From times immemorial, non-conventional energy sources have been used for
various applications such as for drying farm produce using solar energy and
pumping out water using windmills. The general interest in non-conventional
energy sources in India received an impetus following the oil shock of the 1970s,
backed by political commitment on the government’s part. Today, India boasts
perhaps the only Ministry of Non Conventional Energy Sources in the world.
The Ministry manages one of the world's largest renewable energy programmes
covering the whole spectrum of renewable energy technologies for a variety of
grid and off-grid applications. The country has the largest decentralized solar
energy programme, the second largest biogas and improved cookstoves
programme, and the fifth largest wind power programme in the world. A
substantial manufacturing base has been created in a variety of new and
renewable sources of energy (NRSE), placing India not only in a position to
export technology but also to offer technical expertise to other countries. These
sources have begun to emerge as an attractive option sometimes the only one, to
provide light and power to areas too remote for grid electrification. Promotion
of renewable energy sources is an integral component of the country’s strategy
for sustainable development.
Various programmes
The major programmes supported by the government include the following:-
1. Rural energy
- National Programme on Biogas Development
- National Programme on Improved Cookstoves
- Integrated Rural Energy Programme
- Rural Energy Entrepreneurship and Institutional Development
- Women and Renewable Energy Development
2. Solar energy
- Solar thermal energy Programme
- Solar water heating
- Solar cooking
- Solar air heating
- Solar buildings
- Solar Photovoltaic Programme
The programme envisages direct conversion of sunlight into electricity for
such decentralized applications as fixed and portable lighting units, water
pumping, small power plants, power for telecommunications, railway
signalling, offshore oil platforms, and TV transmission. Noteworthy
progress has been made in the following areas.
- Solar lanterns
- Solar home lighting systems
- Solar street lighting systems
- SPV power plants
- SPV water pumping units
3. Power from renewables
The following technologies are making substantial contributions to the share of
renewable sources, which makes up about 3% of the total grid capacity.
- Wind
- Small hydro
- Biomass (including bagasse-based cogeneration)
- Solar
4. Energy from urban and industrial wastes
5. New technologies
Since its inception, the MNES has been promoting RD&D to tap the potential of
other forms of energy namely:
- Chemical (fuel cells)
- Hydrogen energy
- Alternative fuel for surface transport (electric/battery-operated)
- Geothermal energy
- Ocean energy (tidal power, wave power and ocean thermal energy)
In India Investment opportunities are available for following types of investors and users:
- Investment by foreign investors in renewable energy:
Wind, Solar Photovoltaic, Solar Thermal , Small Hydro, Biomass, Co-generation, Geothermal, Tidal and Urban & Industrial Wastes based power projects.
- Investment by Indian investors in renewable energy:
Wind, Solar Photovoltaic, Solar Thermal, Small Hydro, Biomass, Co-generation, Geothermal, Tidal and Urban & Industrial Wastes based power projects; and Biogas, Improved Chulha; Solar energy; and other renewable energy based systems & devices for decentralized applications.
- Investment by Indian/foreign investors for manufacturing of renewable energy systems and devices based on:
Wind, Solar Photovoltaic, Solar Thermal , Small Hydro, Biomass, Co-generation, Geothermal, Tidal and Urban & Industrial Wastes for their utilization in India and also for exports to developing and third world countries.
- Investment by users of various renewable energy systems and devices:
for the decentralized electrical & thermal applications and installation of renewable energy power projects for their captive use.
Investment Policy Incentives
Foreign Investors can enter into a joint venture with an Indian partner for financial and/or technical collaboration and also for setting up of renewable energy based power generation projects. The liberalised foreign investment approval regime is aimed at facilitating foreign investment and transfer of technology through joint ventures.
100% foreign investment as equity is permissible.
Government of India encouraging foreign investors to set up renewable energy based pwer generation project on Build-Own-Operate basis.
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