India’s renewable energy sector is now adversely affected by vacillating official policy and the curbs imposed by regulatory bodies. The sector is a key to the policy of cutting carbon emissions. The National Action Plan on Climate Change (NAPCC) generated optimism in the country as it set a target of boosting the share of renewables to 15%. But the Ministry for Renewable Energy’s new strategic plan has brought the share down to 10.5%. The current share is as low as 3.5-4%. The sudden change in policy has put stakeholders in confusion. There are many agencies in the process but the government is also taking an active interest in it. The new strategic plan sets a target of 21,700 MW for the next six years. India’s renewable energy programme leans heavily on wind and solar power. The country is among the leading producers of wind energy in the world and has seriously encouraged development of solar power in recent years. The projected increase in solar capacity can reduce India’s emissions by 2.5%. But major producers are worried about the slow progress of the scheme. The regulatory framework to promote renewable energy is yet to take concrete shape. There is reluctance to buy solar power which is much costlier than conventional power. The cost of solar power however is likely to fall while the cost of coal and liquid fuels is going up. Renewable energy in India may graduate from alternate energy to a real one.
The Union and State governments should set the following targets in the sector. Investment in R&D on renewable energy should be hiked up. A proper infrastructure should be put in place. Project delays should be eliminated and the cost of renewable energy subsidised by the government. It is a pity that the government is on the contrary slowing down the pace of development in the sector.
