**Executive Summary:**
The Ministry of New and Renewable Energy outlines India's plan to enhance renewable energy capacity and reduce emissions, in line with its Nationally Determined Contribution to the UNFCCC. The goal is to achieve 50% cumulative electric power installed capacity from non-fossil fuels by 2030 and reduce Emissions Intensity of its GDP by 45% from 2005 levels. Key initiatives include bidding trajectories for RE power procurement, financial incentives, and the launch of various schemes and policies to promote renewable energy development.
**Key Points / Main Content:**
**Renewable Energy Targets and Commitments:**
* India aims for 50% of cumulative electric power installed capacity from non-fossil fuel sources by 2030.
* Target of 500 GW of installed electricity capacity from non-fossil sources by 2030.
* Reduce Emissions Intensity of GDP by 45% by 2030, from 2005 levels.
**Financial and Investment Incentives:**
* 100% Foreign Direct Investment (FDI) permitted under the automatic route.
* Waiver of Inter-State Transmission System (ISTS) charges for solar and wind power projects commissioned by June 30, 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
* Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects.
**Regulatory and Policy Measures:**
* Bidding Trajectory issued for 50 GW/annum RE power procurement bids by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
* Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory notified until 2029-30; non-compliance will attract penalties.
* Standard Bidding Guidelines issued for tariff-based competitive bidding for Grid Connected Solar, Wind, Wind-Solar Hybrid, and Firm Dispatchable RE (FDRE) projects.
* Electricity Rights of Consumers Rules, 2020 issued for net-metering up to 500 kW or the sanctioned electrical load, whichever is lower.
* National Repowering and Life Extension Policy for Wind Power Projects, 2023 issued.
* Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, ensures access to affordable green energy for consumers with a contract demand of 100 kW or more.
* Green Term Ahead Market (GTAM) launched to facilitate Renewable Energy sales through exchanges.
**Schemes and Programs:**
* Implementation of schemes like 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 PM JANMAN and DA JGUA, and National Green Hydrogen Mission.
* Implementation of Scheme for setting up Solar Parks and Ultra Mega Solar Power projects.
* Green Energy Corridor Scheme funds new transmission lines and substations for renewable power evacuation.
* Strategy for Establishment of Offshore Wind Energy Projects with a bidding trajectory of 37 GW by 2030.
**Transmission and Infrastructure:**
* Transmission plan prepared until 2030 to augment transmission infrastructure.
* Electricity Late Payment Surcharge (LPS) rules notified.
**Offshore Wind Energy:**
* Strategy for Establishment of Offshore Wind Energy Projects issued, indicating a bidding trajectory of 37 GW by 2030.
* The Offshore Wind Energy Lease Rules, 2023 have been notified to regulate the grant of lease of offshore areas for development of offshore wind energy projects.
**Impact Analysis:**
**Renewable Energy Implementing Agencies (REIAs):**
* *Impact:* Expected to issue RE power procurement bids of 50 GW/annum.
* *Action Required:* Prepare and execute bidding processes in line with the MNRE trajectory.
**Electricity Distribution Licensees:**
* *Impact:* Must ensure timely payment to RE generators through Letter of Credit (LC) or advance payment. Subject to Renewable Consumption Obligation (RCO) with penalties for non-compliance.
* *Action Required:* Comply with RCO targets, ensure timely payments to RE generators, and adapt to Green Energy Open Access rules.
**Renewable Energy Developers:**
* *Impact:* Benefit from financial incentives, streamlined bidding processes, and access to land and transmission infrastructure through solar park schemes.
* *Action Required:* Participate in bidding processes, leverage available incentives, and align project development with government policies.
**Consumers (with contract demand of 100 kW or more):**
* *Impact:* Access to affordable, reliable, and sustainable green energy through Green Energy Open Access.
* *Action Required:* Utilize Green Energy Open Access to procure renewable energy and contribute to RCO targets.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for all matters relating to new and renewable energy.
United Nations Framework Convention for Climate Change (UNFCCC): An international environmental treaty addressing climate change.
Nationally Determined Contribution (NDC): A climate action plan to cut emissions and adapt to climate impacts submitted to the UNFCCC.
Renewable Energy Implementing Agencies (REIAs): Agencies such as Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited, SJVN Limited responsible for implementing renewable energy projects.
Renewable Purchase Obligation (RPO): A regulatory mechanism requiring obligated entities to purchase a certain percentage of their electricity from renewable energy sources.
Renewable Consumption Obligation (RCO): Requires designated consumers under the Energy Conservation Act 2001 to consume a specified quantum of energy from renewable sources.
Green Energy Corridor Scheme: A scheme to fund the laying of new transmission lines and create new substation capacity for evacuation of renewable power.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM): A scheme to support farmers in installing solar pumps and solar power plants.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2899
ANSWERED ON 06.08.2025
ENHANCING RENEWABLE ENERGY CAPACITY
2899. SHRI VISHNU DAYAL RAM
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the Government has any future plan and target for renewable energy capacity
enhancement and emissions reduction;
(b) if so, the details thereof;
(c) the details of action plan prepared by the Government to address the challenges and
obstacles in the path of renewable energy development for climate action in the country; and
(d) whether the Government has launched specific initiatives to enhance India's renewable
energy capacity for climate action and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) & (b) As per the updated Nationally Determined Contribution (NDC) submitted to the
United Nations Framework Convention for Climate Change (UNFCCC), India has committed
inter alia to achieve 50 percent cumulative electric power installed capacity from non-fossil
fuel-based energy resources by 2030 and to reduce Emissions Intensity of its GDP by 45
percent by 2030, from 2005 level. In this regard, the Government has set a target of 500 GW
of installed electricity capacity from non-fossil sources by 2030, which mostly includes power
capacity from renewable sources of solar, wind, biomass and Hydro power.
(c) & (d) The measures and specific initiatives undertaken by the Government of India to
address the challenges and obstacles in the path of renewable energy development for climate
action in the country are placed in Annexure-I.
*****Annexure-I
Annexure referred to in reply of parts (c) & (d) of the Rajya Sabha Unstarred
Question No. 2899 for 06.08.2025 regarding ‘Enhancing Renewable Energy
Capacity’
The measures and specific initiatives undertaken by the Government of India to address
the challenges and obstacles in the path of renewable energy development for climate
action in the country, inter-alia, include the following:
• Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for
issuance of RE power procurement bids of 50 GW/annum by Renewable Energy
Implementing Agencies (REIAs) [REIAs: Solar Energy Corporation of India
Limited (SECI), NTPC Limited, NHPC Limited, SJVN Limited] from FY 2023-24
to FY 2027-28.
• Foreign Direct Investment (FDI) has been permitted up to 100 percent under the
automatic route.
• Inter State Transmission System (ISTS) charges have been waived for inter-
state sale of solar and wind power for projects to be commissioned by 30th June
2025, for Green Hydrogen Projects till December 2030 and for offshore wind
projects till December 2032.
• 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.
• Standard Bidding Guidelines for tariff based competitive bidding process for
procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and
Firm & Dispatchable RE (FDRE) projects have been issued.
• 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.
• 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.• 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.
• “Strategy for Establishments of Offshore Wind Energy Projects” has been issued
indicating a bidding trajectory of 37 GW by 2030 and various business models
for project development.
• 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.
• 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, has been 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 Energy 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.