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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
  • 6th largest installed capacity of solar power in the world
  • World's largest 648 MW solar power plant in Tamil Nadu, commissioned within a record 8 months

Industry Scenario

Renewable energy sources have a combined installed capacity of 69 GW pegged at around 20% of the country's total energy capacity.

Wind power accounted for the highest at 49.3% (around 34 GW). This is followed by solar with a share of 31.4% (21.7 GW). Remaining market was captured by Biomass at 12.8% (8.8 GW) and small hydro projects catering to 6.5% (4.5 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.

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.

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 Wind-Solar Hybrid Policy

The main objective of the Policy is to provide a framework for promotion of large grid connected wind-solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability.

Policy also aims to encourage new technologies, methods and wayouts involving combined operation of wind and solar PV plants.

This policy will remain in force unless withdrawn, modified or superseded by the Government. The Government will undertake a review of this Policy as and when required.

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.

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 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 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.

FDI Facts

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

  • May 2018 - Kerala and NTPC sign MoU for increasing solar power generation

  • Feb 2018 - World's largest solar park launched in Karnataka. The world's largest solar park set up at an investment of USD 2.53 bn at Pavagada in Karnataka's Tumakuru district was launched by Chief Minister Siddaramaiah today.

  • Feb 2018 - The joint venture of Think Energy and EverStream Capital plans to invest USD 300 mn in equity capital to either acquire or develop 2,000 MW solar projects in India.

  • Feb 2018 - ReNew Power inks pact with UP govt. to invest USD 1.2 bn for 1.2 GW of renewable energy capacity, a move which can create 12,000 jobs in the state. ReNew has also entered into a MoU with Maharashtra govt. to invest a total of USD 2.2 bn on solar, wind and waste-to-energy projects.

  • Feb 2018 - India’s Avaada Power has signed a Memorandum of Understanding with the Government of Uttar Pradesh to invest  USD 1.55 bn in the state for developing 1,600 MW Solar Projects. The projects will be developed across Mirzapur, Badun, Gorakhpur and Bundelkhand districts.

  • Feb 2018 - India’s largest public sector lender State Bank of India has invested an undisclosed amount from its Neev Fund in Indian solar player SunSource Energy, for developing solar project assets in states with low levels of capital investment.

  • Feb 2018 - Ramky Enviro Engineers Ltd, party of city-based Ramky Group and Asia’s biggest waste management, is setting up 20 MW waste-to-energy plant in Hyderabad, with an investment of USD 46.3 mn.

  • Feb 2018 - LONGi Green Energy Technology Co. Ltd will be the first Chinese company to set up a solar equipment manufacturing facility in India. LONGi’s facility will be set up in Andhra Pradesh at an investment of around Chinese renminbi USD 309 mn for manufacturing 1GW of monocrystalline silicon cell and modules each. Solar modules account for nearly 60% of a solar power project’s cost.

  • Feb 2018 - During the recent Uttar Pradesh Investors summit, amplus solar signed a Memorandum of Understanding with the state government for the investment of USD 340.1 mn over the next 5 years.

Major Investors