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Creating a sustainable world

India is ranked as the second most attractive renewable energy market in the world.

India has setup an ambitious target of 175 GW of renewable power by 2022 to include: 

  •  100 GW of Solar power
  •  60 GW from wind power
  •  10 GW from biomass power
  •  5 GW from small hydro power

This is the world's largest expansion plan in renewable energy.

In 2016-17, India added a record 11 GW of combined wind and solar capacity.


Up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003


  • 4th largest installed capacity of wind power in the world
  • 3rd largest installed capacity of concentrated solar power (CSP) in the world
  • World's largest 648 MW solar power plant in Tamil Nadu, commissed within a record 8 months

Industry Scenario

Renewable energy sources have a combined installed capacity of 60.1 GW pegged at around 18.2% of the country's total energy capacity. 

Wind power accounted for the highest at 54.4% (around 32.7 GW). This is followed by solar with a share of 24.6% (14.7 GW). Remaining market was captured by Biomass at 13.8% (8.3 GW) and small hydro projects catering to 7.3% (4.4 GW). 

Growth Drivers

  • Renewable energy share in total installed capacity


  • Increase in solar power capacity addition (2014-16)


  • Wind energy share in renewable installed capacity


  • % reduction in solar power tariff using plug & play model


Key policies

Generation based Incentives

SWHS Capital Subsidy, MNRE Scheme for Implementation of Generation Based Incentives (GBI) for Grid Interactive Wind Power Projects, solar generation based incentives, IREDA-NCEF Refinance Scheme etc.

Schemes for Wind Power Projects

Scheme for setting up of 1000 MW ISTS-connected wind power projects, guidelines for development of onshore wind power projects, scheme for setting up of 1000 MW CTU-connected wind power projects etc.

Schemes for Solar Power Plants

Guidelines for Implementation of scheme for setting up of 2000 MW Grid-Connected Solar PV Power Projects with Viability Gap Funding (VGF) under Batch-III of Phase-II of the JNNSM, Scaling up of Grid Connected Solar Power Projects from 20,000 MW by the year 2021-22 to 1,00,000 MW by the year 2021-22 under National Solar Mission., Guidelines for Selection of 3000 MW Grid – Connected Solar PV Power Projects under Batch-II Tranche-I “State Specific Bundling Scheme, Scheme for setting up of 15,000 MW of Grid-connected Solar PV Power plant through NTPC Ltd./ NVVN under National Solar Mission, Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects in the country commencing from 2014-15 and onwards (i.e. from the year 2014 – 15 to 2018 – 19), Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops

Schemes for Small Hydro Power Projects

Small Hydro Power Programme (upto 25 MW Capacity) – Administrative Approval for the year 2009-10 & remaining period of 11th Plan–Clarification-Reg., Small Hydro Power Programme (upto 25 MW Capacity) - for the year 2014-15 & remaining period of 12th Plan

Schemes for Biomass Power Projects

The objectives of the scheme to support promotion of grid interactive biomass power and bagasse cogeneration in sugar mills of the Ministry are given below:-
(a) To promote setting up of biomass power projects with minimum steam pressure configuration of 60 bar and above for power generation (grid interfaced on commercial basis).
(b) To promote cogeneration projects for surplus power generation from bagasse in private/cooperative/public sector sugar mills with minimum steam pressure configuration of 40 bar and above (Grid interfaced on commercial basis).
(c) To promote bagasse cogeneration projects for surplus power generation in cooperative/public sector sugar mills with minimum stream pressure of 60 bar and above, taken up through BOOT/BOLT model by IPPs/State Govt. Undertakings or State Government Joint Venture Company (Grid interfaced on commercial basis).

Schemes for Biomass Gasification Projects

Biomass Gasifier Programme - Revised guidelines for the implementation during 2010-11 and remaining period of the 11th Plan, Programme on "Biomass Gasifier for industries" amendment regarding

Schemes for Biogas Power Projects

Biogas based Power Generation Programme (BPGP)
Biogas based power units can be a reliable decentralized power generation option in the
country. In order to promote this route of power generation, specifically in the small
capacity range (3 kW to 250 kW), based on the availability of large quantity of animal
wastes and wastes from forestry, rural based industries (agro/food processing), kitchen
wastes, etc; a number of projects of different capacities and applications will be taken
up for refining the technical know-how, developing manpower and necessary
infrastructure, establishing a proper arrangement of operation & maintenance and large
scale dissemination.

National Policy on Biofuels

The Policy aims at mainstreaming of biofuels and, therefore, envisions a central role for it in the energy and transportation sectors of the country in coming decades. The Policy will bring about accelerated development and promotion of the cultivation, production and use of biofuels to increasingly substitute petrol and diesel for transport and be used in stationary and other applications, while contributing to energy security, climate change mitigation, apart from creating new employment opportunities and leading to environmentally sustainable development. The Goal of the Policy is to ensure that a minimum level of biofuels become readily available in the market to meet the demand at any given time.

National Offshore Wind Energy Policy

This policy document is the primary policy decision-making document for offshore wind energy development, including, setting up of offshore wind power projects and research & development activities, in waters, in or adjacent to the country up to the seaward distance of 200 nautical miles (EEZ of the country) from the base line. The Research & Development activities would also be carried out up to 200 nautical miles from the base line.

FDI Facts

  • FDI inflows (in USD) in the non-conventional energy sector during April 2000 - September 2017

  • FDI equity inflow (in USD) in the non-conventional energy sector during April 2014 to December 2016

  • FDI allowed under automatic route in projects of renewable power generation and distribution

Recent Investments

  • July 2017 - Tata Power will invest USD 90 mn in Tata Power Renewable Energy Limited. These funds will be used for setting up large-scale solar power projects with a total capacity of 320 MW. These projects, secured through competitive auctions, are spread across six states.

  • June 2017 - The Cabinet Committee on Economic Affairs, Government of India, has approved the issue of 139 mn fresh equity shares of Indian Renewable Energy Development Agency (IREDA) of USD 0.1 each through an Initial Public Offer.

  • May 2017 - The Asian Development Bank (ADB), and the Punjab National Bank (PNB) have signed a financing loan worth USD 100 mn, which will be used to support solar rooftop projects on commercial and industrial buildings across India.

  • January 2017 - Asian Development Bank (ADB), has invested USD 390 mn in ReNew Power for developing and expanding capacities across various states of India.

Major Investors