Renewable energy contributes substantially to the total power generation capacity in India. In fact in FY’2012, only about 56% of the total electricity produced used coal as the source of fuel to generate electricity, 20% power was produced by hydro or water based sources, 12% electricity was generated using renewable energy sources and gas contributed 9% to the total power generation. while 2% and 1% contribution came from nuclear and diesel based power for the FY’2012.
Indian Government gives multiple benefits to renewable energy projects such as no need for industrial clearance, availability of loan, excise duty exemption, custom duty concession, financial support to renewable energy’s R&D projects, income tax holiday, accelerated depreciation, preferential tariffs, interest and capital subsidies, energy buy-back and third party sale and trading. At the same time, the Government is also trying to reduce the capital cost of renewable energy projects so that more and more companies can invest in the sector. To fulfill this aim, Government is trying to adopt latest and suitable technologies in the sector and promote healthy competition among the players.
Backed by strong policy measures, India has become one of the hottest destinations for investment as it has witnessed more than 60% growth in investment rate. During the year 2011, India has received over US$ 10 Billion of investment showing the fastest expansion in investment trend. Additionally, Introduction of Jawaharlal Nehru Solar Mission (JLNSM) for promotion of solar power is expected to drive huge investment in this field as government has targeted to install 20 GW of solar power by 2020.
Government has set a target to generate 53,000 MW from renewable energy sources by 2017. To achieve this ambitious target government has introduced several programs such as Generation Based Incentives (GBI), Renewable Energy Certificates, Feed-in-Tariff (FIT) support, solar specific, Renewable Purchase Obligation (RPO), Generation Based Incentives (GBI) and long term PPAs.
“India Renewable Energy Sector Analysis” Report gives detailed overview on the following aspect related to renewable energy sector in India: