RE 2022

Report on Reaching India’s target Five times increase in Renewable Power capacity to 175 GW by
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Chapter 1
Introduction
India’s substantial and sustained economic growth is placing enormous demand on
its energy resources. Economic growth, increasing prosperity and urbanization, rise
in per capita consumption, and spread of energy access are the factors likely to
substantially increase the total demand for electricity.
Renewable energy has been an important component of India’s energy planning.
Renewable energy is increasingly becoming a key part of the solution to the nation’s
energy needs. The importance of renewable energy sources in the transition to a
sustainable energy base was recognized in the early 1970s. In April 2002, renewable
energy based power generation installed capacity was only 3475MW which was 2%
of the total installed capacity in India. Today, it is no longer an alternate energy
source, but is increasingly becoming a key part of the solution to the nation's energy
needs. Modern renewable energy is being used increasingly in four distinct markets:
power generation, heating and cooling, transport, and rural/off-grid energy services.
Renewable energy in India comes under the purview of the Ministry of New and
Renewable Energy. The Ministry of New and Renewable Energy (MNRE) is nodal
ministry of the Government of India formatters relating to new and renewable energy.
It promotes renewable energy technologies to enhance their share in the total energy
mix. The broad aim of the Ministry is to develop and deploy new and renewable
energy for supplementing the energy requirements of the country.
The role of new and renewable energy has been assuming increasing significance in
recent times with the growing concern for the country's energy security. Energy self-
sufficiency was identified as the major driver for new and renewable energy in the
country in the wake of the two oil shocks of the 1970s. The sudden increase in the
price of oil, uncertainties associated with its supply and the adverse impact on the
balance of payments position led to the establishment of the Commission for
Additional Sources of Energy in the Department of Science & Technology in March
1981. The Commission was charged with the responsibility of formulating policies
and their implementation, programmes for development of new and renewable
energy apart from coordinating and intensifying R&D in the sector. In 1982, a new
department, i.e., Department of Non-conventional Energy Sources (DNES), that

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incorporated CASE, was created in the then Ministry of Energy. In 1992, DNES
became the Ministry of Non-conventional Energy Sources. In October 2006, the
Ministry was re-christened as the Ministry of New and Renewable Energy.
The MNRE lays down the overall policy guide lines for renewable energy
programmes and provides budgetary support for research & development and
demonstration projects. It facilitates institutional finance to financial institutions and
promotes private investments through fiscal incentives, tax holidays, depreciation
allowance and remunerative returns for power fed into the grid.
The MNRE in India has been facilitating the implementation of broad spectrum
programs including harnessing renewable power, renewable energy for rural areas
for lighting, cooking and motive power, use of renewable energy in urban, industrial
and commercial applications and development of alternate fuels and applications. In
addition, it supports research, design and development of new and renewable
energy technologies, products and services.
The approach for deployment of new and renewable energy systems focused on a
mix of subsidy, fiscal incentives, preferential tariffs, market mechanism and
affirmative action such as renewable purchase obligations by way of legislation and
policies. Financial support has also been extended to research and development
(R&D), information & publicity and other support programs.
Renewable energy plays an important role in the long-term energy supply security,
diversification of energy mix, energy access, environmental security and
sustainability. Renewable energy is bound to play an increasing role in future energy
systems. The analyses central level policies and interventions for renewable energy
applications and also recommends a set of guidelines to serve as a roadmap to
accelerate the deployment of renewable energy technologies.
The Karnataka Renewable Energy Development Ltd. (KREDL) is an organization
working under the purview of Energy Department, Government of Karnataka. The
objective of the KREDL is to promote renewable energy in the state and to initiate all
necessary actions for energy conservation in the state. The KREDL works through
various governmental agencies, private organizations, NGO’s and accredited energy
auditors.

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Renewable energy is energy generated from natural resources, such as sunlight,
wind, rain, tides and geothermal heat, which are renewable (naturally replenished).
Renewable energy technologies range from solar power, wind power,
hydroelectricity, bio mass and bio fuels for transportation.
Solar energy makes use of the sun's energy. It is advantageous because the
systems can fit into existing buildings and it does not affect land use. But since the
area of the collectors is large, more materials are required. Solar radiation is also
controlled by geography. And it is limited to daytime hours and non-cloudy days.
Solar cells convert sunlight directly into electricity. Solar cells are often used to
power calculators and watches. They are made of semiconducting materials similar
to those used in computer chips. When sunlight is absorbed by these materials, the
solar energy knocks electrons loose from their atoms, allowing the electrons to flow
through the material to produce electricity. This process of converting light (photons)
to electricity (voltage) is called the photovoltaic (PV) effect.
Wind turbines use the wind’s kinetic energy to generate electrical energy that can be
used in homes and businesses. Individual wind turbines can be used to generate
electricity on a small scale – to power a single home, for example. A large number of
wind turbines grouped together, sometimes known as a wind farm or wind park, can
generate electricity on a much larger scale. A wind turbine works like a high-tech
version of an old-fashioned windmill. The wind blows on the angled blades of the
rotor, causing it to spin, converting some of the wind’s kinetic energy into mechanical
energy. Sensors in the turbine detect how strongly the wind is blowing and from
which direction. The rotor automatically turns to face the wind, and automatically
brakes in dangerously high winds to protect the turbine from damage.
Hydroelectric energy uses water to produce power. This is the most reliable of all the
renewable energy sources. On the down side, it affects ecology and causes
downstream problems. The decay of vegetation along the riverbed can cause the
build up of methane. Methane is a contributing gas to greenhouse effect. Dams can
also alter the natural river flow and affect wildlife. Colder, oxygen poor water can be
released into the river, killing fish.
Geothermal energy is the heat from the Earth. It's clean and sustainable. Resources
of geothermal energy range from the shallow ground to hot water and hot rock found
a few miles beneath the Earth's surface, and down even deeper to the extremely

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high temperatures of molten rock called magma. Almost everywhere, the shallow
ground or upper 10 feet of the Earth's surface maintains a nearly constant
temperature between 50° and 60°F (10° and 16°C). Geothermal heat pumps can tap
into this resource to heat and cool buildings. A geothermal heat pump system
consists of a heat pump, an air delivery system (ductwork), and a heat exchanger-a
system of pipes buried in the shallow ground near the building. In the winter, the heat
pump removes heat from the heat exchanger and pumps it into the indoor air
delivery system. In the summer, the process is reversed, and the heat pump moves
heat from the indoor air into the heat exchanger. The heat removed from the indoor
air during the summer can also be used to provide a free source of hot water.
Biomass electricity is produced through the energies from wood, agricultural and
municipal waste. It helps save on landfill waste but transportation can be expensive
and ecological diversity of land may be affected. In addition, its process needs to be
made simpler. The use of biomass energy has the potential to greatly reduce our
greenhouse gas emissions. Biomass generates about the same amount of carbon
dioxide as fossil fuels, but every time a new plant grows, carbon dioxide is actually
removed from the atmosphere. The net emission of carbon dioxide will be zero as
long as plants continue to be replenished for biomass energy purposes.

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Chapter 2
Literature Survey
Rachit S and Vinod KG discussed about the current status of solar energy in India.
The Ministry of non- convection energy resources, government of India is trying to
increases the power capacity and achieve the target of 100 GW by 2022. This
discussion shows that the status of solar energy is satisfactory in India but some
extra effort is required for betterment of solar source. In spite of reduction of the cost
of solar power, it is expensive source of power compared with conventional sources.
It is very important to support and subsidize the solar power till it can compete with
the conventional sources. The step of Indian government to increases the target is a
very good to become India as one of the most solar powered countries in the world.
Ganesh Hegde and Ramachandra TV, explained the scope of solar energy in Kerala
and Karnataka. The study primarily depends on parameters like geographic location,
earth-sun movement’s solar isolation, potential and availability of solar energy in this
region, techno-economic analysis of the power technologies and utilization, emission
reduction. They observed, both states are power deficit states where the annual
energy consumption is more than the energy generated. They concluded, state
witnessed for major power crisis from last few years and hence power harvesting
from renewable energy source could be the solution for this problems.
N.Sasikumar, Dr.P.Jayasubramaniam, discussed on Solar Energy System in India.
In this paper, Conventional energy sources like coal, oil, natural gas, etc., are limited
in quantity, and if these continue to be depleted at the present rate, these will be
exhausted in the coming decades. Energy demand is resulting in the creation of
fossil fuel based power plants leading to substantial greenhouse gas emissions
having an adverse impact on global warming and climate change, Solar energy
offers a clean, climate-friendly, abundant and inexhaustible energy resource to
mankind. The costs of solar energy have been falling rapidly and are entering new
areas of competitiveness. Solar Thermal Electricity (STE) and Solar Photo Voltaic
Electricity (SPV) are becoming competitive against conventional electricity
generation in tropical countries solar photovoltaic (SPV) cells convert solar radiation
(sunlight) into electricity. A solar cell is a semiconducting device made of Silicon

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materials, when exposed to sunlight, generates electricity. Solar cells are connected
in series and parallel combinations to form modules that provide the required power.
Jagadeesh Anumakonda, argued that amongst the renewable energy sources, wind
is the most matured and clean energy source. The incentives provided by the
government of the India for different state governments helped the nation to raise up
to the fourth position globally next only to Germany, Spain and USA. India’s wind
installations stood at 5300 MW at the end of March 2006, with Tamil Nadu state
having the lion’s share of 3300 MW. The study suggested and stressed that wind
energy development needs to identify core windy sites through Geographical
Information System (GIS), creating wind fund to provide finances to set up wind
farms, wind farm co-operatives, production incentives, with improved design for wind
turbines, financial package, political will to support large scale wind projects through
public sector undertakings, and a remunerative price for wind generated electricity. It
is hoped that wind energy will play a vital role to meet the growing power demand in
the country in general and Tamil Nadu and Andhra Pradesh in particular.
Natarajan Anand and Madsen peter Hauge discussed the requirements for achieving
20% of grid power only from wind power alone in India by 2020. To achieve this
target most important factors to be considered are (1) stable and compatible grid, (2)
appropriate wind assessment and micrositting, (3) coherent and effective nationwide
energy policy and (4) installation and multi megawatt turbine base effective in low
wind speed regimes. Study has mentioned few factors sufficiently enough to
demonstrate a viable market for high electricity penetration from wind energy. It
underscored studies of the European and American experience in wind energy and
adopting it to the local needs. The requirement for grid codes that promote grid
reliability and wind farm controls that work with the grid codes is essential. The
consumption of wind energy through the grid and the compatible generation of wind
power must be matched. The assuagement of the right regions in India for large wind
turbine installations with technology to cater to lower wind speeds has also been
untapped in India and this potential also needs to be actively explored.
Purohit Ishan and Purohit Pallav, analyzed and reviewed the development and
dissemination of wind energy in india. Wind energy growth pattern of India was
reviewed since its inception in 1980s, Wind Energy Technology is currently making a

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significant contribution to the electric power generation in India. However, China has
overtaken India and occupied fourth position in the world in terms of installed wind
power capacity in recent times. Therefore, if India has to match the growth rate in the
global wind energy sector, outstanding regulatory and policy issues need to be
urgently addressed. Wind power penetration is not constrained by technical
problems with wind power technology, but by regulatory, institutional, and market
barriers. It is observed that the presence of such non economic barriers have a
significant negative impact on the effectiveness of policies to develop wind power,
irrespective of the type of incentive scheme. It is observed that in India, even with
highly favourable assumptions, the dissemination of wind energy for power
generation is not likely to reach its maximum utilization potential in another 20 years.
The growth trends of wind power development in the six Indian states indicate that
more than 90% of wind energy potential in India can exploited by the year 2030.
Apart from the existing installation, higher rating capacity wind turbines in place of
old, or lower rating capacity machines, intercropping of small wind mills among
bigger machines, development of offshore wind farms and development of hybrid
turbines are some of the important needs towards the rapid growth of wind industry
in India.

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Chapter 3
Present Energy Scenario
3.1 Present Scenario
The utility electricity sector in India had an installed capacity of 305.55 GW as of 31
August 2016. Renewable power plants constituted 28% of total installed capacity.
The gross electricity generated by utilities is 1,106 TWh and 166 TWh by captive
power plants during the 2014–15 fiscal.[3] The gross electricity generation includes
auxiliary power consumption of power generation plants. India became the world's
third largest producer of electricity in the year 2013 with 4.8% global share in
electricity generation surpassing Japan and Russia.[4]
During the fiscal year 2014-15, the per capita electricity generation in India was
1,010 kWh with total electricity consumption (utilities and non utilities) of 938.82 TWh
or 746 kWh per capita electricity consumption. Electric energy consumption in
agriculture was recorded highest (18.45%) in 2014-15 among all countries.[3]
The per capita electricity consumption is lower compared to many countries despite
cheaper electricity tariff in India.
Table 3.1 Grid connected installed capacity from all sources as of 2016.
Sources Installed Capacity (MW)
Renewable Energy Sources 42,849.38
Large Hydro 42,783.42
Coal 185,992.88
Gas 24,508.63
Diesel 918.89
Nuclear 5,780.00
Total 302,833.20

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3.2 Captive power
The installed captive power generation capacity (above 1 MW capacity) in the
industries is 47,082 MW as on 31 March 2015. Another 75,000 MW capacity diesel
power generation sets (excluding sets of size above 1 MW and below 100 kVA) are
also installed in the country. In addition, there are innumerable DG sets of capacity
less than 100 kVA to cater to emergency power needs during the powe outages in all
sectors such as industrial, commercial, domestic and agriculture.
Installed Grid Power Capacity India
2016
RES 14.1%
Large Hydro
14.1%
Coal 61.4%
Gas 8.1%

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Table 3.2 Captive Power Generation
Source Captive Power
Capacity (MW)
Share
Coal 27,588 58.60%
Hydroelectricity 83 0.17%
Renewable
energy source
Included in 'Oil' ---
Natural Gas 5,215 11.08%
Oil 14,196 30.17%
Total 47,082 100.00%
3.3 Demand trends
During the fiscal year 2015-16, the electricity generated in utility sector is 1,090.851
billion KWh with a short fall of requirement by 23.557 billion KWh (-2.1%) against the
2.2% deficit anticipated. The peak load met was 148,463 MW with a short fall of
requirement by 4,903 MW (-3.3%) against the 2.7% deficit anticipated. In LGBR
2016 report, India's Central Electricity Authority anticipated for the 2016–17 fiscal
year, a base load energy surplus and peaking surplus to be 1.1% and 2.6%
respectively. Though few regions are expected to face energy shortage, power
would be made available adequately from the surplus regions with the higher
capacity inter regional transmission links. By the end of calendar year 2015, India
has become power surplus country despite lower power tariffs.

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Table 3.3 All India (Anticipated) Power Supply Position in FY 2016-17
Regio
n
Energy Peak Power
Requirem
ent (MU)
Availabil
ity (MU)
Surplus(+)/Def
icit(-)
Dema
nd
(MW)
Suppl
y
(MW)
Surplus(+)/Def
icit(-)
Northe
rn
357,459 351,009 -1.8% 55,800 54,90
0
-1.6%
Wester
n
379,087 405,370 +6.9% 51,436 56,71
5
+10.3%
Southe
rn
310,564 320,944 +3.3% 40,145 44,60
4
-10.0%
Easter
n
151,336 135,713 -10.3 % 21,387 22,44
0
+4.9%
North-
Easter
n
16,197 14,858 -8.3% 2,801 2,695 -3.8%
All
India
1,214,642 1,227,89
5
+1.1% 164,37
7
169,4
03
+2.6%

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Chapter 4
Renewable Energy Scenario needs of the Hour
Renewable energy in India comes under the purview of the Ministry of New and
Renewable Energy (MNRE). Newer renewable electricity sources are targeted to
grow massively by 2022, including a more than doubling of India's large wind power
capacity and an almost 15 fold increase in solar power from April 2016 levels. Such
ambitious targets would place India amongst the world leaders in renewable energy
use and place India at the centre of its International Solar Alliance project promoting
the growth and development of solar power internationally to over 120 countries.
India was the first country in the world to set up a ministry of non-conventional
energy resources, in early 1980s. As of 30th April 2016 India's cumulative grid
interactive or grid tied renewable energy capacity (excluding large hydro) reached
about 42.85 GW, surpassing the installed capacity of large scale hydroelectric power
in India for the first time in Indian history. 63% of the renewable power came
from wind, while solar contributed nearly 16%.Large hydro installed capacity was
42.78 GW as of 30 April 2016 and is administered separately by the Ministry of
Power and not included in MNRE targets.
From 2015 onwards the MNRE began laying down actionable plans for the
renewable energy sector under its ambit to make a quantum jump, building on strong
foundations already established in the country. MNRE renewable electrictricity
targets have been upscaled to grow from just under 43 GW in April 2016 to 175 GW
by the year 2022, including 100 GW from solar power, 60 GW from wind power, 10
GW from bio power and 5 GW from small hydro power. The ambitious targets would
see India quickly becoming one of the leading green energy producers in the world
and surpassing numerous developed countries. The government intends to achieve
40% cumulative electric power capacity from non fossil fuel sources by 2030.

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Table 4.1 Installed Grid Interactive Renewable Power Capacity in India 2016
Source Total Installed
Capacity(MW)
2022 target (MW)
Wind Power 27,441.15 60,000.00
Solar Power 8,062.00 100,000.00
Biomass Power 4,860.83 10,000.00
Waste to Power 115.08 ------
Small Hydro Power 4,304.27 5,000.00
Total 44,783.33 175,000.00
PresentRE Scenario 2016
Wind power 61.3
%
Solar Power 18
%
Biomass Power
10.9 %
Small Hydro
Power 9.6%

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The figures above refer to newer and fast developing renewable energy sources and
are managed by the Ministry for New and Renewable Energy (MNRE). In addition as
of April 30th 2016 India had 42,783 MW of installed large hydro capacity, which
comes under the ambit of Ministry of Power.
In terms of renewable energy sources under the responsibility of the Ministry of New
and Renewable Energy by April 2016, wind power was the leading source of
renewable power with 26.9 GW installed capacity, almost two thirds of the total
renewable power installed capacity. Next came solar power with 6.8 GW installed
capacity and biomass power with 4.8 GW accounting for 15.8% and 11.3% of the
total renewable power installed capacity. Small hydro power accounted for 4.3 GW
and waste-to-power accounted for just over 0.1 GW installed capacity. Total installed
renewable power capacity in this category was just under 43 GW by April 2016.
In terms of meeting its ambitious 2022 targets, as of April 30, 2016, wind power was
almost half way towards its goal, whilst solar power was below 7% of its highly
ambitious target, although expansion is expected to be dramatic in the near future.
Bio energy was also at just under half way towards its target whilst small hydro
power was already 85% of the way to meeting its target. Overall India was 24.5%
towards meeting its final 2022 renewable power installed capacitiy of 175 GW.
Table 4.2 Region Wise target
Region Solar(MW) Wind(MW) SHP(MW) Biomass
(MW)
Northern
Region
31120 8600 2450 4149
Western
Region
28410 22600 125 2875
Southern
Region
26531 28200 1675 2612
Eastern
Region
12237 ---- 135 244
North Eastern
Region
1671 615
Other
Region
31 600 120

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All India 100000 60000 5000 10000
Table 4.3 The electricity sector requirement and availability in India 2016
Energy in MU Peak in MW
Availability 1,030,785 141,160
Requirement 1,068,923 148,166
Shortage 38,138 7,006
Percentage shortage 3.6 4.7
Table 4.4 Target of Wind power generation by 2022
Year Wind power
(MW)
2015-16 3000
2016-17 4000
2017-18 7000
2018-19 10000
2019-20 11000
2020-21 12000
2021-22 13000
Total 60,000

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Table 4.5Target of Solar power generation by 2022
Year Rooftop type solar
power projects (MW)
Ground Mounted
type solar power
project (MW)
Total (MW)
2015-16 300 2200 2,500
2016-17 4,800 7,200 12000
2017-18 5,000 10,000 15,000
2018-19 6,200 10,300 16,500
2019-20 7,200 10,300 17,500
2020-21 8,200 9,800 18,000
2021-22 9,200 9,300 18,500
Total 41,900 59100 100,000

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Chapter 5
Steps to Improve
5.1 Bundling of RE power with cheaper conventional power: As long as
unallocated quota for conventional power is available, it must be used to bundle with
RE power to incentivize procures for buying RE. This has no financial impact on the
Government, and offers benefits related to timely payments, secured power
purchase agreements, and generators receive the full tariff for RE, and hence do not
need any additional incentives.
5.2 Accelerated Depreciation (AD): Options such as AD may be continued with
improvements in design of the mechanism such that operational performance gets
incentivized. Further, specific tools through which the tax credits can be passed on to
individual / institutional investors will help broad-base the class of beneficiary
investors, resulting in enhanced investments. The mechanism would however
require additional support from other mechanisms to bring tariff parity with the
alternative sources, also because not all classes of investors can benefit from it.
5.3 Generation Based Incentive as a bridge mechanism: Till such time the utilities
pay-out for RE power is greater than marginal cost of conventional power, GBI could
act as a bridge instrument, with or without any other mechanism being available. For
example, if AD is able to bring down the costs partially, the GBI could bring it down
further to meet the utility’s cost of procuring alternative power source. In addition, the
GBI is also an output /performance linked incentive and hence has very limited
possibilities of misuse. An inherent limitation for GBI has been its ability to offer tariff
comfort at the procurers’ end, as most feed-in-tariffs approved by state regulatory
commissions do not even consider GBI to be available (or not available).
A possible change in GBI mechanism is to offer the GBI payments to the procuring
utility, with clearly defined responsibilities for the discoms. Such a change could
motivate utilities to buy more RE, enhance transparency, facilitate timely payments
to the generators and ease out the administration of the incentive. The Central
Government would only need to deal with the discoms and can offer differential GBIs
based on cost differentials rather than fixed GBI for all RE generation. Such GBI
payments can be related to the difference between the tariffs of RE and alternate

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marginal source, and can be <75%> of such differential. The remaining <25%>
would need to be covered either by the state governments or discoms themselves,
thus ensuring prudence in RE procurement process.
5.4 Interest rate / tenure based interventions: Any such interventions would have
to be designed to ensure that they incentivize performance and do not act as
markets distortions. To be more specific, these interventions should either be made
available to identified pool of projects and their tariff considerations / setting should
be done separately. In absence of such specific arrangements, availability of these
incentives to a handful of projects / discoms / states could be a potential distortion
against the remaining market.
Another way to operationalize such an intervention is by offering such low cost / long
term capital (lending) to all RE projects through balance sheet based refinancing to
lenders through a central entity. The project risks would still have to be borne by the
lenders in the normal course so that their due diligence process does not get
impacted. The assumption here is that enough low-cost long-term money can be
made available to the identified central entity.
Towards designing such an intervention, central-government entities (e.g. IREDA,
PFC) could pool various sources of low cost funds from domestic as well as
international sources. This pool of funds could be administered and managed to
refinance banks and financial institutions at a low rate, with upper limits of mark-up
predefined so that the sector gets the benefits. Alternatively, the central entity could
pool incentives available for interest subvention, and buy down the rate of interest for
all RE projects. In any case, such preferential terms of finance should be considered
while calculating feed-in-tariffs or any other way of RE power procurement.
5.5 Innovative interventions: The Expert Group India debated on the possibility of
dollar denominated tariffs and back loaded RE tariffs. Back loaded RE tariffs to a
certain extent is possible if lenders can be convinced to back load their interest and
principal repayments. Beyond a certain point, any further back-loading would require
large Government support either in form of subsidies or interest subventions. The
extent of such desired interventions would largely depend on asset liability ratio of

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lenders, the acceptable levels of mismatch, lenders’ comfort with the sector and
extent of back-loading required.
For the dollar (or other foreign currency) denominated tariffs, the design of
intervention would largely depend on the entity which agrees to bear the risks of
currency fluctuations. If the risk has to be built into the tariff itself, same may not be
very effective in bringing down the tariff. Foreign investors would certainly find this
very interesting as their return will be ensured. The risk reward division between
government, utilities and generators would have to be assessed carefully.
5.6 Viability Gap Funding: The current model of VGF for solar projects is unique. It
is a high initial cost option, with part of the payments being deferred to ensure
performance. As such, it is a hybrid of VGF and GBI, and still requires significant
initial outlays, with no exceptional gains. The mechanism seems inferior to most
other mechanisms.
5.7 Strengthen the institutional structure to facilitate effective disbursement of central
financial assistance.
5.8 Mandate conditions such as meeting a minimum level of Renewable Purchase
Obligation (RPO), timely payments to generators etc.
5.9 Adopt an integrated approach to power sector planning, including generation,
transmission and distribution.
5.10 Undertake measures to reduce overall project risks.
5.11 Structure reforms such that utility tariffs are reflective of true costs and system-
wide efficiencies or inefficiencies.
5.12 Strengthen (and create if required) institutional structure to monitor
implementation of Government policies and programmes and accelerate cost-
effective development of the sector.

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Chapter 6
Projects undertaken by MNRE
The Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of the
Government of India for all matters relating to new and renewable energy. The broad
aim of the Ministry is to develop and deploy new and renewable energy for
supplementing the energy requirements of the country.
Creation CASE and Ministry:
1. Commission for Additional Sources of Energy (CASE) in 1981.
2. Department of Non-Conventional Energy Sources (DNES) in 1982.
3. Ministry of Non-Conventional Energy Sources (MNES) in 1992.
4. Ministry of Non-Conventional Energy Sources (MNES) renamed as Ministry of
New and Renewable Energy (MNRE) in 2006.
The role of new and renewable energy has been assuming increasing significance in
recent times with the growing concern for the country's energy security. Energy self-
sufficiency was identified as the major driver for new and renewable energy in the
country in the wake of the two oil shocks of the 1970s. The sudden increase in the
price of oil, uncertainties associated with its supply and the adverse impact on the
balance of payments position led to the establishment of the Commission for
Additional Sources of Energy in the Department of Science & Technology in March
1981. The Commission was charged with the responsibility of formulating policies
and their implementation, programmes for development of new and renewable
energy apart from coordinating and intensifying R&D in the sector. In 1982, a new
department, i.e., Department of Non-conventional Energy Sources (DNES), that
incorporated CASE, was created in the then Ministry of Energy. In 1992, DNES
became the Ministry of Non-conventional Energy Sources. In October 2006, the
Ministry was re-christened as the Ministry of New and Renewable Energy.

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6.1 Top Five Solar Projects
Name of the Plant Total Capacity (MW)
Kamuthi Solar Power Project, Tamilnadu 648
Charanka Solar park- Charanka village, Patan district,
Gujarat
221
Welspun Solar MP project , Neemuch, Madya Pradesh 151
Sakri solar plant, Maharastra 123
NTPC Solar plants, New Delhi 110
6.1.1Kamuthi Solar Power Project, Tamilnadu (648 MW)
Fig.6.1 Kamuthi Solar Power Project
Tamil Nadu is the state with highest installed solar power capacity in India as on 21
September 2016. Kamuthi Solar Power Project with 648 mw capacity at a single
location, was formally dedicated to the nation. With the addition of this plant, the total
installed capacity in Tamilnadu is 2100 MW. This constitutes 21% of the installed

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renewable energy source in the state. The other 79 % is constituted by wind power.
The plant is set up at Kamuthi, Ramanathapuram, in Tamil Nadu with an investment
of Rs 4,550 crore. The plant consists of 3.80 lakh foundations, 25 lakh solar
modules, 27,000 mt of structure, 576 inverters, 154 transformers along with 6,000-
km cables. About 8,500 personnel worked on average installing about 11 MW in a
day to set up the plant in the stipulated time.[17] Tamilnadu is now the leader in
harnessing renewable energy using Solar and Wind energy.
Kamuthi Solar Power Project is a solar photovoltaic power generating station
at Kamuthi, 90 km from Madurai, in the state of Tamil Nadu, India.This project has
been commissioned by Adani Power.
With a generating capacity of 648 MW at a single location it is billed as the world's
largest single location solar project.[4] The project was completed on 21 September
2016[5] with an investment of around ₹ 4,550 crore. The solar plant consists of
2,500,000 solar modules and 27,000 metres of structures. It consist of 576 inverters
and 154 transformer and almost 7500 km of cables.
Panels occupy 1270 acres of land. 30,000 tonnes of galvanised steel were used.
About 8500 personnel worked on average installing about 11 MW in a day to set up
the plant in stipulated time.
6.2 Top Five Wind Projects
Wind Power Plant Total
Capacity(MW)
Muppandal windfarm Kanyakumari,
Tamilnadu
1500
Jaisalmer Wind park, Rajasthan 1064
Brahmanvel wind farm Dhule, Maharashtra 528
Dhalgaon Windfarm Sangli, Maharastra 278

2022
Vankusawade Wind park Satara district,
Maharastra
259
6.2.1 Muppandal windfarm Kanyakumari
Fig. 6.2 Muppandal windfarm Kanyakumari
• 1500 MW, which is about 20% of that of India.
• 3000 turbines.
• On Shore Wind Farm.
• The wind speed at this place is 20-25 km and available throughout the year.
• It is peak during July-August when the wind energy is expected to be higher
and last normally till October every year.
Tamil Nadu's wind power capacity is around 29% of India's total. The Government of
Tamil Nadu realized the importance and need for renewable energy, and set up a
separate Agency, as registered society, called the Tamil Nadu Energy Development
Agency (TEDA) as early as 1985. Now, Tamil Nadu has become a leader in Wind
Power in India. In Muppandal windfarm, Tamil Nadu the total capacity is 1500MW,
which is the largest in India. The total wind installed capacity in Tamil Nadu is
7633MW. During the fiscal year 2014-15, the electricity generation is 9.521 billion
Kwh which is nearly 15% capacity utilization factor.

2022
Chapter 7
A case study under MNRE
7.1 Micro grid at Darewadi
Fig.7.1 Micro grid at Darewadi
A small hamlet of 39 households (Population 220) located in Junnar tehsil of Pune
district. Gram Panchayat of this hamlet is Devale & its distance from tehsil is 40 km.
 9.36 kWp solar micro grid in operation since July 2012.
 Complete ownership of plant and micro grid by village energy committee
(Vandev Gramodyog Nyas).
 Done in partnership with Bosch Solar Energy AG as a research and pilot
project.
 Cost of the project - INR.30 Lakhs.
 MNRE today provides 30% subsidy to all off-grid projects including rural
micro-grids.
 Electricity consumption is metered and consumers are charged for their
usage, which can take care of operations and maintenance of the plant.

2022
 Current collection from all beneficiaries is ~ INR.5, 500/- per month and
increasing with realization of latent demand (total collected so far is INR. 1.05
Lakh, over a period of 21 months) till May,2014.
 10 TV sets, 2 computers, 2 water pumps and 1 flour mill in operation apart
from basic home and street lighting.
 Local youth trained to maintain plant, generate bills and collect payments.
System details
• Solar Photovoltaic capacity : 9.36 kWp
• Solar Modules : 240 Wp, 39 Nos. mono-crystalline, Bosch make.
• Battery bank : 48 V, 600 Ah, VRLA, Amaron make.
• Inverter: 5 kW, 2 no. Sunny Island SI 5048 and 10 kW, 1 no. Sunny mini
central, SMA make.
• Mini-grid : 230 V, 50 Hz, 17 RSJ poles, grid length ~1.5 km.
Table 7.1 Impact assessment
Before installation After solar grid installation
There was no electricity available. 39 houses with metered high quality
electricity - no significant outage.
Kerosene was used for lighting Average 3 LED lights per house
No TVs and other appliances were used. 9 TVs with satellite dish connections.
Lengthy walk was involved for
grinding grain.
2 computers installed, 1 grinding mill in
operation.
No water pumps for irrigation and
Households.
2 water pumps in operation
Local youth trained and ready for
scaling up elsewhere.

2022
Chapter 8
Karnataka Role
Karnataka Renewable Energy Development Limited is a state nodal agencies under
MNRE, India. KREDL is an organization working under the purview of Energy
Department Government of Karnataka. The objectives is to promote renewable
energy in the state and to initiate all necessary actions for Energy Conservation.
Works through various Governmental Agencies, Private Organizations, NGO’s and
Accredited energy auditors.
The Karnataka Renewable Energy Development Ltd is a organization devoted
entirely to the promotion of non-conventional energy sources in Karnataka. Our aim
is to promote for harnessing energy from wind, small hydro, biomass, solar energy
and energy recovery from wastes through private investment. The company advises
the Government pf Karnataka on policies to be adopted for ensuring a systematic
and balanced growth of projects for harnessing renewable energy sources.
Create synergies between industry, finance, government, and technical experts to
evaluate challenges and opportunities arising from law and policy. Make politically
feasible recommendations to promote clean energy. Catalogue best practices in
renewable energy regulation at national and regional levels. Disseminate findings
through renewable energy networks and global partnerships, targeted events and at
international negotiating fora and act as a catalyst for change to promote policy and
legal instruments that will enhance the market position for renewable energy.

2022
Table 8.1 KREDL 2016 August Report
RE sources Alloted Capacity in
MWs
Commissioned
Capacity in MWy in
MW
Cancelled Capacity
in MWs
Wind 14518.32 3071.64 4244.59
Hydro 3020.86 838.46 729.57
Solar 2367.00 203.13 90.00
Cogen 1916.85 1267.05 0.00
Biomass 371.18 134.03 0.00
Muncipal solid
Waste
25.50 0.00 0.00
Total 22219.70 5514.31 5064.15

2022
Chapter 9
Projects Under Taken by KREDL
Karnataka is blessed with abundant solar resource in the state, with 300 sunny days
in a year and lower cosine losses due to its proximity to the equator. It is also one of
the leading states in terms of adoption of solar water heating systems in the country
and has a thriving manufacturing base across the value chain. The recently launched
Solar Policy 2014-2021 is a significant step in this direction. The policy is
comprehensive and has ambitious targets. However, its success will depend largely
on its implementation, requiring interdepartmental coordination.
For utility scale projects, Karnataka will have to attract projects through Jawaharlal
Nehru National Solar Mission (JNNSM) mechanism to limit the subsidy support.
JNNSM projects can avoid state subsidy support by about INR 48 crores/year on
100 MW of projects built under JNNSM as compared to that under state policy.
Some of the savings can be used to help consolidate land parcels and lease it to
prospective developers. Karnataka has traditionally not been the preferred
destination for JNNSM projects as compared to Rajasthan and Madhya Pradesh due
to limited availability of land parcels and land connectivity.
Karnataka has the third largest installed base of wind capacity in the country. The
current deployment is about 2200 MW for a state where the potential has been
estimated to be over 100,000 MW (CSTEP, 2013). The capacity addition in
Karnataka has plateaued to about 200 MW per year. However, Karnataka has had
the slowest uptake in wind capacity, both in terms of year-on-year percentage and
megawatts capacity, among the 4 states having significant on shore wind potential –
others being Tamil Nadu, Maharashtra and Rajasthan. Moreover, most of the large
wind farms proposed in the state are yet to take off and bulk of the capacity
commissioned in state is fragmented, with 90% of the projects, of having less than
20 MW capacity.
Some Recent Solar Projects
• Shivanasamudra (10 MW), Mandya Karnataka.
• Belakawadi (5 MW), Mandya Karnataka.
• Itnal Photovoltaic Plant (3 MW), Belguam Karnataka.
• Kolar Photovoltaic Plant (3 MW), Yalesandra, Kolar District, Karnataka.

2022
• Yapaladinni (3 MW), Raichur Karnataka.
9.2 Shivanasamudra (10 MW), Mandya
Fig.9.1 Shivanasamudra (10 MW), Mandya
• BHEL has commissioned ( July 2015) a 10 MW solar plant for KPCL in that
state.
• The SPV Plants are built using Crystalline Silicon Photovoltaic technology
which is well proven and has the longest operational experience across the
world.
• The Bharat Heavy Electricals Ltd (BHEL) has bagged Rs 68 crore worth order
for setting up a 10 MWp (mega watt peak) grid-connected solar power plant
for the Karnataka Power Corporation Ltd (KPCL).
Some Major Wind Projects
• Saundatti Wind Farms (72MW) Belguam. Karnataka.
• Tuppadahalli (56.1 MW) Chitradurga, Karnataka.

2022
• Nuziveedu Seeds NSL Renewable Power (50.4 MW), Bhimasamudra
Karnataka.
• Shah Gajendragarh (15 MW) Gadag, Karnataka
• Jogmatti BSES (14 MW) Chitradurga.
9.3 Tuppadahalli (56.1 MW) Chitradurga, Karnataka
Fig. 9.2 Tuppadahalli wind farm
• Project is owned, operated and developed by ACCIONA Energy.
• Total 34 wind turbines rated at 1.65MW each.
• Each turbine has a rotor diameter of 82m and hub height of 78m.
• The wind farm produces 140GWh of clean energy per annum, which is
sufficient to power around 35,000 Indian homes.
MESCOM, state-owned and operated distribution utility, purchases the power
generated by the project under a 20-year power purchase agreement.

2022
Chapter 10
A case study Under KREDL
10.1 BERI project in Kabbigere village
Fig 10.1 Biomass Gasification system
The BERI (Biomass Energy for Rural India) project is conceptualized at developing
and implementing a bioenergy technology package to reduce GHG (greenhouse
gas) emissions and to promote sustainable and participatory approach in meeting
rural energy needs. The total budget for the initiative is $8,623,000 and the project
proponents include the GoK (Government of Karnataka); Gram Panchayat people’s
representatives, private investors, and people residing in the targeted project
villages; UNDP (United Nations Development Programme) funded by the GEF
(Global Environment Facility); and co-financed by the ICEF (India-Canada
Environment Facility); GoK; MNRE (Ministry of New and Renewable Energy), GoI
(Government of India); and beneficiaries.
The project is being implemented since 2001 in five village clusters consisting of 28
villages in Tumkur district of Karnataka. The project has been designed to showcase
bioenergy technologies that include bioelectricity produced from biomass
gasification, community biogas plants, and efficient cookstoves. It was designed in
such a way that the bioelectricity produced makes use of the biomass coming from
energy plantations raised for the purpose.

2022
Gasifier-based plants were established in three clusters. A 500-kW capacity system
was installed in Kabbigere (including two gasifier systems of 100 kW each and one
of 200 kW using 100% producer gas and another with 100 kW dual fuel). These
plants together have generated 1,520,000 kWh of electricity as of June 2012. In
addition, two more gasifier-based power plants of 250-kW capacity each have been
installed in Seebanayanapalya and Borigunte.
The power generated is evacuated to the BESCOM (Bangalore Electricity Supply
Company) grid. Generation and distribution are synchronized to the grid through a
dedicated 11-kV transmission line. The BERI Society and Tovinakere Grama
Panchayat have signed a first-of-its-kind PPA (power purchase agreement) with
BESCOM to sell the power produced to the state power utility. The tariff set was Rs
2.85/kWh.

2022
Chapter 11
Results and Discussion
The cost of government support for wind and solar power under two scenarios,
based on forecasts: a best case scenario, where the LCOE for renewable energy is
low while the LCOE for fossil fuels is high, leading to low government support
required; and the worst case scenario, where the LCOE for renewable energy is high
and the LCOE for fossil fuels is low, leading to a high government support required.
Comparing the LCOEs of renewable energy with that of the baseline coal-based
power under the worst and best case scenarios.
11.1 Comparing The Levelized Cost of Renewable Energy with The Baseline
By comparing the levelized costs of electricity from solar and wind power to a
baseline of the levelized cost of electricity from coal, we can then estimate the cost
of government support required to meet its renewable energy targets.
11.2 Worst case scenario
Under the worst case scenario, the LCOE of solar power would remain more
expensive than the LCOE of coal beyond 2022. Therefore, it would require continued
government support through 2022. The LCOE of wind power would become cheaper
than that of coal in 2019-20, and would therefore only require government support
until 2019-20. In 2015-16, the LCOEs of solar and wind power would be 40% and
11% more expensive than that of baseline coal, respectively.

2022
11.1 Graph LCOE vs Year (worst case)
11.3 Best case scenario
Under the best case scenario, the LCOE of solar power would become cheaper than
the LCOE for baseline coal after 2016-17. Hence, solar power projects would not
require government support after 2016-17. The LCOE of wind power would already
be cheaper than that of coal power. Hence, wind power projects would not require
any government support under the best case scenario. In 2015-16, the LCOE for
solar power would be 14% more expensive than that of baseline coal.

2022
11.2 Graph LCOE vs Year (Best case)

2022
Chapter 12
Conclusions
• In this study it is observed that India have very high natural resources of
renewable energy.
• Looking at the present scenario, a sustainable energy system in country like
India is essential/the need of the hour for sustainable development.
• Indian government have set a separate ministry MNRE for new and
renewable energy sources which will deal with all the energy related
programs.
• MNRE have several program to encourage and share the technology of
renewable sources.
• With the help of Indian government and state government several subsidies
are given to encourage the move towards renewable energy sources.
• Climate change, emission of greenhouse gases and depletion of fossils fuel
boost the development and promotion of renewable energy in India.
• In order to increase renewable energy investments in India, it’s therefore
crucial to provide strong policy support and increase financier’s confidence.
• Considering the growth of renewable energy sector it can be said that India
can be reaching its targets.

2022
References
Journal articles
• Growth of Renewable Energy in India Arpit Gupta, Balkrishan sahu, Archana
soni, International Journal of Innovative Science, Engineering & Technology,
Vol. 3 Issue 6, June 2016.
• Renewable Energy Scenario in India: Opportunities and Challenges R. K.
Gera1, Dr H.M.Rai,Yunus Parvej and Himanshu Soni Indian Journal of
Electrical and Biomedical Engineering Volume.1 Number.1 January-June
2013, pp.10-16.
• Assessment of Renewable Energy in India, Rijul Dhingra, Abhinav Jain,
Abhishek Pandey, and Srishti Mahajan, International Journal of Environmental
Science and Development, Vol. 5, No. 5, October 2014.
Electronic sources
• http://www.mnre.gov.in
• http:// www.kredlinfo.in/
• https://en.wikipedia.org/wiki/Renewable_energy_in_India
• https:// www.gramoorja.in
• https://en.wikipedia.org/wiki/Electricity_sector_in_India
• Report of expert group on 175 GW RE by 2022.
• MNRE Empowering Rural india RE way inspiring success stories.

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