A Narrative Analysis of State-Level Renewable Energy Policies in India

In the lead up to the Paris Agreement (2015), the Nationally Determined Contribution that India has announced included a reduction in emissions intensity of Gross Domestic Product (GDP) by 33–35% below 2005 levels and an increased share of non-fossil fuels to 40% with respect to power generation (as compared to 11% in 2010) by 2030. In this respect, solar, wind, biomass and small hydro-based electricity generation have emerged as the most important sources of grid-interactive renewable energy generation in India. However, given the diversity in state-level resource availability and policy implementation, it is difficult to formulate a uniform renewable policy in the country. This paper presents the general policy framework applicable including command and control, price and quantity instruments to boost renewable energy and a review of state-level policies in Tamil Nadu, Maharashtra, Gujarat and Rajasthan. These policies include solar policy, policy of repowering wind power projects and wind-solar hybrid policy. The major challenges towards the implementation of these policies are identified in terms of demand-supply mismatch, optimum financial strategy to pay for the high-end initial costs in the off-grid applications, high risk perception of using Renewable Energy Certificates, lack of credit available for developers, the lack of coherence between national renewable energy targets set by National Action Plan on Climate Change and state Renewable Purchase Obligation targets, etc.