India is set to enforce new norms for distribution licensees regarding the consumption of renewable energy, starting from April 1, 2024, R K Singh said in a written reply to a question in Lok Sabha on February 8, 2024. This move comes as of the latest data, India has more than 180 GW (Gigawatts) of installed renewable energy capacity.
These norms are set to ensure that a certain percentage of electricity consumption by distribution licensees comes from renewable energy sources.
Under Section 86 (1) (e) of the Act, State Electricity Regulatory Commissions (SERCs) are mandated to specify a percentage of electricity consumption to be sourced from renewable energy. In line with this, all SERCs have defined Renewable Purchase Obligation (RPO) for electricity distribution utilities (DISCOMs), with the Ministry of Power issuing guidelines on RPO trajectory periodically.
Additionally, the Ministry of Power, under Section 14 (x) of the Energy Conservation Act, 2001, as amended by the Energy Conservation (Amendment) Act, 2022, has delegated powers to the Central Government to specify the minimum share of consumption of non-fossil resources by designated consumers, including distribution licensees.
The ministry’s notification, dated October 20, 2023, outlines the minimum share of renewable energy consumption by electricity distribution licensees as a percentage of total energy consumption, with specified targets for various types of renewable energy sources.
Provisions have been put in place to encourage the installation of renewable energy plants, including permitting 100 percent Foreign Direct Investment (FDI) under the automatic route and waiving Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power until June 30, 2025.
Furthermore, measures such as accelerated depreciation and exemptions from Environment Impact Assessment (EIA) for solar and wind power projects aim to incentivize investments in renewable energy infrastructure.
The state-wise details of installed renewable energy capacity as of December 31, 2023, highlight the significant strides made by various states and union territories in harnessing renewable energy sources.
The data demonstrates a consistent pattern of increasing the minimum share of renewable energy consumption over time. Starting from 29.91% in the fiscal year 2024-25, the minimum share rises incrementally to 43.33% by the fiscal year 2029-30. This gradual increase indicates a phased approach towards transitioning to a higher reliance on renewable energy sources.
The six-year timeframe outlined in the data reflects a long-term planning horizon in the government’s renewable energy policies. By providing clarity on consumption targets well in advance, policymakers create a stable regulatory environment conducive to investment and development in the renewable energy sector. This stability is crucial for attracting investment, fostering innovation, and driving the growth of renewable energy infrastructure.
The power generation data for the current fiscal year underscores the substantial contribution of renewable energy to India’s overall energy generation.
The data stated significant variations in renewable energy capacity across states and union territories. States like Gujarat, Rajasthan, Maharashtra, Karnataka, and Tamil Nadu emerge as leaders in installed capacity, with substantial contributions from wind, solar, and hydro power projects. This trend suggests that certain regions have shown greater commitment and progress in renewable energy deployment, likely driven by factors such as resource availability, policy support, and investment climate.
While solar power dominates in states like Rajasthan, Gujarat, and Karnataka, wind power contributes significantly in states like Tamil Nadu, Maharashtra, and Gujarat. Additionally, states like Himachal Pradesh and Uttarakhand leverage large hydro power projects due to their topographical advantages.
Despite progress in renewable energy deployment, disparities persist among states in terms of installed capacity. Some states with high renewable energy potential, such as Uttar Pradesh and Bihar, lag behind in capacity installation. Addressing these regional disparities requires targeted interventions, including policy incentives, investment promotion, and capacity-building initiatives tailored to the specific needs and challenges of each region.
The data also highlights the substantial power generation from renewable sources during the current year (2023-24) up to December 2023. States like Rajasthan, Gujarat, Karnataka, Maharashtra, and Tamil Nadu lead in renewable energy generation, contributing significantly to India’s overall renewable energy output. This increase in renewable energy generation reflects the growing momentum towards achieving national targets for renewable energy capacity addition and reducing carbon emissions.
