Discuss major renewable technologies adopted by India ? what are the major initiatives for incentivizing local development and manufacturing of renewable energy technologies?

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 The primary objective for deploying renewable energy in India is to advance economic development, improve energy security, improve access to energy, and mitigate climate change. 

Sustainable development is possible by use of sustainable energy and by ensuring access to affordable, reliable, sustainable, and modern energy for citizens. Strong government support and the increasingly opportune economic situation have pushed India to be one of the top leaders in the world’s most attractive renewable energy market


The sources of electricity production such as coal, oil, and natural gas have contributed to one-third of global greenhouse gas emissions. It is essential to raise the standard of living by providing cleaner and more reliable electricity .

 India has an increasing energy demand to fulfill the economic development plans that are being implemented. The provision of increasing quanta of energy is a vital pre-requisite for the economic growth of a country . The National Electricity Plan [NEP] framed by the Ministry of Power (MoP) has developed a 10-year detailed action plan with the objective to provide electricity across the country, and has prepared a further plan to ensure that power is supplied to the citizens efficiently and at a reasonable cost.

 According to the World Resource Institute Report 2017 . India is responsible for nearly 6.65% of total global carbon emissions, ranked fourth next to China (26.83%), the USA (14.36%), and the EU (9.66%). Climate change also change the ecological balance in the world. Intended Nationally Determined Contributions (INDCs) have been submitted to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The latter has hoped to achieve the goal of limiting the rise in global temperature to well below 2 °C 

According to a World Energy Council  prediction, global electricity demand will peak in 2030. India is one of the largest coal consumers in the world and imports costly fossil fuel . Close to 74% of the energy demand is supplied by coal and oil. According to a report from the Center for monitoring Indian economy, the country imported 171 million tons of coal in 2013–2014, 215 million tons in 2014–2015, 207 million tons in 2015–2016, 195 million tons in 2016–2017, and 213 million tons in 2017–2018 .

India is aiming to attain 175 GW of renewable energy which would consist of 100 GW from solar energy, 10 GW from bio-power, 60 GW from wind power, and 5 GW from small hydropower plants by the year 2022 [11]. Investors have promised to achieve more than 270 GW, which is significantly above the ambitious targets. The promises are as follows: 58 GW by foreign companies, 191 GW by private companies, 18 GW by private sectors, and 5 GW by the Indian Railways [12]. Recent estimates show that in 2047, solar potential will be more than 750 GW and wind potential will be 410 GW [13, 14]. To reach the ambitious targets of generating 175 GW of renewable energy by 2022, it is essential that the government creates 330,000 new jobs and livelihood opportunities


 The Government has taken several steps to promote renewable energy, including wind energy, in the country. These include:

    • permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
    • waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
    • declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
    • setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
    • laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power,
    • setting up of Project Development Cell for attracting and facilitating investments,
    • Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
    • Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
    • Conducting skill development programmes to create a pool of skilled manpower for implementation, operation and maintenance of RE projects.



The Government has taken a number of initiatives for incentivizing local development and manufacturing of renewable energy technologies, namely:

  1. Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was open to receive applications till 31st December, 2018. The Scheme inter-alia covers solar PV cells, solar PV modules, EVA, backsheet and solar glass.
  2. Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector: Through implementation of ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters has been mandated for Govt/ Govt. entities.
  3. Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM and Grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.
  4. Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has announced imposition of Basic Customs Duty (BCD) on import of solar PV cells and modules with effect from 01.04.2022.
  5. Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: MNRE has issued the Scheme Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crores for supporting manufacturing of high efficiency solar PV modules by providing Production Linked Incentive (PLI) on sales of such solar PV modules. Letters of Award have been issued to the eligible successful bidders to the extent of funds allocated (i.e. the present scheme outlay of Rs. 4,500 crore). An additional outlay of Rs 19,500 crore has been announced in the Budget 2022- 23 on 1st February 2022.
  6. Incentives to domestic manufacturing in Wind sector: Government has put in place a system of Revised List of Models and Manufacturers, and only equipment manufactured by manufacturers in the list is allowed to be used for Wind Energy Projects. It also mandates that Hub and Nacelle assembly / manufacturing facility shall be in India. More than 70 percent of the equipment is manufactured in India.
  7. ‘Renewable Energy Research and Technology Development Programme’ of Ministry of New & Renewable Energy (MNRE): The Ministry of New & Renewable Energy (MNRE) supports a scheme “Renewable Energy Research and Technology Development Programme” through various research institutions and industry to enable indigenous technology development and manufacture of new and renewable energy in the country. MNRE encourages research and technology development proposals in collaboration with the industry and provides upto 100% financial support to Government/non-profit research organizations and upto 50-70% to Industry, Start-ups, Private Institutes, Entrepreneurs and Manufacturing units. An amount of Rs. 62.47 crore has been spent in the last three years for this scheme.

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