Major Renewable Energy Missions and Policies in India

India ranks among the world’s fastest-growing renewable energy producers, driven by ambitious climate commitments and targeted national policies. Under its updated Nationally Determined Contributions (NDCs) and Panchamrit goals, the country targets 500 GW of non-fossil electricity capacity by 2030 and net-zero carbon emissions by 2070. The Ministry of New and Renewable Energy (MNRE) anchors this transition through flagship missions, production incentives, financial subsidies, and grid integration projects.

Core Renewable Energy Missions and Flagship Schemes

National Green Hydrogen Mission

• Launch and Outlay: Approved in January 2023 with an initial budget allocation of ₹19,744 crore.
• Production Target: Aims to establish 5 million metric tonnes (MMT) per annum of green hydrogen capacity by 2030, supported by 125 GW of dedicated renewable energy capacity.
• SIGHT Programme: The Strategic Interventions for Green Hydrogen Transition scheme provides direct financial incentives for local manufacturing of electrolysers and green hydrogen production.
• Sectoral Pilots: Includes targeted pilot projects in steel production, maritime shipping, and heavy transport, alongside green hydrogen manufacturing hubs.

PM Surya Ghar: Muft Bijli Yojana

• Launch and Outlay: Approved in February 2024 with a total financial outlay of ₹75,021 crore.
• Target Coverage: Aims to deliver up to 300 units of free monthly electricity to 1 crore households through residential rooftop solar setups.
• Financial Subsidy: Central Financial Assistance covers 60% of system costs for capacity up to 2 kW and 40% of additional costs for systems between 2 kW and 3 kW.
• Execution Mechanism: Utilizes a central digital portal providing direct bank transfers for subsidies and collateral-free low-interest bank loans for homeowners.

PM-KUSUM Scheme

• Objective: Promotes solar energy adoption in agriculture, reduces rural reliance on diesel, and secures farmer income.
• Component A: Targets 10,000 MW of decentralized, ground-mounted or stilt-mounted solar power plants on agricultural land.
• Component B: Supports installation of 14 lakh standalone solar agricultural pumps in off-grid regions.
• Component C: Enables solarization of 35 lakh grid-connected pumps through individual pump solarization and feeder-level solarization.
• Financial Architecture: The central government and state governments provide 30% subsidy each, leaving 40% to be met by the farmer through personal funds or bank loans.

Domestic Manufacturing and Grid Infrastructure Initiatives

Production Linked Incentive (PLI) for Solar PV

• Budget Allocation: Total budget allocation of ₹24,000 crore executed across two phases (Phase I: ₹4,500 crore; Phase II: ₹19,500 crore).
• Manufacturing Goals: Promotes domestic gigawatt-scale manufacturing facilities covering the entire value chain from polysilicon to ingots, wafers, cells, and high-efficiency modules.
• ALMM Mandate: The Approved List of Models and Manufacturers enforces mandatory procurement of locally certified solar cells and modules for all government and grid-connected solar power projects.

Green Energy Corridor (GEC) Project

• Objective: Facilitates power evacuation and grid synchronization from utility-scale renewable power projects.
• Phase I Implementation: Targets evacuation of 24 GW of renewable power across 8 states using upgraded intra-state transmission networks.
• Phase II Implementation: Focuses on evacuating 20 GW of intra-state renewable power across 13 states.
• Inter-State Transmission Systems (ISTS): Offers complete waivers on inter-state transmission charges for solar and wind projects commissioned within specified timelines.

Policy Frameworks for Offshore Wind, Hydro, and Storage

Offshore Wind Energy and Hybrid Policies

• National Wind-Solar Hybrid Policy: Promotes integrated wind and solar plants to optimize land utilization and transmission line capacity while smoothing power generation profiles.
• Offshore Wind Policy: Establishes a regulatory mechanism for offshore wind development along India’s coastline, with primary focus areas identified off Gujarat and Tamil Nadu.

Energy Storage Systems and Hydro Status

• Energy Storage Obligations (ESO): Mandates electricity distribution companies to procure defined percentages of power from Energy Storage Systems, including Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP).
• Hydro Energy Classification: Large hydropower projects exceeding 25 MW capacity carry official classification as renewable energy sources, aiding grid stability alongside variable solar and wind generation.

Renewable Purchase Obligations (RPO) Trajectory

Exam-Oriented Key Facts

• India aims to achieve 500 GW of non-fossil fuel electricity capacity by 2030 and net-zero emissions by 2070.
• India stands as the 3rd largest solar energy producer globally by total installed capacity.
• PM Surya Ghar: Muft Bijli Yojana carries a budget of ₹75,021 crore to install rooftop solar on 1 crore homes.
• PM-KUSUM targets a total solar capacity addition of 34,800 MW in the agricultural sector.
• National Green Hydrogen Mission operates with a budget of ₹19,744 crore to produce 5 MMT of green hydrogen annually by 2030.
• Strategic Interventions for Green Hydrogen Transition (SIGHT) handles production and electrolyser manufacturing incentives under the Hydrogen Mission.
• Solar PV PLI scheme allocates ₹24,000 crore to build fully integrated domestic manufacturing plants.
• Approved List of Models and Manufacturers (ALMM) regulates domestic sourcing of solar cells and modules for grid projects.
• Renewable Purchase Obligation targets require power distribution companies to source 35.95% of their electricity from renewables by 2026–27.
• Hydroelectric projects with capacities above 25 MW hold official recognition as renewable energy sources.