(GIST OF YOJANA) Scope & Opportunities for Renewable Energy in Rural India

GIST OF YOJANA : Scope & Opportunities for Renewable Energy in Rural India

FEBRUARY-2025

Scope & Opportunities for Renewable Energy in Rural India

Introduction

India's renewable energy capacity has witnessed remarkable expansion, reaching 203.1GW in 2024, which constitutes 46.3% of the country’s overall installed capacity. Approximately 67% of the total population resides in rural areas, contributing 37% to the GDP. Despite the general Indian economy being projected to grow over 7%, rural India remains significantly behind due to inadequate foundational infrastructure such as electricity, clean water, and sanitation facilities.

Almost 300 million individuals in rural areas still lack access to grid-connected electricity, compelling them to rely on outdated energy sources like kerosene, diesel, and traditional wood-fired stoves, resulting in health risks and government subsidies.

Government Actions to Boost Renewable Energy

The Indian Government has firmly championed solar energy, particularly distributed solar solutions, sanctioning 4,604 distributed solar initiatives in rural locations to energize 4,745 villages/hamlets.

Key government actions and programs include:

Allowing Foreign Direct Investment (FDI) up to 100% via the automatic route.
National Green Hydrogen Mission: Aims for 5 MMT of annual Green Hydrogen production capacity by 2030.
Exemption from Inter State Transmission System (ISTS) charges for inter-state sales of solar and wind energy for projects to be operational by June 30, 2025, green hydrogen initiatives until December 2030, and offshore wind projects until December 2032.
Establishing Ultra Mega Renewable Energy Parks to provide land and transmission services to renewable energy developers efficiently.
Initiatives like Pradhan Mantri Kisan Urja Suraksha evam Utthaan Maha Abhiyan (PM-KUSUM), Solar Rooftop Phase II, and 12000 MW CPSU Scheme Phase II, etc.
PM Surya Ghar: Free Electricity Scheme: Aimed at installing rooftop solar setups in one crore households with a total investment of Rs 75,021 crore, to be executed by FY27.
Installation of new transmission lines and development of additional substation capacity under the Green Energy Corridor Scheme for the evacuation of renewable electricity.
Formation of a Project Development Cell dedicated to attracting and facilitating investments.
Standard Bidding Guidelines for a tariff-based competitive bidding process for procuring power from grid-connected solar PV and wind projects.
Government directives for power dispatch against Letter of Credit (LC) or advance payment to ensure prompt payments by distribution licensees to renewable energy producers.
Cabinet endorsement of a Viability Gap Funding initiative for offshore wind energy projects, supporting the establishment of 1GW of offshore wind capacity along the coastlines of Gujarat and Tamil Nadu.
The ‘National Repowering and Life Extension Policy for Wind Power Projects, 2023' has been unveiled.
Strategy for Establishment of Offshore Wind Energy Projects: Proposes a bidding trajectory of 37 GW by 2030.
Offshore Wind Energy Lease Rules, 2023: Enacted to regulate the allocation of leases for offshore wind energy development.
Established procedure for Uniform Renewable Energy Tariff (URET).
Launched Standard & Labelling (S&L) programs for Solar Photovoltaic modules and grid-connected solar inverters.
Developed a transmission strategy to enhance infrastructure until 2030.
Initiated the Green Term Ahead Market (GTAM) to facilitate the exchange of renewable energy.

Union Budget 2024-25 and Renewable Energy

In the Union Budget 2024-25, the government has designated energy as a key sector, with a total allocation of an estimated Rs 68,769 crore.
The budget highlights the creation of innovative strategies for reinforcing the shift towards renewable energy sources and enhancing energy security in terms of ‘accessibility, affordability, and availability.’
The growth of nuclear energy via small modular reactors has been spotlighted, with government plans to integrate it significantly into the energy mix for Viksit Bharat.

Pradhan Mantri Surya Ghar: Free Electricity Scheme

The Pradhan Mantri Surya Ghar: Free Electricity Scheme was introduced to install rooftop solar arrays in one crore households, offering up to 300 units of complimentary electricity monthly.
The scheme has attracted substantial interest, with over 1.28 crore registrations and 14 lakh applications, but the final approval for installations relies on respective state electricity boards, which face difficulties due to transformer capabilities and grid infrastructure constraints.

Conclusion

Proactive initiatives and bold objectives position India as a global frontrunner in renewable energy, contributing to environmental sustainability, energy security, and rural advancement. Tackling the existing challenges and maintaining a comprehensive approach towards renewable energy development will ensure that India satisfies its energy requirements while addressing climate change and resource conservation.