2020 2nd International Conference on Power, Energy, Control and Transmission Systems

Development of Renewable Energy in India and

Challenges Faced

Pratiyuksha V N Sundararaman K Ranjitha K

Electrical and Electronics Engg dept Electrical and Electronics Engg dept. Electrical and Electronics Engg dept.
Rajalakshmi Institute of Technology Rajalakshmi Institute of Technology Rajalakshmi Institute of Technology
2020 International Conference on Power, Energy, Control and Transmission Systems (ICPECTS) | 978-1-7281-1084-4/20/$31.00 ©2020 IEEE | DOI: 10.1109/ICPECTS49113.2020.9337060

Chennai, India Chennai, India Chennai, India

[email protected]

Abstract​—​Concerns over fossil fuel depletion and their Considering all forms of renewable energy like Solar,
adverse effect on the environment have driven the countries of Wind, Biomass etc, the country ranks fifth in the world in
the world to pursue renewal energy sources in a big way. installed capacity. The renewable energy installed capacity
Energy security and maintaining a healthy environment by has seen a whopping 226% increase over the previous five
reducing carbon emissions are the twin objectives which drive years. The total renewable energy target is now set as
development of renewable energy sources. While issues like
175GW to be achieved before December 2022 and 450GW
intermittency are inevitable with energy sources like solar and
wind, realising a proper mix of traditional and to be achieved before 2030. It is also envisaged that the
non-conventional energy sources coupled with a storage option share of renewable energy sources in the total basket of
can help to mitigate some of these issues. India is a major electrical energy consumption shall exceed 40%. Till end
producer and consumer of renewable energy. This paper December the actual achievement has been over 85.9GW
reviews the status of renewable energy development in this which is just about half of the target and which is about 23%
country and identifies some of the initiatives and policy of the installed capacity. The installed power generation
measures that have helped to make this happen. Some of the capacity in the various streams is shown in Figure 1. The
challenges faced and bottlenecks in the development of sector-wise breakup of installed capacity in renewable
renewable energy and their possible solutions are highlighted​.
energy is shown in Figure 2.

Keywords—Renewable energy, Non-conventional, Solar,

Wind, Small hydel

I. I​NTRODUCTION
Energy consumption is widely agreed to be an index of the
standard of living of the people of a country and its
economic development. Per capita electrical energy
consumption in India has grown from a measly 16 units in
1947 to 1181 units in 2018-19. However to sustain this
development to cover all sections of the population, the
country has to have assured sources of energy and at the
same time satisfy carbon emission norms.
Global concerns on energy security and environmental
pollution are driving the countries of the world to adopt
renewable energy systems in a big way. Sustainable growth Figure 1: India - Source Wise Installed Power Generation
with minimal harm to the environment is practicable only Capacity (MW) as of 2019
through a large-scale transition from fossil fuels which are
available in finite quantities to renewable energy sources The policies and strategies formulated by the
which are available almost indefinitely. India can be proud government play a key role in the widespread use of
of the fact that it is a major player among all developing renewable energy sources. The support that is given by the
countries in the production and consumption of energy government through its various institutions, technically and
through renewable sources. The country has made rapid financially, aids in the development of these technologies.
strides in the development of renewable energy and now This paper gives a complete overview of the status of
ranks fourth in the world in installed capacity in wind renewable energy generation in India and how it has been
energy and fifth in solar energy. influenced by the various governmental measures. The data
has been sourced from the websites [1] to [5] and the
approaches from [6] to [22].

978-1-7281-1084-4/20/$31.00 ©2020 IEEE

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 The Government of India set up a separate Department National Mission on Sustainable Habitat (NMSH): This
of Non-Conventional Energy Sources in 1982 which was mission promotes energy efficiency in urban planning
subsequently scaled up to a separate Ministry in 1992 and through Energy Conservation Building Codes, management
was re-named in 2006 as Ministry of New and Renewable of urban wastes, enforcing fuel economy in automotives,
Energy (MNRE), to serve as a nodal agency for the and pushing people towards public transportation.
development of renewable energy sources. The Ministry is
National Water Mission (NWM):A wing of the Water
supported by many autonomous institutions like National
Resources Ministry, the mission aims to improve efficiency
Institute of Solar Energy (NISE), National Institute of Wind
of water consumption. With the likelihood of future water
Energy (NIWE), Sardar Swaran Singh National Institute of
scarcity not in the least due to environmental issues, action
Bio-Energy (SSS-NIBE), Solar Energy Corporation of India
plans have been prepared and are under implementation at
(SECI) and Indian Renewable Development Agency Ltd
the state and central level. Flood mitigation also forms part
(IREDA).
of this mission.
In 2008, the government came out with a ‘National
National Mission for Sustaining the Himalayan
Action Plan on Climate Change (NAPCC)’ and constituted
the following eight national missions under the plan to give Ecosystem (NMSHE): Himalayas being the crowning jewel
an impetus to renewable energy sources, improve energy at the top of the country providing a natural physical barrier,
efficiency and promote sustainable development: Solar source for all our perennial rivers which provide water for
mission, Mission for enhanced energy efficiency, Mission drinking, irrigation and hydro-power has to be protected
on sustainable habitat, Water mission, Mission for against global warming and environmental degradation.
sustaining the Himalayan ecosystem, Mission for a green With this objective, this mission was launched in 2010 to act
India, Mission for sustainable agriculture, and Mission on as a nodal agency among various central / state institutions
strategic knowledge for climate change. to protect the glaciers and their forest cover.
National Mission for a Green India (NMGI):This
mission aims to expand the forest cover in the country
thereby improving the carbon ecosystem and sustaining raw
materials for biomass energy sources. The Ministry of
Environment and Forests is the nodal agency.
National Mission for Sustainable Agriculture (NMSA):
This mission aims to develop crops which can stand adverse
climates and to further improve agriculture, horticulture and
pisciculture by adopting suitable practices. The Ministry of
Agriculture is the nodal agency.
National Mission on Strategic Knowledge for Climate
Change (NMSKCC): This mission aims to improve our
understanding of climate and environment and to create a
research funding mechanism for climate science. The
Ministry of Science and Technology is the nodal agency.
Under the principle ‘polluter pays’ the Government has
established a National Clean Energy fund to promote
renewable energy by imposing a cess on coal consumption.
II. S​OLAR​ E​NERGY
The country is blessed with abundant solar energy to the
tune of 5 trillion MWh every year, being in the tropical
Figure 2: Sector-wise breakup of installed capacity in
renewable energy in MW (till Dec 2019)
region and having sunlight for more than 250 days in a year.
The electrical power generation potential for solar energy in
National Solar Mission: Launched in 2010 and India for an assumed 3% available waste land and the
christened as Jawaharlal Nehru National Solar Mission prevailing solar radiation is estimated by the National
(JNNSM), National Solar Mission addresses energy security Institute of Solar Energy to be 750GWp. Under the NAPCC,
with ecological and sustainable growth using solar energy in 2010, the Solar Mission was made operational to
through suitable policies. accelerate the production and use of solar energy all over
the country. A modest target of 20GW was planned initially
National Mission for Enhanced Energy Efficiency but this target has now been enhanced to 100GW by the end
(NMEEE): A wing of the Power ministry of Government of of December 2022. The solar installed capacity as of end
India, Bureau of energy efficiency (BEE) is the nodal December is 33.73GW. Tenders are underway where letters
agency for this mission. It goads industries consuming a lot
of intent have already been issued or under issue to the tune
of energy towards improving energy efficiency and reducing
of 22.8GW and 28.6GW respectively.
consumption of energy. It creates mechanisms for financing
partnerships between public and private sectors, incentivises National Institute of Solar Energy (NISE) facilitates
manufacturing of energy efficient apparatus by reducing R&D, testing, certification and the development of skilled
taxes. manpower conversant with solar technologies. The solar

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renewable purchase obligation (RPO) envisages that by panel itself and with a view to attain self-sufficiency in this
2022, states and industries shall purchase at least 8% of their critical area, domestic manufacturing of solar cells and
requirements from solar energy. The purchase can be in the modules for a 12GW capacity is to be coordinated and
form of power itself or in terms of Renewable energy implemented by Solar Energy Corporation of India with an
certificates which can be traded in energy exchanges. The investment of Rs.48000 crores.
floor price of these certificates are fixed by the Central
In the realm of solar thermal systems also, many policies
Electricity Regulatory commission from time to time.
have been formulated and initiatives have been taken to
Some policy initiatives that were taken to boost solar boost solar thermal power. Together with a soft loan from
power generation are: (i) Adopting a reverse bidding International Renewable Development Agency (IREDA),
mechanism over benchmark tariffs set by Central Electricity subsidy is provided so that up to 75% of the project cost for
Regulatory Commission (CERC). (ii) Aggressive promotion executing concentrated solar thermal projects is taken care
of Solar water heaters and solar rooftop systems through of. Pressurised solar hot water system at Asian Pants,
suitable mandates in building by-laws and incorporating Khandala, Maharashtra, Concentrated Solar Thermal (CST)
them in the National Building Code. (iii) Offering subsidies based cooking project at Youth and Sports Hostel, Una and
for off-grid and rooftop solar applications. (iv) Funding of Bilaspur, Himachal Pradesh, Parabolic dish based CST
researching projects and establishing centres of excellence. system at Natco Pharma, Telangana, Dual-axis tracking
(v) Preparation of bidding guidelines for competitive Parabolic dish concentrator system at Namaste India Foods
procurement, (vi) Mandatory 10% renewable energy for Pvt. Ltd., Kanpur, U. P, Parabolic Dish with dual axis
smart city development, (vii) Solar projects to be given the tracking system at Vidya Dairy, Anand, Gujarat are some of
status of infrastructure making them eligible for special the recent projects that have been successfully executed.
long-term loans, (viii) Raising of solar bonds with no tax,
A huge 576 sq m parabolic dish is being installed at
(ix) Encouraging net-metering in power distribution, (x)
CMC hospital in Thane, Maharashtra with the financial
Grid-connected rooftop photovoltaic systems shall be
support of IREDA and United Nations Industrial
eligible for loans from banks under home improvement
Development organisation (UNIDO). A low weight
category etc.
compound parabolic concentrator is also planned to be
A new scheme known as (PM-KUSUM) has been installed. These measures have resulted in a substantial
announced to make farmers energy independent. The development of solar energy and a fall in tariff. During the
scheme aims to install 27.5 lakh solar pumps and auction for a 2245 MW solar power plant set up at Bhadla,
intermediate range solar plants in the range of 500-2000KW Rajasthan, an all-time record low tariff of Rs.2.44 per KWh
to a total extent of 10GW. was secured.
Traditional fossil based power plants are pushed towards III. W​IND​ E​NERGY
installation of renewable energy power plants through the
The total installed capacity for wind energy systems is
introduction of a Renewable Generation Obligation (RGO).
around 37.50 GW till end December 2019.The country
Thermal plants based on fossil fuels are required to
seeks to achieve a target of 60GW of wind power by 2022.
contribute their mite towards the environment by either
The present manufacturing capacity of wind turbines in the
setting up renewable energy plants or by purchasing
country is around 10,000 MW and the industry is almost
renewable energy certificates. The charges associated with
80% indigeneous with all the major international wind
transmission of renewable power between states have been
energy companies having a manufacturing presence here.
abolished to make the generation more attractive.
The industries are either fully owned subsidiaries of
Large infrastructural projects which are economically multinational companies or joint ventures. Indian companies
justified but not necessarily financially viable are provided with indigeneous technology are also active. Technology for
Viability gap funding (VGF) funding. A capital subsidy is manufacturing up to a 3MW single wind turbine is available
provided to private sector players to participate in locally.
public-private-partnership (PPP) projects. VGF has been
The wind potential of the country is more than 300 GW
made available for large utility solar projects to ensure
at a hub height of 100 metre and 695 GW at a height of
viability. A scheme to set up Solar Parks was released by
120m. The wind power potential at a hub height of 100m
which around 50 parks would generate 40GW of solar
and the corresponding installed capacity in the seven major
power by 2021-22. 39 solar parks have already been
windy states of the country is given in Table 1 below.
approved and are well under development.
It can be seen that Tamilnadu tops both in the installed
A bundling scheme which was kept flexible and
capacity and in the conversion of available potential. It may
state-specific, allowed a 2:1 bundling of solar projects with
also be noted that for an additional height of 20m in the
coal based projects to make the tariffs optimal. A 3000MW
height of towers above ground level, the available wind
target was fixed under this scheme which has now been
energy more than doubles.If and ever we exhaust our
achieved. A reverse bundling scheme has been suggested to
potential at 100m height, we may be constrained to go to
combine high cost thermal power with low cost renewable
higher altitudes with a higher initial investment.
power to reduce intermittency issues and for better
utilisation of transmission infrastructure. A power utility has Traditionally the Government has been offering a slew
to supply 51% of its energy through renewable sources. of incentives and favourable policy initiatives to promote
wind energy through the private sector. Some of them
The heart of a solar photo-voltaic system is the solar

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include, benefit of accelerated depreciation whereby out with a National Offshore Wind Energy Policy in 2015
investments made in renewable energy systems can be and designated National Institute of Wind Energy (NIWE),
considered for tax credit up to certain limits; exemption on Chennai as the nodal agency. The policy offers a slew of
customs duty on selected components of generators; incentives like Customs duty relaxation, service tax
exemption from tax on power generated; an incentive based exemption for assessment activities, duty exemption for
on generation etc. equipment purchase, tax holiday scheme and so on. Since
these projects are capital intensive, NIWE will be
Under Generation based incentive schemes, wind energy
coordinating the international bidding and it is intended to
producers get an incentive for every unit of electricity fed
develop 5GW by 2022 and 30GW by 2030. An expression
into the grid for a certain number of years with some
of interest has already been issued for a 1GW plant.
conditionalities. The idea is that it is not just sufficient to
put up a plant and have installed capacity but generation Wind energy and Solar energy supplement themselves
should actually take place from these plants resulting in ideally and reduce intermittency in power generation and it
reduction in fossil fuel consumption. makes sense to go for large hybrid solar-wind projects. In
2018, the Government issued a policy in this sector. A plant
Large wind energy producers have been given industry
would be considered as a hybrid power plant if one of the
status entitling them to many benefits. Foreign direct
sources contributes at least 25% of the power from the other
investments (FDI) have been liberalised and wheeling / third
source. Most importantly, the power thus developed could
party sale has been permitted. The government also waived
be adjusted against the renewable purchase obligations of
charges for transmission of renewable power between
the power plant. An existing solar or wind power plant
various states.
could expand into a hybrid power plant and the policy
allows integration of both AC and DC. The hybrid plant
Table 1. Wind potential at 100m hub height vs Installed
could also have a storage option to provide further
capacity consistency in power generated. More than 1.44GW of
Potential at
Installe hybrid power projects have already been awarded by SECI
Installed d capacity through e-reverse auction. In such auctions, the bidders are
State a height of 100m
Capacity in GW as % of
in GW allowed to successively lower bids within a scheduled
potential
Andhra 44.23 4.09 9.25% period of time and the selection is done online through an
automatic evaluation process.
Gujarat 84.43 7.36 8.72%

Karnataka 55.86 4.75 8.50% IV. S​MALL​ H​YDRO

Madhya pradesh 10.48 2.52 24%
While large hydro-electric projects in the present time
are not feasible or desirable, small hydro-power generation
Maharashtra 45.39 5.00 11% is still an attractive option since many times, no construction
Rajasthan 18.77 4.30 22.9% of dams is foreseen and electricity is generated from run-off
river streams. Hydel Generation between 2MW and 25MW
Tamilnadu 33.80 9.29 27.5% comes in the category of small hydro power project. Less
than 2MW comes under the category of mini or micro-hydel
project. The total estimated potential in all these categories
Wind energy is fluctuating, strategies are required for is about 21GW spread over more than 7000 sites all over the
forecasting the wind velocities. NIWE has created a country. The planned target for generating power from such
simulation based forecast system to predict wind velocities plants is 5GW before 2022 and it is a happy situation that
in advance up to 7 days. This information is shared with the 4.67GW of capacity has already been achieved. Additional
private sector industries for their benefit. 0.5GW is under implementation which would make the
Based on the success of the bidding process in solar target to be achieved comfortably.
plants, the Government came out with a tariff based bidding North-Eastern India is rich in small hydel resources and
process for wind power plants in 2017 with penalties for much of the projects have been implemented there. Some of
capacity utilisation factor less than 22%. But it proved to be the interesting projects are a 24MW project implemented in
a dampener for the industry. After further discussion with Arunachal Pradesh from the private sector and a mini-hydel
the stakeholders, the guideline was revised in 2019 to project of 450KW implemented at Leh under the ‘Ladakh
mitigate the risks associated with investment in land Renewable Energy Initiative’. Under this, Ladakh
acquisition and the penalty clause was modified. Early Renewable Energy Development Agency (LREDA) set up
commissioning has also been incentivised. It is hoped that more than 500 nos. of Commercial Green Houses (CGHs) in
these measures would result in a fresh spurt in investment the Leh region. A commercial greenhouse grows crops for
and in installed capacity. The tariffs that have been secured commercial use with special facilities. They have
in recent auctions have been as low as Rs.2.67 per KWh. transparent roofs to allow sunlight inside and prevent
With a 7600KM vast coastline, India has a large reflection. Such projects also help to satisfy defence
potential for developing offshore wind energy. Data from requirements in these areas.
satellites and other sources reveal that eight zones in
V. B​IOMASS
Tamilnadu and Gujarat have rich offshore potential
estimated to be more than 70GW. The government came The country aims to generate 10GW of power from
Biomass by the year 2022. Biomass power includes

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Biomass and Gasification plants and also Cogeneration (UDAY) scheme. This scheme seeks to bring in financial
using Bagasse. Sugar plants typically practise Cogeneration discipline in the Discoms and improve their efficiency of
whereby they generate electricity and steam from bagasse operation while keeping the tariff within limits.
for their own requirements and the excess power is sold to
The financial health of the state electrification
the grid. The potential for power generation from farms and
corporations can improve if they are allowed to set their
agro-industrial residues is about 18GW and about 8GW of
tariffs without any political interference, are allowed to
potential exists from Cogeneration making a total potential
manage their corporations professionally and when the
capacity of 26GW. Of this, till the end of 2019, about
transmission and distribution losses are reduced. Being a
9.2GW of capacity has been installed from over 500
federal structure has its limitations and the centre has to
projects.
carry the states along with their divergent views and
To promote Co-generation, the government offers a ideologies.
Central financial incentive of Rs.25 lakhs for every MW of
A considerable focus given to roof top solar projects
power generated by bagasse based Cogeneration projects
would take away some of the capital requirements and land
(however only where purchase of new boilers and turbines
issues. With the prevalence of Net metering facilities,
is required). To promote biomass gasifier based plants, a
rooftop projects have become more attractive.
central financial incentive in the form of a grant-in-aid to
the tune of 1 crore is given for projects which generate Acquisition of land required to install solar or wind
12000 cubic metre of gas per day. For Bio-CNG gas plants, power plants and obtaining the necessary clearances and
the aid is Rs.4 crore for production of 4800Kg of gas per approvals, overcoming litigation if any, is another
day and for Biogas based power generation, the aid is Rs.3 bottleneck. Many times, it involves conversion of
crore per MW of power capacity. There is however a agricultural land leading to delay in obtaining necessary
maximum cap of Rs.10 crores per project in the above clearances. In a democratic framework, all sections of the
cases. Under Swachh Bharat Mission, waste to energy people have to be carried along and the process is
plants are also being given a fillip. essentially slow. A simplification of the procedure for land
acquisition in forest areas particularly for wind energy
VI. I​NTERNATIONAL​ C​OOPERATION systems would be very beneficial.
Renewable energy generation as a tool for sustainable
Weak transmission and distribution infrastructure and
development and for safeguarding the environment cannot
losses in transmission, inadequate manufacturing capacity,
be done in isolation and the country has maintained close
non-availability of skilled manpower are some of the other
interactions with international organisations like
challenges facing development of renewable energy in a big
International Renewable Energy Agency (IRENA). The
way.
country is an active participant in the ‘United Nations
Framework on Climate Change’ for sustainable Policy stability and continuity is an essential
development of the countries of the world. requirement for any business and renewable energy systems
are no exception. The Government had introduced measures
The country is also a key member of the International
like accelerated depreciation and generation based
Solar Alliance (ISA). To support the objectives of ISA, the
country has in fact pledged resources in the form of land and incentives for wind energy plants but these were
funds.During his address in the first assembly of the unfortunately withdrawn a few years back. Though they
International Solar Alliance, the Indian prime minister put have been subsequently restored, such measures both by the
forth the concept of ‘One Sun, One World, One Grid centre and the states play havoc with the business
(OSOWOG)’. It is a grand visionary concept that since sentiments. Stability in governmental policy is expected to
some part of the world is always under the Sun at any point happen in the years to come. On the other hand,
of time, a common grid across the world can satisfy the well-meaning policy measures also fail due to poor
power requirements of all the countries of the world through implementation. A case in point would be renewable energy
solar energy. certificates. Though the measure was well intended, the
implementation has been none too satisfactory and the
VII. C​HALLENGES​ ​TO​ ​DEVELOPMENT certificates are trading at par.
Some of the issues that have to be overcome and barriers
Renewable energy systems have the fundamental
that have to be crossed to sustain the pace of renewable
difficulty that power is intermittent and large power storage
energy development and some possible solutions, are
schemes through batteries or otherwise become significant.
discussed in this section.
Ability to forecast the availability of generation and its
Enormous amounts of capital are required to set up large operation in a centralised environment and timely
power plants and paucity of sources for long term funding is dissemination of data becomes important. Maintaining the
an issue. Some of the capital outlay required to set up stability of the grid under the fluctuating renewable
projects is sourced from international financial organisations generation becomes tricky.
like the World Bank, UNIDO and Asian Development Bank
While it is important to generate power through
but timely fund disbursement is still a concern. Private
renewable energy sources, the grid should be in a position to
power producers are also bringing in resources in a big way.
To strengthen the financial health of the electrical evacuate the power. Effective grid management and
monitoring of wind energy producers for fulfillment of grid
distribution companies (DISCOMs) in the state level, the
codes will substantially help. To strengthen the grid and
government introduced a Ujwal Discom Assurance Yojana

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