The Union Minister for New & Renewable Energy and Power has revealed India’s plans to substantially increase its renewable energy capacity. The Ministry of New and Renewable Energy (MNRE) is actively working towards achieving a target of 500 GW of installed electricity generation capacity from non-fossil sources by 2030. A press release on this plan was issued on December 23, 2023.
India has submitted its Nationally Determined Contribution (NDC) to the United Nations Framework Convention for Climate Change (UNFCCC), committing to achieving approximately 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
To accomplish these targets, the Government of India has implemented a series of specific measures, including:
- Waiver of Inter-State Transmission System (ISTS) Charges: The waiver is applicable for inter-State sale of solar and wind power projects commissioned by June 30, 2025, and graded ISTS charges thereafter.
- Renewable Purchase Obligation (RPO): The trajectory for RPO has been declared up to the year 2030.
- Launch of New Schemes and Programs: Various schemes have been initiated, such as the Development of Solar Parks, Ultra Mega Solar Power Projects Scheme, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Yojana (PM-KUSUM), Grid Connected Solar Rooftop Programme, CPSU Scheme Phase-II, Production Linked Incentive Scheme under the National Programme on High Efficiency Solar PV Modules, and others.
- Ultra Mega Renewable Energy Parks: These parks provide land and transmission to renewable energy developers on a plug-and-play basis.
- Infrastructure Development: New transmission lines and sub-stations are being established for the efficient evacuation of renewable power.
- Project Development Cell: A cell has been set up to attract and facilitate investments in the renewable energy sector.
- Bidding Guidelines: Standard Bidding Guidelines have been issued for tariff-based competitive bidding processes for procurement of power from grid-connected solar PV and wind projects.
- Dispatch Against Letter of Credit (LC): Orders have been issued to dispatch power against Letter of Credit or advance payment, ensuring timely payments to renewable energy generators.
- National Green Hydrogen Mission: Launched with the objective of making India a hub for green hydrogen production and exports.
In addition to these measures, the government has also focused on expanding hydro power generation capacity, implementing measures to promote hydro power, declaring large hydro power projects as a renewable energy source, introducing Hydro Purchase Obligation (HPO), and tariff rationalization.
The recent notification of guidelines for Pumped Storage Projects (PSPs) and the reduction of timelines for the concurrence of Detailed Project Reports (DPRs) highlight the government’s commitment to fostering the development of hydro power in the country.
