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Case Study
Developing renewable energy targets and supporting strategies

Developing renewable energy targets and supporting strategies

Evolution of Federal energy targets and supporting strategies in India.
Good Practice
  • Immediate relevance and impact
  • Long term impact
  • Measurable and reliable data
  • Scalable and transferable
  • Leadership and political commitment
  • Stakeholder participation
  • Integrated into existing processes
  • Transport
  • Waste Management

India, Asia

Year Published

2003 - 2013

Case Summary
Over the years India has successfully created a positive outlook necessary to promote investment in, demand for, and supply of, renewable energy. India’s strategy on renewable energy is driven by the objectives of energy access and energy security, aided by the increasing concerns of climate change and grounded in existing policy making processes. It has evolved over the years through increasingly stronger political signals at federal level, reflected in the creation of a separate Ministry for New and Renewable Energy (MNRE) and the National Action Plan on Climate Change (NAPCC).

The success of India’s renewable energy strategy relies in the dynamic policy making which allows for incremental target setting along with identification and removal of various barriers through the process. The removal of barriers through implementing policies like an accelerated depreciation scheme, generation based incentives and renewable purchase obligations have played an integral role. Decentralised implementation is a core component of this dynamic policy making, where the state governments are allowed to develop their own policy targets and regulations in line with, but independent from, federal policy. The institutional network that is responsible to implement and achieve these targets is overseen by the Ministry of New and Renewable Energy at federal level and supported by a number of national and sub-national autonomous bodies, particularly the Electricity Regulation Commissions. This network of institutions provides a nation-wide capacity and awareness building platform for renewable energy.

A key lesson learned in the process is that while a favourable policy environment is crucial for promoting renewable energy technologies, a supporting strategy for indigenous/domestic manufacturers and investment in research and development is crucial for achieving higher long-term targets.
  • The Planning Commission of India
  • Ministry of Finance
  • The Ministry of New and Renewable Energy
  • The Central Electricity Regulation Commission
  • The State Electricity Regulation Commissions
  • State nodal agencies
  • IREDA: Indian Renewable Energy Development Agency Ltd. (dedicated financial institution for renewable energy projects)
  • IEX: India Energy Exchange
  • PXIL: Power Exchange of India
Cooperation with
  • Global Environment Facility (GEF)
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
  • United Nations Development Programme (UNDP)
  • UK Department for International Development (DFID)
Renewable energy development in India is financed through the following sources: Budgetary allocations to the various programs of the MNRE in line with the Five Year Plans/annual plans. Funding from the Global Environment Facility and bilateral channels. Institutional finance provided through credit lines provided by IREDA and other banking institutions. Taxon coal production to support development and diffusion of clean energy technologies.

Results supported byUNDPWorld Resources InstituteTransparency partnership