Share of Clean Renewable Energy On A Rise in India’s Basket of Power Projects

Share of Clean Renewable Energy On A Rise in India’s Basket of Power Projects

With due focus on solar and wind projects, the percentage of Renewable Energy in India’s Total Power Generation has also seen a consistent increase from 4.97% in 2012-13 to about 5.7%, as on February, 2016, India’s Minister of State (IC) for Power, Coal & New and Renewable Energy Piyush Goyal told the Rajya Sabha on May 2.

India’s Total Power Generation up from 4.97% in 2012-13 to 5.7%, as on Feb, 2016: Piyush Goyal Click To Tweet

Goyal further stated that the Government has recently approved amendments in Tariff Policy in January, 2016 which envisages long term trajectory of RPO prescribing purchase of solar energy to promote the renewable energy, from the date of notification of the policy, which shall be such that it reaches up to 8% of the total electricity consumption or as notified excluding Hydro power by March 2022.


The Government is implementing ‘Green Energy Corridor Project’ for strengthening intra-state and inter-state transmission system along with other control infrastructure for the likely renewable power capacity addition to facilitate integration of large scale renewable energy generation, in the renewable rich states of Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Jammu & Kashmir and Madhya Pradesh.

Green Energy Corridor Project To Strengthen Intra State & Inter State Transmission System. Click To TweetThe funding pattern for creating intra-state transmission infrastructure is approved as share of KfW loan (40% of the cost) and grants from National Clean Energy Fund (40% of the cost) and the remaining 20% as state contribution.

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The Inter- State Transmission Projects are proposed to be funded with 70% KfW loan and 30% equity by Power Grid Corporation of India Limited (PGCIL). The setting up of Renewable Energy Management Systems (REMCs) has to be funded from budgetary sources, the Minister added.

Govt’s Boost For Solar Power Plants on Waste Land 

Government is encouraging use of waste land for installation of solar power plants and setting up of solar parks is a step in that direction, Goyal said. Under the scheme, 32 solar parks of 19,400 MW capacity have been sanctioned in 20 states so far.

The Minister further stated that a solar capacity of 20,000 MW has been targeted under the existing solar park scheme, which includes use of waste land also. The the total target for gird connected solar power plants is 60,000 MW by 2022.

“Government is monitoring the scheme in close coordination with States and other stakeholders so as to complete the projects in time for which various fiscal and promotional incentives e.g. capital subsidy, generation based incentive, accelerated depreciation, viability gap funding (VGF), concessional excise and custom duties etc. are provided to project developers,” the Minister added.

Solar Panels

Harnessing of Solar and Wind Energy in Rural Areas 

The Ministry of New & Renewable Energy (MNRE) is implementing a Programme on “Off-Grid and Decentralized Solar Applications” for promoting use of solar power through solar home lights, solar street lights, power plants, solar pumps and mini micro grids to meet the energy requirements of the rural areas of the country.

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Central financial assistance equivalent to 30% of the system cost is provided under the scheme to encourage the people in the remote/ rural areas adopt these systems to meet their energy requirements. “Small Wind Energy and Hybrid system (SWES)” scheme MNRE to utilize solar & wind energy. Click To TweetThe MNRE is also implementing a scheme “Small Wind Energy and Hybrid system (SWES)” wherein both the solar and wind energy is effectively utilized for power generation in the remote areas by installing hybrid system consisting of both Solar Photovoltaic and aero generator / small wind turbine technologies. Central Financial assistance of Rs one lakh/KW is provided for community users.

The Minister further stated that the MNRE provides financial supports for promoting biogas based power units (off-grid) specifically in small capacity range of 3KW –250KW in dairies , goshalas, Farms etc. based on availability of animal wastes and wastes from forestry etc.

Alongside, the MNRE is also implementing National Biogas and Manure Management Programme in rural areas of the country, wherein family type biogas plants are installed to meet cooking and motive power requirements.

Under this programme subsidy is provided based on the size of the plant and its location either in special category states or in other states, the Minister added.