As the world stands at the cusp of a climate crisis, the need for renewable energy (RE) has never been more pronounced. Having recognized this movement's urgency, India has embraced the RE sector as a cornerstone of its energy strategy. From harnessing the sun's rays to unlocking the power of wind, the government of India is pulling out all the stops to accelerate the adoption of renewable energy in the country. 

But what's truly powering this shift? A multitude of government policies, schemes, and incentives are reinforcing the energy revolution that's taking place in the country and worldwide. By boosting the RE sector, India aims to become a global leader in renewable energy. In this article, we will break down the key moves of the Indian government to energize the RE sector. 

National Solar Mission (NSM)

The NSM is one of the earliest and most significant initiatives taken by the government of India to push the generation of solar energy in the country. It aims to make India a global leader in solar energy production. From permitting 100% FDI to launching schemes like the Solar Park Scheme and CPSU Scheme, the govt. is facilitating solar energy generation and adoption. Companies like Jindal India Solar Energy Limited are key players contributing to this mission by supporting the manufacturing of solar panels.

Green Energy Corridor Project

The Green Energy Corridor Scheme aims to build a dedicated network of transmission lines to deliver renewable power from energy-rich states to other parts of the country. The government has formed a transmission plan to integrate 500 GW of renewable energy capacity by 2030. This initiative strives to seamlessly integrate solar, wind, and other green energy sources into the conventional power grid. The MNRE (Ministry of New and Renewable Energy) has allocated Rs. 4056.67 crore to the project. 

National Wind-Solar Hybrid Policy

With this policy, the government of India aims to unlock the potential of both solar and wind energy by combining the two technologies. It promotes large grid-connected wind-solar PV hybrid systems to optimize the utilization of wind and solar resources and encourages way-outs involving the combined operation of wind and solar PV plants. For instance, Jindal hybrid renewable energy systems are involved in generating electricity from solar and wind energy that share a single connection point. 

National Green Hydrogen Mission

The National Green Hydrogen Mission aims to position India as a global hub for the production, usage, and export of green hydrogen and its derivatives and reduce the country's dependence on fossil fuel imports. The government has allocated Rs. 19,700 crore to facilitate technology development and market leadership. The goal is to produce 5 MMT of green hydrogen annually by 2030 and abate 50 MMT of carbon cumulatively. 

PLI Scheme for Solar PV Manufacturing

The Production-Linked Incentive (PLI) scheme provides financial incentives to boost local manufacturing of solar PV modules. It will help the country reduce its reliance on imports while encouraging self-sufficiency in solar technology manufacturing. This scheme is a significant contributor to the growth of green solar energy in India, and our current solar power stands at 85 GW as of May 2024. 

Viability Gap Funding for BESS

Battery energy storage systems (BESS) allow seamless integration and storage of renewable energy during periods of low generation. The government has allocated viability gap funding for 4,000 MWh BESS and formulation of a detailed framework for pump storage projects. With such an impetus, Jindal India Renewable Energy Limited (JIREL) aims to become an end-to-end player in energy storage systems by 2027 with a 5 GWh capacity. 

Financial Support

Besides these policies and schemes, the Indian government has also allocated substantial funds to accelerate the growth of the RE sector. In the 2023-24 Union Budget, approximately Rs. 35,000 crore was assigned to energy transition and RE initiatives. These funds aim to scale up infrastructure, improve grid integration, and promote large-scale projects like Jindal wind energy, solar energy, and hybrid energy systems. 

Key Takeaways

There's no dearth of policies, schemes, and initiatives formulated by the government of India to boost the RE sector. While the National Solar Mission and Green Hydrogen Mission aim to establish India as a global leader in the production of solar and hydrogen energy, the National Wind-Solar Hybrid Policy and Green Energy Corridor Scheme strive to optimise various green energy resources. All in all, these measures will ensure the rapid expansion of renewable energy and set a solid foundation for the country to meet its renewable energy targets.