Renewable energy is deemed as the future of energy and India is working in that direction with its various policies. The government has planned a number of projects that would be launched in the next few years and these will enhance India’s renewable energy status. The research and development phase has already passed and the execution of projects is underway. Given the different policies and incentive packages launched by the government to attract investment in the sector, renewable energy in India is bound to grow at an unprecedented pace. The basic infrastructure has been set up that will facilitate the future of renewable energy in the country.
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 fulfil this aim, Government is trying to adopt latest and suitable technologies in the sector and promote healthy competition among the players.
India is one of the few countries to have set up an independent ministry to overlook the growth of renewable energy. The Ministry of New and Renewable Energy is the authority that launches the various schemes and projects to enunciate the renewable energy growth and to see that the schemes are properly utilized for the benefit of the nation. MNRE has proposed many schemes that will determine the future of renewable energy in India. These projects will establish a proper growth strategy in the future for the exploitation of the huge potential of renewable sources of energy in the country. There is a large amount of renewable energy potential that can be developed with help from the incentive schemes initiated by the ministry.
In FY’2013, around 57% of the total electricity produced used coal as the source of fuel to generate electricity, 17% 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. 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 Opportunity Analysis” Report gives detailed overview on the following aspect related to renewable energy sector in India: