The dream of a ‘New India’ includes a lion's share of clean energy. The government has a renewable energy generation target of 175 GW by the end of 2022. The target includes 5 GW from small hydropower, 10 GW from bio-power, 60 GW from wind and 100 GW from solar power. The government has already succeeded in achieving 80 GW of renewable energy. 24 GW of renewable power is currently being installed. Bids are at varying stages to produce another 42 GW. So, a total of 146 GW is already underway.
This excellent growth rate has inspired another declaration. India would achieve 40 per cent of its electric power generation through renewable energy resources. International transfer of technology and finance at low rates would provide succour.
India’s cumulative renewable energy capacity has risen around 106% in the last four years. The rise has been dramatic, from 35.51 GW in 2014, to 73.35 GW as of October 31, 2018.
The government has offered the following incentives to promote the adoption of renewable energy.
The National Solar Mission is promoting the use of solar energy for power generation. The focus is on aggressive research and development and long-term policies. Essential raw materials are being produced within the country. This has made solar power cost-competitive.
Some other programs implemented to meet the 175 GW target are:
A total of 27 banks have committed to financing renewable energy projects.
Other important milestones include:
Renewable Purchase Obligation- Large power plants and power distribution companies obligated to purchase a certain percentage of energy from renewable resources.
Renewable Generation Obligation- The government has made it mandatory for thermal power plants to produce a fixed percent of power from renewable energy resources.
Various research reports have suggested that the 175 GW target is ambitious. Solar installations have fallen by 49% in January-March 2019 itself. This has been attributed to delays in approvals, payment issues, tariff caps, etc.