India has witnessed significant growth in renewable energy capacity addition in recent years. Some of the major policy interventions that have enabled this growth are:
National Solar Mission (2010): Launched with the aim to promote solar energy in India, the mission envisaged setting up ambitious targets for installation of grid-connected solar power projects. It aimed to create conditions for solar manufacturing capacity of 20,000 MW to be set up in India by 2022. This helped drive large-scale investments in solar energy.
Renewable Purchase Obligations (RPO) on Discoms (2010): Mandated utilities or discoms to purchase a certain percentage of total power from renewable sources each year. This created a guaranteed market for renewable power producers and promoted capacity addition. The RPO percentages have steadily increased over the years, presently standing at 21.5% by 2022.
Generation Based Incentive (2011): Introduced by Ministry of New and Renewable Energy (MNRE) to promote wind and small hydro power. Provided financial assistance based on energy generated to project developers, helping improve project viability.
Viability Gap Funding (2011): MNRE scheme to offer support to renewable projects facing viability gaps, which prevented bankable and commercially successful projects from being shelved. Covered capital cost of projects and bridged viability gap.
Preferential Tariffs (2012): For solar and wind projects, the regulator CERC mandated preferential and fixed tariffs to be offered by state electricity boards for 25 years. This provided long term visibility to projects, making investments secure and improving overall sector risk perception.
Renewable Energy Certificates (REC) Mechanism (2011): A market-based instrument to promote renewable energy and facilitate RPO compliance. RECs are issued to eligible renewable energy producers from the grid-connected projects and an Electronic REC Registry certifies and tracks the RECs. This ensured a fixed market price for renewable producers.
Solar Park Scheme (2014): Encouraged development of large integrated solar manufacturing units by addressing common infrastructure challenges. Supported development of plug-and-play solar parks with necessary evacuation infrastructure. Many mega solar parks established under this helped achieve scale.
Sustainable Rinewable Energy Development Agency of Nagaland (SREDAN) (2015): Set up agency for renewable development in Nagaland. Since Nagaland has hydropower potential and natural resources, SREDAN addresses local barriers to implement off-grid projects and village electrification schemes.
Green Energy Corridor Project (2015): Established by Power Grid Corporation of India to facilitate grid integration of large renewable energy zones. Involved laying interstate transmission systems of over 7,500 circuit km to strengthen grid and support renewable capacity addition in various states.
Wind-Solar Hybrid Policy (2016): Promoted effectiveness and efficient use of renewable resources by allowing setting up of optimal hybrid projects utilizing technology synergy. Helped optimize total renewable penetration.
Renewable Purchase Obligations (RPO) Trajectory (2016): Ramped up RPO levels to facilitate acceleration of renewable capacity addition. Long term visibility and emphasis on meeting mounting RPO targets promoted continuous investments.
Floating Solar Policy (2018): Enabled development of solar projects on water bodies like reservoirs, lakes etc. Helped utilize untapped aquatic spaces. Many state policies also supported rooftop and canal-top solar deployment to boost distributed renewable capacity addition across India in the recent years.
Green Energy Corridor Phase II (2018): Approved for Rs. 10,000 crores to further establish inter-state transmission systems and strengthen grid integration of large renewable energy projects under development.
This concerted approach spanning policy design, market reforms, regulatory interventions and innovative fiscal or financial schemes helped India emerge as a global leader in developing renewable energy resources. It demonstrates how coherent strategies and long term commitments can drive sustainable development goals. India continues progressing on this mission to power its energy needs from clean sources.