The Ministry of New and Renewable Energy (MNRE) has taken several steps for a clean energy future by taking up the largest renewable capacity expansion programme in the world.  The renewable energy sector in India has emerged as an integral part of the solution to meet the nation’s energy needs. There has been a visible impact of renewable energy in the Indian energy scenario during the last few years as India is on its way to achieving the 175 GW target for installed Renewable Energy capacity by 2022. The Ministry of New and Renewable Energy (MNRE) launched schemes  on development of wind-solar hybrid power projects, onshore wind power projects, biomass power and bagasse cogeneration, biomass gasifier for industries, scheme for development of solar parks an ultra-mega solar power projects, grid-connected solar PV power plants on canal banks and canal tops and biogas based grid power generation programme.

Among all, the National Solar Mission is the most ambitious program which aims to promote solar energy for power generation with an aim of making levelized cost of solar energy competent with coal/gas based power generation. Historic low tariffs for solar and winds were achieved through transparent bidding and facilitation giving a big push to the renewable sector.

The Government of India is promoting renewable energy by generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc. for providing financial support to various schemes.

Major Initiatives:

1) Solar Power

• Capacity of the scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” has been enhanced from 20 GW to 40 GW.
• Amendments in building by-laws for mandatory provision of roof top solar for new construction or higher floor area ratio and making roof top solar as a part of housing loan by banks/NHB
• Provision of roof top solar photovoltaic system and 10 per cent renewable energy as mandatory under mission statement and guidelines for development of smart cities.
• Raising tax free solar bonds for managing equity to setup solar projects.
• Tariff based competitive bidding process for purchase of solar power.
• Surya-Mitra programme has been launched for creation of a qualified technical workforce and over 11 thousand persons have been trained under the programme.

2) Wind Power

• In terms of wind power installed capacity, India is globally placed at 4th position after China, USA and Germany.   
• India has a long coastline where there is a good possibility for developing offshore wind power projects. The cabinet has cleared the National Offshore Wind Energy Policy.

3) Bioenergy

• Central financial assistance for biomass power projects includes installations from biomass combustion, biomass gasification and bagasse co-generation.
• Promotion of off-grid biogas power project for captive power generation.
• Family Size Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP).

 4) Amendments in Tariff Policy

• Enhancement in solar renewable purchase obligation to 8 per cent by March 2022.
• Introduction of renewable generation obligation for new coal/lignite based thermal plants.
• Bundling of renewable power for ensuring affordable renewable electricity.
• Waving off inter-state transmission charges for solar and wind power.

 5) Green Energy Corridor

• Intra-State Transmission System is being implemented by eight renewable rich States (Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh and Madhya Pradesh)

6) Other Initiatives

• Formation of International Solar Alliance (ISA) which became a legal entity in December 2017. India has been playing a leading role in the International Renewable Community along with France, with its headquarters in India. ISA is an international body of 121 countries lying between Tropic of Cancer and Tropic of Capricorn.
• Bank loans up to a limit of Rs. 15 crores will be given to borrowers for purposes like solar based power generators, biomass based power generators, wind power systems, micro-hydel plants and for renewable energy based public utilities viz. Street lighting systems, and remote village electrification. For individual households, the loan limit will be Rs. 10 lakh per borrower.

Foreign Direct Investment (FDI) upto 100 per cent is permitted under the automatic route for renewable energy generation and distribution projects subject to provisions of the Electricity Act, 2003.