2. Table of Contents
Installed Power Capacity
Renewable Energy Potential
Renewable Installed Capacity
Schemes and Incentives
Renewable Purchase Obligation
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 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 3475 MW 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.
The Ministry of New and Renewable Energy (MNRE) is nodal ministry of the Government of
India for matters relating to new and renewable energy. It promotes renewable energy
technologies to enhance their share in the total energy mix.
The MNRE lays down the overall policy guidelines 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.
5. Installed Power Capacity
Renewable energy sources contribute about 30% (including hydro) in India's primary energy
Source-wise Installed Power Generation Capacity
6. Renewable Energy Potential
India has about 2,45,000 MW of renewable energy potential. This includes over 1,00,000 MW
each from Wind and Solar Energy, 20,000 MW from Small Hydro Power and balance 25,000
MW from Bio-energy sources.
Maximum potential is in the states of Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh and
S. No. Resource Estimated Potential (MW) Remarks
1 Solar Power 100,000 30-50 MW/sq. km.
2 Wind Power 100,000 At 80 m height
3 Small Hydro Power 20,000
4 Biomass Power 17,000
5 Bagasse Cogeneration 5,000
6 Municipal Solid Waste to Energy 2,600
7 Industrial Waste to Energy 1,280
7. Renewable Installed Capacity
As on 31 December 2014, India had 33,791.67 MW of grid connected installed renewable
8. Year-wise Growth
In the last 10 years, grid-interactive renewable power has increased at CAGR of 21.03%.
Maximum capacity addition was achieved in 2011-12 in which 4943 MW was added.
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Cumulative Renewable Capacity (GW)
9. Wind: Incentives & Schemes
Generation Based Incentive (GBI)
The Ministry of New & Renewable Energy has announced a scheme on Generation Based
Incentive (GBI) for grid connected wind power projects. A GBI is provided to wind electricity
producers @ Rs. 0.50 per unit of electricity fed into the grid for a period greater than 4 years
and a maximum period of 10 years with a cap of Rs. 1 crore per MW.
The total disbursement in a year cannot not exceed one-fourth of the maximum limit of the
incentive i.e. Rs. 25.00 Lakhs per MW during first four years.
10. Solar: Incentives & Schemes
Viability Gap Funding (VGF)
Solar PV Power projects under Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II,
Batch-I of total 750 MW with Viability Gap Funding (VGF) support from National Clean
Energy Fund (NCEF).
This scheme is being implemented by the Solar Energy Corporation of India (SECI), a PSU of
MNRE. VGF support is up to 30% of Project Cost limited to Rs.2.50 crore/MW based on
reverse bidding process.
11. SHP: Incentives & Schemes
SHP Projects in State Sector
SHP Projects in Private / Joint / Cooperative Sector
100 KW to 1000 KW;
1 MW to 25 MW; INR
Special category and NE
75,000 per KW
7.5 Crores / MW limited to 20 crore per
Other States 35,000 per KW
3.5 Crores / MW limited to 20 crore per
Areas Up to 25 MW; INR
N E Region, J & K, H.P. & Uttarakhand
(Special Category States)
1.5 crore/ MW limited to 5.00 crore per project
Other States 1.0 crore/ MW limited to 5.00 crore per project
12. Renewable Purchase Obligation
The Electricity Act, 2003 mandates the State Electricity Regulatory Commissions (SERCs) to
specify Renewable Purchase Obligation (RPO) for the obligated entities from renewable
energy in their States. All SERCs except Sikkim have specified RPO targets.
RPO stipulates minimum percentage of renewable energy in energy mix of Distribution
licensee, Open Access Consumer and Captive consumer.
Renewable Energy Certificates (REC)
In January 2010, the Central Electricity Regulatory Commission (CERC) issued a notification
on 'Terms and Conditions for recognition and issuance of Renewable Energy Certificate
(REC) for Renewable Energy Generation'. REC seeks to address the mismatch between
availability of renewable sources and the requirements of the obligated entities to meet their
renewable purchase obligation.