The Karnataka Renewable Energy Policy (2009-14) sets a target of generating an additional 4200 MW through renewable energy (RE) sources. As part of this policy, the Government of Karnataka (GoK) plans to introduce a “Green Energy Cess” on commercial and industrial consumers to generate funds for financing of renewable energy projects and energy efficiency measures. The fund thus generated will be termed as the “Green Energy Fund” or “Akshaya Shakthi Nidhi’’. This policy brief highlights the Fund modalities as planned and also reports on its implementation.