of solar power installed capacity in the overall electricity capacity is 12.20%, and in terms of electricity mix, it is 4.37% for the year 2020-21. *
  • The Diversion of Marusudar River of Pakal Dul Hydro Electric Project in  Kishtwar district of J&K is inaugurated. *
  • As on 30.11.2021, a cumulative 5.7 GW solar roof top projects have been set up in the country. *
  • A 1.24 MWp rooftop Solar Power Plant has been installed on the roofs of the two major buildings of Central Park Depot of East-West Metro and is scattered over 19173 sq mtr rooftop area in Kolkata. *
  • Power Grid Corporation of India Limited (POWERGRID) has signed a Joint Development Agreement with Africa50, the pan-African infrastructure investment platform to continue to develop the Kenya Transmission Project on a public-private partnership basis. *
  • The agro-residue/ biomass earlier considered as a waste product has now begun to produce zero-carbon electricity for the citizens of the country. In turn, farmers are getting additional income by selling the stubble/ biomass for conversion into torrefied/ non-torrefied biomass pellets. *
  • Till December 2021, approximately 59,000 metric tonnes (MT) of biomass has been cofired in thermal power plants in the country, while tenders for 12 million metric tonnes (MMT) are at different stages of process for short term & long term duration. * 
  • Indian Scientists have designed an electrocatalyst system for energy-efficient hydrogen production with the help of electrolysis of urea. The urea electrolysis is helpful towards urea-based waste treatment with low-cost hydrogen production. This can be utilized for energy production towards our country's benefits. *
  • Around 72.5 MWp solar PV plants have been commissioned during FY 2021-22 upto September 2021. *
  • Around 119.5 MW worth of Captive Power Plants were commissioned by BHEL in FY 2020-21, while 75 Mw of Captive Power Plants have been commissioned during FY 2021-22 till September 2021. *
  • India has achieved its NDC target with total non-fossil based installed energy capacity of 159.95 GW which is 41.4% of the total installed electricity capacity.*
  • Solar Parks in Bhadla(2.2 GW) Pavagada (2 GW) and Kurnool (1 GW) included in top 5 operational solar parks of 7 GW capacity in the country.*
Recent Announcements

21st August 2022: Dr Jitendra Singh unveils India’s first truly indigenously developed Hydrogen Fuel Cell Bus developed by KPIT-CSIR in Pune.

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26th July 2022: ONGC to make Green Hydrogen; inks MoU with India’s leading renewable energy Company Greenko Zero C.

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20th July 2022: NHPC signs MoU with DVC for exploring and setting up Hydropower and Pump Storage Projects.

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20th July 2022: NTPC inks MOU with Moroccan Agency for Sustainable Energy for cooperation in RE Sector.

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7th July 2022: Ministry of Power has undertaken 9  High Impact Power projects  spanning over 6 RE rich States.

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Statistics
  • The installed Renewable energy capacity (including large hydro) has increased from 76.37 GW in March 2014 to 159.95 GW in May 2022, i.e. an increase of around 109.4%.* 
  • 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. *
  • 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. *
  • Under Green Energy Corridor Scheme-Intra-State approx. 9700 ckm of transmission lines and 22600 MVA capacity of substations have been planned in eight states for evacuation of approx. 24 GW of RE projects. Out of this, 8405 ckm transmission lines and 15268 MVA of substations have been completed. *
  • REC Limited has entered into an agreement with KfW Development Bank for availing ODA term loan of USD 169.5 mn under Indo-German Bilateral Partnership to finance the innovation of Solar PV Technology-based generation Projects in India. *
  • The electricity energy generation from Renewable Energy Sources (Solar, Wind, Hydro& Bio Power) has increased from 193.5 Bn Units during 2013-14 to 306.3 Bn Units during 2020-21 showing the CAGR of 6.8%. *
Growth Drivers
  • ONGC signed a MoU with M/s Greenko ZeroC Private Limited (Greenko), to jointly pursue opportunities in Renewables, Green Hydrogen, Green Ammonia and other derivatives of green hydrogen.*
  • NTPC REL inks MoU with GACL to collaborate in Renewable Energy and synthesize Green Chemicals. The MoU envisages collaborating in the field of Renewable Energy, Green Methanol & Green Ammonia and mutually exploring the opportunities for the supply of 100 MW RE-RTC (Round The Clock) power and synthesizing 75 TPD Green Methanol and 35 TPD Green Ammonia for captive use for the production of various chemicals by GACL at its Vadodara and Dahej complex in Gujarat.*
  • Ministry of Power has undertaken 9  High Impact Power projects (10 no. of transmission lines) spanning over 6 RE rich States Viz. Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu under PM Gati Shakti National Master Plan.*
  • 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 USD 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. *
  • 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. *
  • 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. *
  • 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. *
  • Eight hydro-electric projects in Indus basin have been initiated, out of which seven projects are in UT of Ladakh and one in UT of J&K. There are 37 major hydroelectric projects under construction in the entire country in November 2021. *
  • Hydropower projects including Renukaji Dam project, Luhri Stage 1 Hydro Power Project,  Dhaulasidh Hydro Power Project and  Sawra-Kuddu Hydro Power Project are inaugurated in Mandi, Himachal Pradesh worth over INR 11,000 crore. *
  • As on 30.11.2021, 52 solar parks have been sanctioned with a cumulative capacity of 37.92 GW in 14 states. *
  • The Raksha Mantri inaugurated the 100 KW Grid connected rooftop solar power plant under the Ministry of New and Renewable Energy’s scheme for promoting solar roof-top plants on government buildings. *
  • Union Minister of Power and MNRE has approved new 23 Inter State Transmission System Projects (ISTS) with an estimated cost of INR 15,893 crore. *
  • The new transmission projects would inter-alia facilitate evacuation system for 14 GW of Renewable Projects in Rajasthan, 4.5 GW of RE projects in Gujarat, 1 GW Neemuch Solar Park, Madhya Pradesh and feeding areas near Akhnoor and Jammu region by establishing Siot Substation in Jammu. *
  • Intra-State Transmission System – Green Energy Corridor Phase-II is targeted to be set up with total estimated cost of INR 12,031 crore and aims to achieve 450 GW installed RE capacity by 2030. *
  • BHEL has started working on power plant flexibilisation and implementing Industry 4.0 to enhance power generation with accent on reducing carbon emissions. *
  • Under the amended Tariff Policy-2016, provision has been made for Distribution Licensee(s) to compulsorily procure 100% power produced from all the Waste-to Energy plants in the State. *
  • Government, through National Institute of Wind Energy, has issued ‘Guidelines for Offshore Wind Power Assessment Studies and Surveys’ to enable private investors to carry out offshore wind resource assessment. *
  • The equity infusion of INR 1500 crore in  Indian Renewable Energy Development Agency Limited (IREDA) will help in employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 Mn Tonnes CO2/year. *
  • Indian Renewable Energy Development Agency Ltd. signed MoU with Brahmaputra Valley Fertilizer Corporation Limited for providing its techno-financial expertise in developing Renewable Energy projects and fund raising. *
  • GOI is aiming to have Net Zero Emissions by 2070. Nearly 450 GW out of 500 GW will come from Renewable Energy sources. *
  • IREDA and Goa Shipyard Ltd signs MoU to set up a rooftop solar power project at the headquarter of the company situated in Vasco da Gama, Goa. IREDA will also extend its techno-commercial expertise to GSL for Environmental & Social (E&S) due diligence of rooftop solar and other RE projects as per the internationally accepted E&S standards to bring down the expenditure on electricity and reduce its carbon footprint. *
  • Indian Renewable Energy Development Agency Ltd. (IREDA) signed a MoU with THDC India Ltd (THDCIL) to provide its techno-financial expertise in developing Renewable Energy projects. *
  • A Letter of Intent between India and Australia on New and Renewable Energy Technology was signed to pave the way for working towards reducing the cost of new and renewable energy technologies and scaling up deployment in order to accelerate global emissions reduction. *
  • PM launched the National Hydrogen Mission to aid the government in meeting its climate targets and making India a green hydrogen hub. This will help in meeting the target of production of 5 million tonnes of Green hydrogen by 2030 and the related development of renewable energy capacity. *
  • MoU has been signed between Hindustan Petroleum Corporation Limited (HPCL) and Solar Energy Corporation of India Limited to realize green energy objectives and the GOI’s efforts towards carbon-neutral economy. *
  • BHEL has indigenously-developed India’s first Coal to Methanol Pilot Plant. *
  • IREDA inks MoU with CIPET to provide its techno-financial expertise for solarization of CIPET campuses. *
  • Cabinet approves infusion of INR 1,500 crore in Indian Renewable Energy Development. Agency Limited (IREDA).
  • IREDA signed MoU with Goa Shipyard Limited (GSL) to provide its techno-financial expertise to set-up a rooftop solar power project. *
  • IREDA, the largest lender of the Renewable Energy sector in India, sanctioned a loan of INR 267.67 crores to BluSmart Mobility for the purchase of 3,000 all-electric cars. *
  • The Government is implementing a scheme for setting up of 50 Solar Parks of aggregate capacity of 40,000 MW in the country. These parks are meant to provide developed infrastructure to facilitate installation of solar power projects. *
  • The Cabinet Committee has approved the investment of INR 4526.12 crore for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab, in Kishtwar district of Union Territory of Jammy and Kashmir. *
  •  Joint declaration of Intent on Indo – German Green Hydrogen Task Force signed for both countries to strengthen mutual cooperation in production, utilization, storage and distribution of Green Hydrogen through building enabling frameworks for projects, regulations and standards, trade and joint research and development (R&D) projects.*
  • MHA and Solar Energy Corporation of India Limited (SECI) sign MoU to realize India’s green energy initiative by jointly undertaking installation of Solar Rooftop PV Power Plants. *
  • SECI signs MoU with MHA in order to harness the potential of solar energy on the available rooftop areas in the campuses of the Central Armed Police Forces (CAPF) and National Security Guard (NSG). *
  • India offers a great opportunity for investments in RE sector; USD 196.98 bn worth of projects underway in India *
  • To promote green hydrogen economy, India has estimated outlay of INR 25,425 Cr. The Green Hydrogen Mission has expected outcome of generating 4.1 Mn Tonnes of annual Green Hydrogen production. *
  • In Maharashtra, IREDA sanctioned loan of INR 2,564 crores for 12 RE project accounts and disbursed INR 1362 crores during FY 2021-22. *
  • IREDA sanctioned loan of INR 14,445 crores for 422 RE project accounts in Maharashtra. *
  • Cabinet approves Strategic Partnership Agreeme t between the Ministry of New and Renewable Energy (MNRE), India and the International Renewable Energy Agency (IRENA). The Agreement will help India’s energy transition efforts and will also help the world in combating climate change.*
  • NTPC Renewable Energy Limited signs MOU with Government of Rajasthan for Development of 10 GW Ultra Mega Renewable Energy Power Parks (UMREPP) in Rajasthan.*
  • The MOU between NTPC Ltd. and Masen which are pioneers in the field of renewable energy generation promises to usher in the joint development of utility-scale projects based on renewable energy in Africa. Through this cooperation, it is intended to support services for capacity building, share experience, know-how, and expertise in the areas of mutual interest, especially in the field of Research and Development.* 
  • NHPC Limited signed a Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC) to explore the formation of a Joint Venture Company (JVC) for exploring and setting up hydropower and pump storage projects.*
FDI Policy
  • FDI up to 100% is permitted in the renewable energy sector under the Automatic route and no prior Government approval is required. *
  • The cumulative FDI equity inflow in the Railway related components industry is USD 11,623.65 mn during the period April 2000 to March 2022. This constitutes almost 2.1% of the total FDI inflow received across sectors.*

Read more about Foreign Direct Investment Policy in India >

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
  • Ministry of New and Renewable Energy implements Rooftop Solar Programme Phase-II, targeting 4000 MW rooftop solar (RTS) capacity addition in residential sector. *
  • Ministry of Power's policy on “Biomass Utilization for Power Generation through Co-firing in Coal based Power Plants” issued in October 2021 mandates all thermal power plants in the country to use 5 to 10% biomass along with coal for power production. *
  • 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. *
  • 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. *
  • 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. *
  • 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: *
    • 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. *

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) *

  • 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.

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.

Atal Jyoti Yojana (AJAY) Phase-II: *

  • 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.

Energy Storage Systems *

  • Policy on Energy Storage system is being drafted to promote the creation of storage systems on a large scale across the country.
  • The policy aims at the creation of technology-agnostic storage system across the value chain of the electricity sector viz. at generation, transmission, and distribution levels.
  • Energy Storage Systems will benefit Generating Companies, Distribution Companies of the States, Grid Operators, and other players in the electricity value chain.
  • They will facilitate Peak shifting, Peak Shaving, Ramp up/ramp down, and Frequency Control in the system and enhance the utilization of the Transmission System. ESS is considered essential for a smooth energy transition from coal-based to renewable sources and to a cleaner environment.

Green Open Access Rules 2022

  • The Rule has been notified to further accelerate our ambitious renewable energy programmes, with the end goal of ensuring access to affordable, reliable, sustainable and green energy for all.*
  •  The Green Open access is allowed to any consumer and the limit of Open Access Transaction has been reduced from 1 MW to 100 kW for green energy, to enable small consumers also to purchase renewable power through open access.
  • Transparency in the approval process of the open access application. Approval to be granted in 15 days or else it will be deemed to have been approved subject to fulfilment of technical requirements. It will be through a national portal.
  • Banking of surplus green energy with the distribution licensee mandated.
  • Consumers will be given the green certificates if they consume green power.
  • Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilized for production of green hydrogen and green ammonia.

Explore Government policies/ schemes in Renewable Energy sector >

Financial Support

Highlights of Budget 2022-23 *

  • The total budgetary allocation for FY 2022-23 towards the Ministry of New and Renewable Energy is INR 6900.68 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. *
  • 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. *
  • 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. *
  • 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. *

Explore projects to invest in Renewable Energy sector >

Foreign Investors
  • Enercon (Germany)
  • Vestas (Denmark)
  • Applied Materials (US)
  • Asian Development Bank
  • Enel (Italy)
  • Gamesa (Spain)
  • Orix (Japan)
  • Nordex (Germany)
  • Mudajaya (Malaysia)
Agencies
Sources
  1. Ministry of New and Renewable Energy, https://mnre.gov.in/
  2. IREDA to Create a Green Window for Green Energy Finance, Ministry of New and Renewable Energy, PIB, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1595888
  3. Annual Report 2019-20, Ministry of New and Renewable Energy, https://mnre.gov.in/img/documents/uploads/file_f-1597797108502.pdf
  4. Year-End Review 2019, MNRE, PIB, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1598948
  5. Consolidated FDI Policy, https://static.investindia.gov.in/s3fs-public/2020-09/FDI%20Policy%202020%20revised_18%20Sept%202020.pdf
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  8. Cabinet approves Cooperation Agreement between India and Denmark in the field of Renewable Energy with focus on Offshore Wind Energy, PIB, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1570599
  9. Schemes, Ministry of New and Renewable Energy, https://mnre.gov.in/solar/schemes/
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  11. Ministry of New and Renewable Energy, https://powermin.gov.in/sites/default/files/uploads/Monthly_Summary_for_the_Cabinet_concerning_Ministry_of_Power_for_the_month_of_Sep_2020.pdf
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  13. Ministry of New and Renewable Energy, Monthly Report https://powermin.gov.in/sites/default/files/uploads/Monthly_Summary_for_the_Cabinet_concerning_Ministry_of_Power_for_the_month_of_Sep_2020.pdf
  14. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1670598
  15. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1672580
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  17. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1676191
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  19. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1682467
  20. PIB Release, https://pib.gov.in/PressReleseDetail.aspx?PRID=1685046
  21. Ministry of New and Renewable Energy, Monthly Report,    https://mnre.gov.in/img/documents/uploads/file_f-1623745369613.pdf
  22. Annual Report 2021-21,  https://mnre.gov.in/img/documents/uploads/file_f-1618564141288.pdf
  23. PIB Release,  https://www.pib.gov.in/PressReleasePage.aspx?PRID=1726184

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