Executive Summary:
This document outlines the Indian government's policy framework for managing solar and wind power intermittency and expanding renewable energy reach. It details measures for forecasting, grid connectivity, energy storage promotion, and project development, with a focus on achieving renewable energy targets and facilitating green energy access. Key measures include establishing Renewable Energy Management Centres (REMCs), promoting energy storage systems, and implementing schemes for solar park development.
Key Points / Main Content:
Managing Intermittency of Solar and Wind Power:
* Thirteen Renewable Energy Management Centres (REMCs) have been set up for better forecasting and real-time monitoring.
* Load dispatch centers use dispatchable sources to meet demand when renewable sources are unavailable.
* Central Electricity Authority Technical Standards for Connectivity to the Grid Regulations ensure grid safety and reliability.
* Energy storage systems deployment is promoted through ISTS charge waivers and Viability Gap Funding (VGF).
* Hybrid RE Projects, Round the Clock Projects, Firm and Despatchable RE projects are being promoted.
Energy Storage Systems Deployment:
* As of 15.07.2025, 505 MWh of battery energy storage systems are operational.
* A National Framework for promoting Energy Storage Systems has been published.
* Inter-State Transmission System (ISTS) charges are waived for renewable energy projects with energy storage systems commissioned by June 2028.
* Viability Gap Funding (VGF) has been approved for approximately 43 GWh of Battery Energy Storage Systems.
* An advisory has been issued on colocating Energy Storage Systems with Solar Power Projects.
Expansion of Renewable Energy Reach:
* MNRE has issued a bidding trajectory for RE power procurement of 50 GW annually by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
* 100% Foreign Direct Investment (FDI) is permitted under the automatic route.
* Renewable Consumption Obligation (RCO) trajectory has been notified until 2029-30.
* Standard Bidding Guidelines have been issued for tariff-based competitive bidding.
* Schemes such as PM KUSUM, PM Surya Ghar Muft Bijli Yojana, and the National Green Hydrogen Mission have been launched.
* The Green Energy Corridor Scheme funds new transmission lines and substation capacity.
* Electricity Rights of Consumers Rules, 2020, allow net metering up to 500 kW.
* A bidding trajectory of 37 GW by 2030 has been indicated for Offshore Wind Energy Projects.
Solar Park Development:
* Four solar parks with 1105 MW aggregate capacity have been approved in Maharashtra.
* State-wise annual targets for solar capacity addition are not fixed.
* Obligated entities must meet a renewable consumption obligation of 33.01% in 2025-26.
Impact Analysis:
Renewable Energy Generators:
* Impact: Affected by technical standards for grid connectivity, incentives for energy storage, and bidding guidelines.
* Action Required: Comply with grid connectivity regulations, explore energy storage options, and participate in competitive bidding processes.
State Governments:
* Impact: Responsible for proposing solar park developments and ensuring renewable consumption obligations are met.
* Action Required: Submit proposals for solar park development and ensure obligated entities meet RCO targets.
Consumers:
* Impact: Benefit from increased access to affordable and sustainable green energy.
* Action Required: Utilize net metering provisions and participate in Green Energy Open Access initiatives.
Renewable Energy Implementing Agencies (REIAs):
* Impact: Responsible for issuing RE power procurement bids.
* Action Required: Issue RE power procurement bids of 50 GW annually from FY 2023-24 to FY 2027-28.
Distribution Licensees:
* Impact: Timely payments to RE generators to be ensured.
* Action Required: Ensure timely payments to RE generators through Letter of Credit or advance payment.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for new and renewable energy.
Maharashtra: A state in India, specifically mentioned regarding solar parks and renewable energy initiatives.
Renewable Energy Management Centres (REMCs): Thirteen centers set up for better forecasting and real time monitoring of RE generation.
Central Electricity Authority: An organization that sets technical standards for connectivity to the grid.
Inter-State Transmission System (ISTS): Transmission system, charges for which are waived for renewable energy projects with energy storage systems commissioned till June 2028.
Viability Gap Funding (VGF): Financial support approved for the development of approximately 43 GWh of Battery Energy Storage Systems and Offshore Wind Energy Projects.
Solar Parks and Ultra Mega Solar Power Projects: A scheme implemented by MNRE to provide land and transmission infrastructure for large-scale RE projects.
Renewable Consumption Obligation (RCO): Obligation for obligated entities to meet a certain percentage of their energy consumption from renewable sources, set at 33.01% in 2025-26.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 523
ANSWERED ON 23/07/2025
POLICY FRAMEWORK FOR SOLAR POWER SUPPLY
523. SHRI TATKARE SUNIL DATTATREY
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the details of the policy framework to manage the intermittency of solar and wind power
supply in the country;
(b) the details of States that have been identified for tapping solar and wind energy;
(c) the details of the battery energy storage systems deployment in the country to support
renewable energy integration;
(d) the details of steps taken by the Government to expand the reach of new and renewable
energy to the people in the country, especially in Maharashtra;
(e) whether Maharashtra has been prioritized for large-scale solar parks; and
(f) if so, the targets set for solar capacity addition in the current year?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Government has taken several policy measures to manage the intermittency of solar and
wind power supply in the country, including the following:
i. Government has set up thirteen Renewable Energy Management Centres (REMCs)
for better forecasting and real time monitoring of RE generation.
ii. Load dispatch centres ensure that electricity demand is fully met using dispatchable
sources such as hydro and thermal power when the wind does not blow and sun does
not shine.
iii. Central Electricity Authority (Technical Standards for Connectivity to the Grid)
Regulations lay down the minimum technical requirements for RE generating plants
to ensure the safe, secure and reliable operation of the grid.
iv. Promoting deployment of energy storage systems through waiver of ISTS charges,
providing VGF and other policy measures.
v. Promoting Hybrid RE Projects, RE-Round the Clock Projects, Firm and Despatchable
RE projects, etc.
(b) The state/UT-wise potential of solar and wind energy is given in Annexure-I.
(c) As on 15.7.2025, battery energy storage systems of capacity aggregating to 505 MWh is in
operation in the country. Further, Government has taken following measures for deployment
of energy storage systems including battery energy storage systems:i. Published a National Framework for promoting & developing Energy Storage
Systems.
ii. Granted waiver on Inter-State Transmission System charges for renewable energy
projects with energy storage systems commissioned till June 2028.
iii. Approved Viability Gap Funding for development of approximately 43 GWh of
Battery Energy Storage Systems.
iv. Issued an ‘Advisory on co-locating Energy Storage Systems with Solar Power
Projects to enhance grid stability and cost efficiency’.
(d) Government has taken several steps to expand the reach of new and renewable energy to
the people in the country including in the state of Maharashtra. The detail of these steps is given
in Annexure-II.
(e) & (f) Under the scheme for “Development of Solar Parks and Ultra Mega Solar Power
Projects" implemented by Ministry of New and Renewable Energy (MNRE), the parks are
sanctioned based on the proposals received from the State Governments. Accordingly, the
Ministry has approved four solar parks of 1105 MW aggregate capacity in the state of
Maharashtra. State-wise annual targets for solar capacity addition are not fixed by the Ministry,
however, the obligated entities have to meet the renewable consumption obligation of 33.01%
during the current year i.e. in 2025-26.
*****Annexure-I
Annexure-I referred to reply of part (b) of the Lok Sabha Admitted Unstarred Question
No. 523 to be answered on 23.07.2025 for “Policy Framework for Solar Power Supply”
State/UT-wise potential of solar and wind energy
Sl.
STATES / UTs Wind Power Solar
No.
(MW) @ 150m (MW)
1 Andhra Pradesh 123336 38440
2 Arunachal Pradesh 246 8650
3 Assam 459 13760
4 Bihar 4023 11200
5 Chhattisgarh 2749 18270
6 Goa 14 880
7 Gujarat 180790 35770
8 Haryana 593 4560
9 Himachal Pradesh 239 33840
UT of Jammu & Kashmir
10 1 (Ladakh) 111050
(including Ladakh)
11 Jharkhand 16 18180
12 Karnataka 169251 24700
13 Kerala 2621 6110
14 Madhya Pradesh 55423 61660
15 Maharashtra 173868 64320
16 Manipur 0 10630
17 Meghalaya 55 5860
18 Mizoram 0 9090
19 Nagaland 0 7290
20 Orissa 12129 25780
21 Punjab 428 2810
22 Rajasthan 284250 142310
23 Sikkim 0 4940
24 Tamil Nadu 95107 17670
25 Telangana 54717 20410
26 Tripura 0 2080
27 Uttar Pradesh 510 22830
28 Uttarakhand 49 16800
29 West Bengal 1281 6260
30 Andaman & Nicobar 1245 0
31 Chandigarh 0 0
Dadar & Nagar Haveli &
32 17 0
Daman and Diu
33 Delhi 0 2050
34 Lakshadweep 31 0
35 Pondicherry 408 0
36 Others 0 790
Total 1163856 748990*
*Solar potential is as per old assessment.Annexure-II
Annexure-II referred to in reply of part (d) of the Lok Sabha Unstarred Question No.
523 to be answered on 23.07.2025
Major steps taken by the Government to expand the reach of new and renewable energy to
the people in the country including in the state of Maharashtra are as follows:
• 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.
• Waiver of Inter State Transmission System (ISTS) charges for RE projects.
• Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30.
• 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.