National Plan on Renewable Energy

Research Team: Deepak Bawari
LEAD Centre: Centre for Development Finance (CDF)
Focus Area: Environment and Climate Change
Project Geography: India


The policy decision of partial shift from conventional to renewable sources (RE) is based on the argument that GHG emissions from energy generation associated emissions are a big contributor to the climate change, and also that the conventional sources will not be in a position to meet the mankind’s energy needs for long. RE comes from sources that are theoretically going to last forever; thus they are obvious choices for energy security of the economy. What is more important is that these energy sources have little associated emissions during the energy generation process thus also become favored energy source in the fight against climate change. The renewable energy source s are sunlight, geothermal heat, tides, wind, rain (hydroelectric), biomass etc., the natural replenishment of the energy sources makes them a reliable choice( but not always economical) for continuous energy supply.

•    The study identifies motivators that shape the national renewable energy approach and evaluates the road and means taken by the state to achieve renewable energy targets while at the same time maintaining the economic growth of the country.
•    Institutional and financial mechanisms proposed and offered to the industry to promote renewable energy efforts and state specific policy incentives studied and their appropriateness studied
•    The paper identifies major policy and product hindrances that promotes the biases with renewable energy space thus hampering the overall welfare goal of the state

Output of the study
The renewable energy space in India is biased towards selective technologies, this suppress the investment and developments in other options. In short run this may help meet the national renewable energy targets but limits the renewable energy sectoral growth, thus in the long run the overall welfare of the society is compromised. The paper presents policy and technology options and indicatives to prepare a level playing field for the existing players, and suggests that funding to the sector supported by risk management tools hold the key to true realization of the renewable energy potential in the country.