**Executive Summary**
This document summarizes the Indian government's plans and initiatives to advance clean energy technologies and achieve 500 GW of non-fossil fuel electricity capacity by 2030. It covers strategies for promoting renewable energy adoption, green hydrogen, energy storage, and related R&D. The document references target Renewable Consumption Obligations (RCO) for FY 2024-25 through FY 2029-30 as per the Energy Conservation (Amendment) Act 2022.
**Key Points / Main Content**
*Renewable Energy Advancement*
* Utility-scale renewable energy projects are primarily developed by private sector developers through transparent bidding processes.
* Various capacity building and skill development programs, such as Suryamitra, Vayumitra, Varunmitra, and Jal Urja Mitra, are in place to create a skilled workforce. These are being supplemented by the PM Surya Ghar Muft Bijli Yojana and National Green Hydrogen Mission.
*Renewable Energy Targets & Obligations*
* The Ministry of Power's Gazette Notification specifies minimum renewable energy consumption shares for designated consumers through Renewable Consumption Obligations (RCO).
* Year-wise RCO targets are set up to FY 2029-30, starting from FY 2024-25.
*Government Initiatives and Policies*
* Standard Bidding Guidelines have been issued for procuring power from various renewable energy projects.
* Foreign Direct Investment (FDI) is permitted up to 100% under the automatic route.
* Several schemes, including PM-KUSUM and the National Green Hydrogen Mission, have been launched.
* Inter-state transmission system charges have been waived for certain renewable energy projects.
* Quality Control Orders are in effect for solar photovoltaic products.
* Guidelines and frameworks have been issued to promote energy storage systems and resource adequacy planning.
* Rules have been issued regarding net-metering and late payment surcharges.
*Green Hydrogen Initiatives*
* The National Green Hydrogen Mission (NGHM) aims to position India as a global hub for green hydrogen.
* The Strategic Interventions for Green Hydrogen Transition (SIGHT) offers financial incentives for green hydrogen production and electrolyser manufacturing.
* Incentives are in place for electrolyser manufacturing capacity and green hydrogen production, with specific capacity targets awarded.
* The MNRE has sanctioned four Hydrogen Valley Innovation Clusters (HVICs).
*Energy Storage Systems*
* The National Electricity Plan (NEP) projects significant energy storage capacity requirements through 2031-32.
* The Ministry of Power has issued guidelines to promote Pump Storage Projects (PSP).
* A Production Linked Incentive (PLI) scheme supports the development of giga-scale ACC battery storage manufacturing facilities.
* A Viability Gap Funding (VGF) scheme supports the development of Battery Energy Storage Systems (BESS).
*Wind Energy Regulation*
* The Offshore Wind Energy Lease Rules, 2023 regulate offshore area leases for wind energy projects.
* Revised guidelines for wind turbine models and procedures for their inclusion in approved lists are in place. The RLMM has been renamed to Approved List of Models and Manufacturers [ALMM (Wind)].
**Impact Analysis**
**Stakeholder: Private Sector Developers**
*Impact:* Involved in setting up utility-scale renewable energy projects through transparent bidding.
*Action Required:* Participate in bidding processes for renewable energy projects.
**Stakeholder: Electricity Distribution Licensees, Open Access Consumers, Captive Users**
*Impact:* Subject to Renewable Consumption Obligations (RCO) with year-wise targets.
*Action Required:* Meet specified minimum renewable energy consumption shares and comply with the Energy Conservation (Amendment) Act 2022.
**Stakeholder: Renewable Energy Implementing Agencies (REIAs) and State Utilities**
*Impact:* Advised to incorporate co-located Energy Storage Systems (ESS) in future solar tenders.
*Action Required:* Incorporate minimum 2-hour co-located ESS, equivalent to 10% of solar project capacity, in future tenders.
**Stakeholder: Green Hydrogen Producers**
*Impact:* Financial incentives are available for production and electrolyzer manufacturing
*Action Required:* Participate in the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.
**Stakeholder: Renewable Energy Generators**
*Impact:* Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
*Action Required:* Ensure that power is dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees.
Key Entities Referenced
Ministry of New and Renewable Energy: The primary ministry responsible for advancing clean energy technologies and renewable energy capacity in India, including initiatives for green hydrogen, energy storage, and skill development.
Energy Conservation (Amendment) Act, 2022: The act under which Renewable Consumption Obligations (RCO) are mandated, specifying the minimum share of electrical energy consumption from renewable sources.
National Green Hydrogen Mission (NGHM): A Government of India mission to make India a global hub for the production, usage, and export of green hydrogen and its derivatives.
Renewable Purchase Obligation (RPO): Mandatory obligation for designated consumers to purchase a certain percentage of their electricity from renewable energy sources, now followed by Renewable Consumption Obligation (RCO).
PM Surya Ghar Muft Bijli Yojana: A government scheme under which capacity building and skill development are being implemented.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 472
ANSWERED ON 03.12.2025
ADVANCE CLEAN ENERGY TECHNOLOGIES
472. DR. AMAR SINGH
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the comprehensive plans of the Government to advance clean energy technologies through public-
private partnerships, investment incentives and skill development aimed at achieving 500 GW of non-
fossil fuel electricity capacity by 2030;
(b) the initiatives taken by the Government to promote emerging technologies such as green hydrogen
and advanced energy storage including efforts to foster innovation, commercialization and large-scale
deployment; and
(c) the strategy to integrate clean energy solutions with pollution reduction efforts, supported by data
on recent renewable capacity additions, environmental impact along with Government's plans to
further accelerate adoption across sectors?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Most of the utility-scale renewable energy projects in the country are being set up by private
sector developers, selected through a transparent bidding process. The Government has also taken
several steps and initiatives to promote and accelerate renewable energy capacity in the country
to realize the commitment of 500 GW non-fossil energy capacity by 2030 as given at Annexure-
I.
The Ministry has also launched various capacity building and skill development programmes to
create a skilled workforce across different segments of the renewable energy sector. The
Ministry’s skill development programmes—Suryamitra, Vayumitra, Varunmitra, and Jal Urja
Mitra—provide fully funded, residential training for renewable energy projects installation,
operation, and maintenance. Further, capacity building and skilling initiatives are also being
implemented under PM Surya Ghar Muft Bijli Yojana and National Green Hydrogen Mission.
(b) The initiatives taken by the Government to promote emerging technologies such as green
hydrogen and advanced energy storage are given at Annexure-II.
(c) The Ministry of Power, through its Gazette Notification dated 20th October 2023 and further
through its amendment dated 27th September 2025, has specified the minimum share of electrical
energy consumption from renewable energy for designated consumers, who are electricity
distribution licensees, open access consumers and captive users, pursuant to the Energy
Conservation (Amendment) Act, 2022. As per the notification following year wise Renewable
Consumption Obligations (RCO) were notified upto FY 2029-30 starting from FY 2024-25 under
the provisions of Energy Conservation (Amendment) Act 2022.Sl. Year Wind Hydro Distributed Other Total
No. energy energy renewable renewable renewable
energy energy energy
1. 2024- 0.67% 0.38% 1.50% 27.36% 29.91%
25
2. 2025- 1.45% 1.22% 2.10% 28.24% 33.01%
26
3. 2026- 1.97% 1.34% 2.70% 29.94% 35.95%
27
4. 2027- 2.45% 1.42% 3.30% 31.64% 38.81%
28
5. 2028- 2.95% 1.42% 3.90% 33.09% 41.36%
29
6. 2029- 3.48% 1.33% 4.50% 34.02% 43.33%
30
Achievement of the said targets by designated consumers through renewable capacity additions
will integrate clean energy solutions.
*****Annexure-I
Annexure-I referred to in reply of part (a) of the Lok Sabha Unstarred Question
No. 472 to be answered on 03.12.2025
The Government of India has taken several steps and initiatives to promote and accelerate
renewable energy capacity in the country to realize the commitment of 500 GW non-fossil energy
capacity by 2030. These include, inter-alia, the following:
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power
from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable Renewable
Energy (FDRE) projects have been issued.
• To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable
Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is
applicable to all designated consumers under the Energy Conservation Act 2001 will attract
penalties on non-compliance. RCO also includes specified quantum of consumption from
Decentralized Renewable Energy sources.
• Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM),
PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules,
New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri
Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh
Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability Gap Funding (VGF) Scheme
for Offshore Wind Energy Projects have been launched.
• Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented
to provide land and transmission to RE developers for installation of RE projects at large scale.
• Inter State Transmission System (ISTS) charges were waived for inter-state sale of solar and wind
power for projects commissioned by 30th June 2025, for Green Hydrogen Projects till December
2030 and for offshore wind projects till December 2032.
• Laying of new transmission lines and creating new sub-station capacity has been funded under the
Green Energy Corridor Scheme for evacuation of renewable power.
• Quality Control Orders for Solar Photovoltaic products (i.e., Solar PV Modules, Solar PV Inverters
& Storage Battery) and Solar Water Heating systems notified.
• Issued National Framework for promoting & developing Energy Storage Systems.
• Issued Guidelines for Resource Adequacy Planning Framework for India.
• Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five hundred
Kilowatt or up to the electrical sanctioned load, whichever is lower.
• “National Repowering and Life Extension Policy for Wind Power Projects, 2023” has been issued.• The Offshore Wind Energy Lease Rules, 2023 have been notified vide Ministry of External Affairs
notification dated 19th December 2023, to regulate the grant of lease of offshore areas for
development of offshore wind energy projects.
• The Revised Guidelines for installation of prototype wind turbine models issued on 12th June 2025.
• Procedure for inclusion/updating Wind Turbine Model in the Revised List of Models and
Manufacturers of Wind Turbines (RLMM) issued on 31st July 2025. The amendment renames
RLMM as Approved List of Models and Manufacturers [ALMM (Wind)] and mandates usage of
listed components such as Blade, Tower, Generator, Gearbox and Special Bearings (Main, Pitch
and Yaw Bearing) along with mandatory relocation of data centres within India and prohibition of
real-time data transfer outside India.
• The Standard Operating Procedure (SOP) for ALMM-Wind and ALMM – Wind Turbine
Components (ALMM-WTC) issued on 29th October 2025, detailing the end-to-end process for
application, verification, factory inspection, component evaluation and model enlistment.
• Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected Solar
Inverters have been launched.
• To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been
prepared till 2030.
• “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been
notified.
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022,
notified on 06th June 2022 with objective of ensuring access to affordable, reliable, and sustainable
green energy for all. Green Energy Open Access is allowed to any consumer with contract demand
of 100 kW or above through single or multiple single connection aggregating Hundred kW or more
located in same electricity division of a distribution licensee.
• Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Power
through exchanges.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or
advance payment to ensure timely payment by distribution licensees to RE generators.
****Annexure-II
Annexure-II referred to in reply of part (b) of the Lok Sabha Unstarred Question
No. 472 to be answered on 03.12.2025
Initiatives for Green Hydrogen:
The Government of India is implementing the National Green Hydrogen Mission (NGHM), with an
objective to make India a global hub of production, usage and export of green hydrogen and its
derivatives.
Strategic Interventions for Green Hydrogen Transition (SIGHT) is a key component of the Mission
which provides financial incentives for production of green hydrogen and electrolyser manufacturing.
• Incentive for Electrolyser Manufacturing: 3000 MW per annum electrolyser manufacturing
capacity has been awarded
• Incentives for production of Green Hydrogen and its derivatives:
o 8,62,000 tonnes per annum of green hydrogen production capacity has been awarded.
o Prices have been discovered by SECI for the production and supply of 7,24,000 tonnes per
annum of green ammonia
o Indian Oil & Gas Companies have awarded projects to produce and deliver 20,000 tonnes per
annum of Green Hydrogen to their refineries.
Pilot projects for utilization of green hydrogen in steel production, shipping and road transport sectors
are also being supported under the Mission.
MNRE has also sanctioned four Hydrogen Valley Innovation Clusters (HVIC) namely Jodhpur HVIC,
Pune HVIC, Bhubaneshwar HVIC and Kerala HVIC.
Research and development projects are also being supported under the Mission, with 23 projects
sanctioned under the R&D scheme of the Mission so far.
Initiative for Energy Storage Systems:
As per the National Electricity Plan (NEP) 2023 of the Central Electricity Authority (CEA), the energy
storage capacity requirement is projected to be 82.37 GWh (47.65 GWh from PSP and 34.72 GWh
from BESS) in the year 2026-27. This requirement is further expected to increase to 411.4 GWh
(175.18 GWh from PSP and 236.22 GWh from BESS) in the year 2031-32.Various initiatives have
been taken to develop the energy storage capacity in the country, including the following:
• The Ministry of Power has issued guidelines to promote the development of Pump Storage Projects
(PSP) in the country. As per data from the Central Electricity Authority (CEA), at present, 10 PSP
plants (above 25 MW capacity) are operational in the country with a total cumulative capacity of6685.60 MW. In addition, 11 PSP plants totaling 12110 MW are under various stages of
implementation.
• The Ministry of Heavy Industries (MHI), in June 2021, came out with a Production Linked Incentive
(PLI) scheme, ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage,’ for the
implementation of giga-scale ACC manufacturing facilities in India, with the aim of establishing a
competitive domestic manufacturing ecosystem for 50 GWh with a total budgetary outlay of
₹18,100 crore. 40 GWh capacity has been allocated to bidders through the Quality and Cost Based
Selection (QCBS) process, and the remaining 10 GWh has been earmarked for the Ministry of New
& Renewable Energy for grid-scale stationary storage applications.
• The Ministry of Power is having a Viability Gap Funding (VGF) scheme for the development of
4000 MWh capacity of Battery Energy Storage Systems (BESS) in the country. The total outlay for
this scheme is ₹9,400 crore, including a budgetary support of ₹3,760 crore. Due to the decline in
BESS prices, the VGF support has been extended up to 13,200 MWh BESS capacity, within the
same sanctioned financial outlay. The Ministry of Power further extended this scheme for the
development of an additional BESS capacity of 30,000 MWh with a total financial support of ₹5,400
crore through the Power System Development Fund (PSDF).
• The Central Electricity Authority (CEA) has issued an advisory on co-locating energy storage
systems with solar power projects to enhance grid stability and cost efficiency. As per the Advisory,
all Renewable Energy Implementing Agencies (REIAs) and state utilities are advised to incorporate
a minimum of 2-hour co-located Energy Storage Systems (ESS), equivalent to 10% of the installed
solar project capacity, in future solar tenders.
At present, around 505 MWh of BESS projects (≥1 MWh) have been installed in the country, while
about 75 GWh of capacity is under various stages of tendering/construction.
Further, the Ministry of New & Renewable Energy is having a Renewable Energy Research and
Technology Development (RE-RTD) Programme for promoting indigenous technology development
for widespread deployment of new and renewable energy in an efficient and cost-effective manner
across the country. The thematic research topics/areas include all types of energy storage.
In addition, Department of Science & Technology (DST), under the Clean Energy Material Initiative
(CEMI), is also funding R&D projects in the area of energy storage materials and devices.