Renewable Energy Strategies for Indian Power Sector

India’s energy scenario is characterized by growing demand-supply gap, inherent inefficiencies, distorded pricing mechanisms, weak institutional structure, environmental unsustainability and socio-political influences. The future economic development trajectory is likely to result in rapid and accelerated growth in energy demand, with attendant shortages and problems. Development and promotion of alternative energy sources that can lead to sustainability of energy system is imperative, in which context generation from renewables assumes increasing importance. A number of techno-economic, market-related, institutional barriers impede technology penetration. Although at present the contribution of renewable electricity is small, the capabilities promise the flexibility for responding to emerging economic, socio-environmental and sustainable developments needs.
This paper assesses the long-term renewable energy trajectories for the Indian power sector under different future scenarios. Looking into past performance trends and likely future developments under scenarios, the analysis results are compared with officially set targets for future renewable energy penetration. Specific policy interventions are outlined for overcoming the barriers and enhancing deployment of renewables, some of which relate to decentralised power supply policies, intense R&D efforts, redefined public-private partnerships, investment mobilisation, institutional reforms, market development strategies, global environmental interventions and international collaborations. It consider integration of renewable energy strategies with liberalization of energy markets, withdrawal of government interventions in energy sector and regulatory reforms.