Indias total RES (MNRE) is 25856.14 MW. It is 12% of total installed capacity.

India has huge renewable energy potential from wind , solar, geothermal, tidal, large hydro and small hydro power generation. India has energy shortage about 8% , Peaking Shortage about 12-13% and energy demand is growing at 8% per annum. As the fuel cost of thermal power plants are increasing very firstly, the energy need of India will depend on the renewable energy sources in future.

The development of grid interactive renewable power took off with the coming into force of the Electricity Act 2003 (EA 2003), which, among other things, provides for regulatory interventions for promotion of renewable energy (RE) sources through
a) determination of tariff

b ) specifying renewable purchase obligation (RPO) c) facilitating grid connectivity

d) promotion of development of market.

The National Tariff Policy (NTP) 2006 requires the State Electricity Regulatory Commissions (SERCs) to fix a minimum percentage of Renewable Purchase Obligation (RPO) from RE sources. SERCs fix the tariff of RE power. NTP has further elaborated on the role of regulatory commission; mechanism for promoting renewable energy and time frame for implementation.

The policy was amended in January 2011 to prescribe solar-specific RPO be increased from a minimum of 0.25 per cent in 2012 to 3 per cent by 2022. In view of the aforesaid provisions, regulatory framework for renewable power is evolving and all major States, Central Electricity Regulatory Commission (CERC), Central Electricity Authority (CEA) etc are declaring, revising, and modifying renewable power regulatory framework such as RE policy, RPOs, Feed in Tariffs (FiTs), Renewable Energy Certificate (REC) mechanism, grid connectivity and forecasting provisions etc. on a regular basis.

The Potential for wind power generation for grid interaction has been estimated at about 48,500 MW taking sites having wind power density greater than 200 W/sq. m at 50 m hub-height with 1% land availability in potential areas for setting up wind farms @12 ha/MW The broad based Wind Power Program of the Ministry aims to catalyze commercialization of grid interactive wind power.

The Wind Resource Assessment Program which is being coordinated by the Centre for Wind Energy Technology (C-WET) has so far covered 31 States and Union Territories involving establishment of about 1244 wind monitoring and wind mapping stations. The cost of setting up a wind monitoring station is shared between Central and State Governments in ratio of 80:20 whereas it is 90:10 for the North Eastern Region and hilly States. 233 potential sites have been identified in the country.

The Ministry has been issuing guidelines for wind power development since July 1995 in order to bring about balanced growth of the sector. These guidelines relate to preparation of detailed project reports, micro-siting, selection of wind turbine equipment, operation & maintenance, performance evaluation, etc. A list of manufacturers of certified wind turbine machines is issued by C-WET on quarterly basis.

India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over Indias land area with most parts receiving 4-7 kWh per sq. m per day. Hence both technology routes for conversion of solar radiation into heat and electricity, namely, solar thermal and solar photovoltaics, can effectively be harnessed providing huge scalability for solar in India. Solar also provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead times

The National JNNSM Solar Mission was framed to promote the use of solar energy for power generation and other application; also promoting the integration of other renewable energy technologies like biomass and wind with solar energy options. The Solar Energy can be tapped via two routes solar thermal and solar photovoltaic. Thus the framework is targeted to achieve Solar energy utilization via these routes.

The Procedure and guidelines for Solar Power development is clearly stated by MNRE.

Benefits like Generation based incentives (GBI), 80% accelerated depreciation income tax benefits on renewable energy products including solar. Several products like Solar lanterns, street lights, blinkers and traffic signals are to be manufactured under specifications laid down by MNRE to avail capital subsidy benefits.

The Ministry of New & Renewable Energy has already introduced Generation Based Incentive (GBI) schemes separately for wind and solar energy. Under the scheme for wind power, a GBI @ Rs. 0.50 per unit of electricity fed into the grid is provided for a period not less than 4 years and a maximum period of 10 years with a cap of Rs. 62 lakhs per MW. The scheme is in parallel with accelerated depreciation but on a mutually exclusive manner. The total disbursement in a year should not exceed one fourth of the maximum limit of the incentive i.e. Rs. 15.50 lakhs per MW during the first four years. The Scheme includes captive wind power projects, but excludes third party sale, (viz. merchant power plants).

Under the Scheme for Solar Energy, GBI is provided to support small grid solar power projects connected to the distribution grid (below 33 KV) to the state utilities. Indian Renewable Energy Development Agency (IREDA) has selected 78 projects with a total capacity of about 98 MW for which the Ministry will provide GBI of Rs. 12.41 per kWh to the State utilities when they directly purchase solar power from the project developers.

Foreign Investment Policy: a) Foreign investors can enter into a joint venture with an Indian partner for financial and/or technical collaboration and for setting up of RE-based power generation projects. b) Proposals for up to 100 per cent foreign equity participation in a joint venture qualify for automatic approval.

c)The Government of India also encourages foreign investors to set up RE-based power generation projects on Build, Own and Operate (BOO) basis. Various Chambers of Commerce and industry associations in India provide guidance to the investors in finding appropriate partners. d) No prior approval of the government is required to set up an industrial undertaking with Foreign Direct Investment (FDI) by NonResident Indians (NRIs) or Overseas Corporate Bodies (OCBS).

Foreign Investment Promotion Board (FIPB): a) The FIPB has been revamped and made itself the single-window agency for all matters relating to FDI as well as for promoting investment into India. b) FIPB would also monitor implementation of mega projects to facilitate further investment and remove bottlenecks.

Industrial Policy: a) MNES is promoting medium, small, mini and micro enterprises for manufacturing and servicing of various types of RE systems and devices. b) Industrial clearances are not required for setting-up of an RE industry. c) No clearance is required from Central Electricity Authority (CEA) for power generation projects up to Rs 1,000 million.

d) A five-year tax holiday is allowed for RE power generation projects. e) Customs duty concession is available for RE spares and equipment, including those for machinery required for renovation and modernization of power plants. Excise duty on a number of capital goods and instruments in the RE sector has been reduced or exempted.

Policies by State Governments: a) A number of states have announced policy packages including banking, third party sale and buy- back mechanism. b) Some states are providing concessions or exemption in state sales tax. These rates vary widely from state to state and between different technologies. c) Fourteen states have so far announced policies for the purchase and support of electrical energy generated from various RE sources.

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