India’s Bold Renewable Energy Vision With Transformative Policies

The Government of India, under the leadership of the Union Minister for New & Renewable Energy and Power, is actively pursuing an ambitious agenda to promote and accelerate the adoption of renewable energy sources and reduce carbon emissions. Aligned with global commitments, as outlined in the G20 New Delhi Leaders’ Declaration, the government aims to triple global renewable energy capacity by 2030 and achieve 500 GW of installed electric capacity from non-fossil sources.

The government has taken several steps and initiatives to promote and accelerate renewable energy capacity in the country with the target to achieve 500 GW of installed electric capacity from non-fossil sources by 2030.

Some of major steps taken are as follows:

1. Announcement of structured bidding trajectory to invite bids for 50 GW of renewable energy capacity annually for the next five years i.e., from Financial Year 2023-24 till Financial Year 2027-28.
2. Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030 vide notification dated 20^th October, 2023.
3. Release of the Procedure for Implementation of Uniform Renewable Energy Tariff on 25th October 2023.
4. Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis.
5. Laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power.
6. Waiver of Inter State Transmission System (ISTS) charges for inter-State sale of solar and wind power for projects to be commissioned by 30th June 2025.
7. Launch of Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules to strengthen local manufacturing.
8. Launch of the National Green Hydrogen Mission with an overarching objective of making India the Global Hub for production, usage and export of Green Hydrogen and its derivatives.
9. Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.

Under existing bilateral Memorandum of Understandings/ Agreements, Government of India has been in discussion with countries to collaborate efforts on multilateral platforms to support energy transition.  Government of India is also engaging with countries at several other multilateral initiatives such as QUAD, IPEF, IRENA, COP28, CEM/MI etc.to support the energy transition efforts globally.

The Government of India is providing an assistance of Rs.100 crore per year to the International Solar Alliance (ISA) for the financial years 2022-23, 2023-24 and 2024-25 to help energy transition, especially in developing and emerging economies. 

ISA is undertaking the following actions to promote renewable energy globally:

• Preparing a global solar stocktake, in parallel with the global stocktake being conducted by the UNFCCC, which is crucial to laying the roadmap for achieving the Nationally Determined Contributions (NDCs) in various countries, and the role of solar energy in mitigating climate change and leading us towards a sustainable future powered by solar energy.
• Setting up of a Global Solar Facility with a payment guarantee mechanism and an insurance premium support fund to provide confidence to private investors and companies and to invest in decentralized solar projects in Africa.
• Capacity building in other countries, including setting up of STAR (Solar Technology Application Resource) centres in 5 countries in 2023 and upto 50 STAR centres by 2030.   These STAR Centres are based in the beneficiary countries, and would be the hubs of capacity building activities in those countries.
• Promoting institutional and regulatory support to help create the rules, regulations and institutions to deploy and upscale solar energy applications.
• Implementing pilot projects in Small Island Developing States and the Least Developed Countries with a view to showcase the technological and business viability of these applications and identifying their social, economic and environmental benefits so that they are taken up as national programs.

The Union Minister for New & Renewable Energy and Power has informed that as per details provided by NITI Aayog, Long Term Low Emission / Carbon Development Strategy (LT-LEDS) submitted to UNFCC outlines. Government of India’s approach towards low carbon development or reducing the use of fossil fuels in the country.

In-line with this above vision, Government of India has launched several measures which include:

• Specifying the minimum share of consumption of non-fossil resources by designated consumers, including Distribution Companies, up to 2029-30,
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Parks Scheme, Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II,
• Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
• Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
• Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy Power through exchanges.
• Launch of National Green Hydrogen Mission with an aim inter alia to reduce the consumption of imported fossil fuels.
• Target of 20% ethanol blending in Petrol by 2025 was advanced by 4 years (from 2030 to 2025-26). In the 2023-24 Union Budget, Government has announced introduction of mandate of 5% Compressed Bio Gas to be utilized for all entities marketing natural and biogas in India.
• Further, Bureau of Energy Efficiency (BEE) has undertaken a number of initiatives, including Perform, Achieve and Trade (PAT) program, Standards and Labelling (S&L) scheme, and the provisions under the Energy Conservation Building Code, which enable reductions in consumption of fuel and energy in the country.

The Government has taken various steps to promote production of new and renewable energy resources from bioenergy sources, including from agricultural residue across the country. These steps, inter alia, includes the following:

1. Launch of the National Bioenergy Programme (NBP) in November, 2022 with budgetary outlay of Rs. 1715 Crore for a period 01.04.2021 to 31.03.2026 to be implemented in two phases.

(ii)  Under the GOBARDHAN scheme implemented by Department of Drinking Water and Sanitation, Ministry of Jal Shakti, a financial assistance upto Rs.50.00 lakh per district is available for setting up of community biogas plants in villages, blocks / district.

(iii) Ministry of Power has notified SAMARTH Mission (National Mission on Use of Biomass in Thermal Power Plants) for promoting the blending of biomass in the existing coal powered thermal power plants.

(iv) Central Pollution Control Board, Ministry of Environment, Forest and Climate Change has notified guidelines to provide financial support for setting up of Biomass Pellet plants in the NCT of Delhi, states of Punjab and Haryana and NCR districts of Rajasthan and Uttar Pradesh. An initial corpus of Rs. 50 crore has been earmarked for utilization through these guidelines.