| Date | Version | December 14, 2022 | 2.0 |
| Keywords | Renewable Energy, Renewable Energy Sources, Power Generation, Grid Electricity, Sunshine Countries |
| List of Legislation Referred |
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| Jurisdiction | India |
Introduction
With a diverse source of energy that includes conventional energy sources like coal, oil, and natural gas, to renewable energy sources like solar, hydro, and wind energy, India is the third largest producer of electricity after China and USA.
However, the share of renewable energy remains a meagre one-fifth of the total power generation in India.
As the second most populated country in the world, India has a significant demand for energy consumption. To address this challenge, the Government has undertaken several initiatives to improve electricity accessibility and strengthen renewable energy infrastructure.
Understanding the gravity of climate change, India launched the National Action Plan on Climate Change under the National Solar Mission initiative in 2008 to encourage a gradual and sustainable shift towards renewable energy.
Incentives and Policies
Electricity falls within the Concurrent List of the Constitution of India, enabling both the Central and State Governments to enact legislation and formulate policies relating to electricity generation and renewable energy.
Governments at both levels have introduced several schemes and policy measures to facilitate the adoption of renewable energy.
- Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) for rural electrification.
- Solar photovoltaic-based systems for remote villages without proper grid infrastructure.
- PM-KUSUM Scheme to provide solar pumps for farmers.
- Atal Jyoti Yojana (AJAY) for installation of solar street lights.
- Fiscal and financial incentives for wind energy projects.
India has also emerged as one of the leading countries in solar and wind energy generation globally through active government support and policy intervention.
Legislative Framework
The Electricity (Amendment) Bill, 2018
The Bill defines renewable energy, a concept previously absent in the Electricity Act of 2003. It also proposed mandatory renewable energy obligations for coal-based generating stations.
The Draft Electricity (Amendment) Bill, 2020
The draft legislation proposed the establishment of a dedicated authority for resolving disputes related to electricity contracts, transmission, and power purchase agreements.
The Draft Renewable Energy Act, 2015
The Draft Renewable Energy Act proposed creating specialised committees and advisory groups to ensure inter-ministerial coordination and expert assistance in renewable energy matters.
Judicial Support
While renewable energy is environmentally beneficial, the transition towards cleaner energy requires careful long-term planning and sustainable implementation.
During the Glasgow Climate Summit 2021, India announced its target of shifting 40% of power generation to renewable energy sources by 2030, with solar energy contributing significantly to the target.
However, concerns relating to electronic waste generated from discarded solar panels also emerged as a major issue.
Recognising the seriousness of the issue, the National Green Tribunal directed the constitution of a Joint Committee to formulate an action plan for proper management of solar waste.
Viewpoint
Renewable energy development in India continues to face several practical challenges, including land acquisition, infrastructure investment, funding requirements, and technological limitations.
Large-scale renewable energy generation also requires strong banking support and increased participation from private sector investors.
India’s commitments under international climate agreements, including the Paris Climate Agreement, highlight the importance of implementing strong renewable energy laws and effective regulatory mechanisms.
Sustainable implementation of renewable energy policies will play a crucial role in balancing environmental protection with economic and industrial growth.
References
[1] Energy Laws in India – KnowLaw
[2] Ministry of New and Renewable Energy
[3] International Solar Alliance
[4] United Nations Climate Agreement
[5] National Green Tribunal Orders on Solar Waste
Suniti Kaur (Ms) and Sragvi Chaturvedi (Ms)
Co-Founder & Managing Partner at Alaya Legal
