Agenda
Challenges
Much of India’s coal needs from now to 2030 will have to be met by imports. And also before 2025, India overtakes Japan to become the world’s third ¬largest net importer of oil, after the United States and China.
Furthermore, there are some 412 million people without access to electricity in India. Ongoing electrification and improving living standards spur India’s energy use. Therefore, its electricity demand grows 8% annually. Among end¬use sectors, transport energy demand sees the fastest rate of growth as the vehicle stock expands rapidly with rising economic activity and household incomes.
Political
Economic growth is the most important factor in India’s growing energy needs. The Indian economy is expected to grow at 7.2% in 2009-10. Therefore, primary energy demand in India is expected to more than double by 2030. Power ¬generation capacity more than triples between now and 2030. Coal, thereby, remains India’s most important fuel, and sees its use nearly tripling between 2005 and 2030.
Status
Composition
Large scale hydropower plants provide 24.7 % of the total electricity with an installed capacity of 36,863 MW. Other renewables contribute around 10 % to the total power generation in the country producing 15,789 MW.
Growth
The market in India for the renewable energy business is growing at an annual rate of 15%. The scope for private investment in renewable energy is estimated to about $3 billion. This growth is expected to continue in the coming years as stricter environmental norms and regulatory pressure are placed on Indian industries.
Targets
The Government of India has outlined ambitious capacity expansion and investment plans for the eleventh five year plan period (FY 2007- FY 2012). It has proposed an addition of 15,000 MW of Renewable Energy generation capacities during the period. Wind Power projects form 70 % (10,500 MW) of the proposed capacity addition, while Small Hydro Projects (SHP) account for 9.3 % (1,400 MW).
The total investment in renewable energy during the plan period is expected to be about USD 2 billion. Furthermore, the National Solar Mission launched in 2008 aims at developing 20,000 MW of solar energy by 2022.
Institutional Structure
The Ministry of New and Renewable Energy
India has a ministry that is completely devoted to the development of New and Renewable Energy. In 1992 the Ministry of Non-Conventional Energy Sources (MNES) was founded, which was renamed in 2006 to Ministry of New and Renewable Energy (MNRE). The broad aim of the Ministry is to develop and deploy new and renewable energy for supplementing the energy requirements of the country.
Indian Renewable Energy Development Agency (IREDA)
IREDA is a Public Limited Government Company established in 1987, under the administrative control of the Ministry of New and Renewable Energy (MNRE) to promote, develop and extend financial assistance for renewable energy and energy efficiency/conservation projects with the motto: "Energy Forever".
Budget
Current
The ministry of New and Renewable Energy has seen a 20% increase in budget allocation compared to last year summing up to US$269.5 million compared to US$224 million last year. Spending includes generation-based incentives of INR 0.5/kWh for Independent Power Producers with a capacity >5 MW and up to INR 12/kWh for smaller plants. Furthermore, several subsidies are in place for solar power systems, such as solar lanterns, home lighting systems.
History
Energy ‘self-sufficiency’ was identified as the major driver for new and renewable energy in the country in the wake of the two oil shocks of the 1970s. The sudden increase in the price of oil, uncertainties associated with its supply and the adverse impact on the balance of payments position led to the establishment of the Commission for Additional Sources of Energy in the Department of Science & Technology in March 1981.
The Commission was charged with the responsibility of formulating policies and their implementation, programmes for development of new and renewable energy apart from coordinating and intensifying R&D in the sector. In 1982, a new department, i.e., Department of Non-conventional Energy Sources (DNES), that incorporated CASE, was created in the then Ministry of Energy. In 1992, DNES became the Ministry of Non-conventional Energy Sources. In October 2006, the Ministry was re-christened as the Ministry of New and Renewable Energy.
Key Policies
Recent Legislation
Two policies are critical for India’s renewable energy sector. Firstly, the Integrated Energy Policy launched in 2006, recommended to look into the deployment of renewables in the Indian energy sector. The key recommendations and achievements regarding renewable energy were:
a. Incentives for renewable energy should be linked to outcomes (energy generated) and not outlays (installed capacity).
b. IREDA (Indian Renewable Energy Development Agency) was given the role of national refinancing institution for the renewable energy sector.
c. Boosting energy related R&D.
It was from these recommendations that the National Solar Mission was born in 2008. It aims to create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022, by:
a. Ramping up the capacity of grid-connected solar power generation to 1000 MW within three years by 2013 and 3000MW by 2017 through the mandatory use of renewable purchase obligations by utilities, backed with a preferential tariff.
b. Creating favourable conditions for the manufacturing of solar technology.
c. Promoting programs for off-grid applications.
d. Installing 15 million m2 solar thermal collector area by 2017.
e. Deploying 20 million solar lighting systems for rural areas by 2022.
Miscellaneous
Further Information
The country has an estimated renewable energy potential of around 85,000 MW from commercially exploitable sources: Wind, 45,000 MW; small hydro, 15,000 MW and biomass/bioenergy, 25,000 MW. In addition, India has the potential to generate 35 MW/km2 using solar photovoltaic and solar thermal energy. In 2050; about 69% of the electricity produced in India could come from renewable energy sources.
‘New’ renewables – mainly wind, solar thermal energy and PV – will contribute almost 40%. The installed capacity of renewable energy technologies will grow from the current 38 GW to 1,659 GW in 2050. Up to 2030, wind will remain the main new power source. After 2020, the continuing growth of wind will be complemented by electricity from biomass, photovoltaics and solar thermal (CSP) energy.
Transition to Globalization
Global Trends in Sustainable Energy Investment
2008 was the first year that new power generation investment in renewables was greater than investment in fossil-fueled technologies … In China sustainable energy investment grew 18% to $15.6 billion – driven by some timely policy interventions - and in India by 12% to $3.7 billion.
Globalisation > Economy > Energy > Sources > Renewable
Transition to Political Tools
India Seeks German Cooperation on Renewable Energy
Union Minister of New and Renewable Energy Farooq Abdullah has appreciated the efforts of Germany in the field of Renewable Energy and has stressed on the need for greater cooperation between the two countries in this direction.
Political Tools > National > India > Dom. Policies > Economy > Energy > Renewable
Transition to Political Actors
India Energy [R]evolution Scenario
In 2050 about 69% of the electricity produced in India could come from renewable energy sources. ‘New’ renewables – mainly wind, solar thermal energy and PV – will contribute almost 40%. The installed capacity of renewable energy technologies will grow from the current 38 GW to 1,659 GW in 2050. Up to 2030, wind will remain the main new power source. After 2020, the continuing growth of wind will be complemented by electricity from biomass, photovoltaics and solar thermal (CSP) energy.
Political Actors > Civil society > NGOs > Energy
