Government Policies Fuelling the Growth of Renewable Energy in Indiat

A renewable energy revolution is taking place in the country in an attempt to reduce our carbon footprint and promote sustainable living. Driven by supportive government policies, India’s renewable energy sector is seeing unprecedented growth, with solar, wind and battery storage systems gaining momentum nationwide. With ambitious targets, generous incentives and robust policies, the government is paving the way for renewable energy companies in India to expand and innovate.

At Jindal India Renewable Energy, we’re at the forefront of this exciting transformation taking place in the RE landscape and enabling us to develop and deploy clean energy solutions that benefit communities across the country. In this blog, we will explore key government policies that are fueling the growth of renewable energy in India and highlight how we’re contributing to a cleaner, greener nation.

1. National Solar Mission

Launched in 2010 under the National Action Plan on Climate Change, India’s National Solar Mission has been critical in establishing solar energy as a reliable renewable energy source. This mission set an ambitious goal to achieve 100 GW of solar capacity by 2022. While the target was lofty, government policies, subsidies and incentives have enabled India to become one of the top solar energy producers in the world.

This mission has accelerated the development of solar parks, with policies ensuring affordable land and financial support to both local and international renewable energy companies. Leveraging this framework, companies like Jindal Renewable Energy have been able to expand our projects to bring solar power to rural and urban areas alike.

2. PLI Scheme for Solar PV Manufacturing

The Production Linked Incentive (PLI) Scheme for Solar PV Manufacturing was launched to boost the domestic production of high-efficiency solar photovoltaic (PV) modules. It aims to reduce India’s dependence on imported solar components by encouraging local manufacturing. For this, it offers financial incentives to manufacturers based on their output and efficiency, hoping to boost domestic production from raw materials to finished solar PV modules.

As a company involved in solar cell and module manufacturing, Jindal Renewable Energy is well-poised to benefit from the PLI Scheme’s incentives. This support enables us to enhance our production capabilities, adopt cutting-edge technologies and increase our output of high-efficiency solar modules.

3. National Wind-Solar Hybrid Policy

Launched in 2018, the National Wind-Solar Hybrid Policy aims to optimise the use of renewable power in India by encouraging the development of hybrid projects that combine solar and wind energy. The policy also addresses the intermittency issues common with standalone wind and solar projects, thereby providing a more stable power supply by utilising both resources together.

Under the policy, developers can set up hybrid systems sharing the same land, infrastructure and storage facilities, which reduces costs and increases the efficiency of energy production. For companies like Jindal India Renewable Energy, this policy allows us to diversify our RE portfolio and leverage existing infrastructure to provide consistent power output.

4. Green Energy Corridor Scheme

For renewable energy in India to reach consumers across urban and rural areas, effective transmission is pivotal. Aimed to modernise the country’s grid to accommodate high volumes of renewable energy, the government launched the Green Energy Corridor project. This initiative supports the integration of renewable energy into the national grid, ensuring the power generated from RE sources can be efficiently distributed. The government has formed a transmission plan to integrate 500 GW of renewable energy capacity by 2030.

5. Viability Gap Funding Scheme

A critical challenge for renewable energy companies in India is the high initial cost of setting up RE projects. To address this, the government introduced the Viability Gap Funding Scheme, offering financial support to bridge the gap between project costs and financial feasibility. This collaborative approach allows companies and government to work hand-in-hand to foster a cleaner energy future for all.

For instance, the government has allocated viability gap funding for 4,000 MWh battery energy storage systems (BESS), which is key in helping us realise our target to produce 5 GWh in energy storage systems capacity by 2027.

Key Takeaways

Underpinned by robust and forward-thinking government policies, India’s renewable energy revolution is gaining momentum each day. From the National Solar Mission and National Wind-Solar Hybrid Policy to financial incentives like Viability Gap Funding, the government has built a supportive ecosystem that encourages companies like Jindal Renewable Energy to expand, innovate and lead the way to a sustainable future.