India's Renewable Energy Laws

Navigating the Path to a Green Future

Deepti Mudgal
Deepti Mudgal

Published on: Nov 5, 2024

Niharika Gangwar
Niharika Gangwar

Updated on: Nov 5, 2024

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What is Renewable Energy?

Renewable energy comes from sources that are naturally replenished on a human timescale, unlike fossil fuels which take millions of years to form. These sources include:

Solar Energy:

Harnessed from the sun using solar panels or other technologies.

Wind Energy:

Generated by converting the kinetic energy of wind into electricity using wind turbines.

Hydropower:

Produced by capturing the energy of flowing or falling water, usually through dams.

Geothermal Energy:

Derived from the heat stored beneath the Earth’s surface.

Biomass:

This comes from organic materials, like plant and animal waste, that can be burned or processed to produce energy.

Ocean Energy:

Includes tidal, wave, and ocean thermal energy, derived from the movement and temperature differences in the ocean.

These sources are considered more sustainable than fossil fuels because they are more environmentally friendly and have a lower impact on climate change. Renewable energy sources like solar, wind, and hydropower can be used to generate electricity, heat homes, and power transportation systems. They help reduce greenhouse gas emissions and reliance on fossil fuels, promoting a cleaner and more sustainable energy future.

Policies and Schemes

India has implemented a range of policies and schemes to promote renewable energy and drive the country toward a sustainable energy future. These initiatives aim to increase renewable energy capacity, improve energy access, and support innovation in the sector.

S.No. Middle East Free Zone Objectives
1 National Electricity Policy (NEP)
  1. Establishes a framework for electricity sector development, with a focus on promoting renewable energy.
  2. Encourages integration of renewable energy into the national grid and sets renewable capacity targets.
2 National Renewable Energy Act (NREA)
  1. Aims to unify various renewable energy policies and provide a clear path for renewable energy growth.
  2. Creates a legal foundation for renewable energy targets and regulations.
3 National Action Plan on Climate Change (NAPCC)
  1. Outlines India’s strategy to combat climate change, including specific missions for renewable energy.
  2. Includes the National Solar Mission, National Wind Energy Mission, and other missions to enhance the use of renewable energy.
4 Solar Parks Scheme
  1. Facilitates the development of large-scale solar power parks.
  2. Provides infrastructure support for setting up solar parks with a target of developing solar parks with a cumulative capacity of 20 GW.
5 Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM)
  1. Supports farmers in using solar energy for irrigation and other purposes.
  2. Provides financial support for setting up solar pumps and grid-connected solar power systems for agricultural use.
6 Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
  1. Aims to improve electricity access and reliability in rural areas.
  2. Includes provisions for integrating renewable energy sources into rural electrification projects.
7 Green Energy Corridors
  1. Aims to facilitate the integration of renewable energy into the national grid.
  2. Develops infrastructure for efficient transmission and distribution of renewable energy.
8 Stand-Up India Scheme
  1. Provides financial support to startups in the renewable energy sector.
  2. Encourages entrepreneurship and innovation in renewable energy technologies
9 Electric Vehicle (EV) Policies
  1. Promotes the adoption of electric vehicles, which often integrate renewable energy sources.
  2. It also includes incentives for EV purchases and the development of charging infrastructure.
10 PM Surya Ghar Muft Bijli Yojana
  1. The initiative ambitiously aims to achieve its target of solarizing 1 crore households with rooftop solar installations within a year, aligning with the broader objective to attain 40 GW of rooftop solar capacity by the year 2026.

Compliance Requirements Under Renewable Energy Laws in India

India’s renewable energy sector operates under a well-defined regulatory framework that ensures the efficient development, generation, and distribution of renewable energy. The compliance landscape includes various laws, rules, and guidelines issued by regulatory bodies like the Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commissions (SERCs), and other government agencies. These are compliances that companies, organizations, and individuals must follow to ensure they are meeting legal standards in the renewable energy sector.

  1. Renewable Purchase Obligation (RPO)
    One of the primary compliance requirements in India’s renewable energy regulations is the Renewable Purchase Obligation (RPO).
    • Who must comply?
      RPO applies to distribution companies (DISCOMs), open access consumers, and captive power consumers who have a certain level of electricity consumption.
    • What is required?
      Entities subject to RPO must procure a specific percentage of their total electricity consumption from renewable sources, such as solar, wind, or biomass. The percentage is fixed by the respective State Electricity Regulatory Commission (SERC) or Central Electricity Regulatory Commission (CERC).
  2. Renewable Energy Certificate (REC) System
    The REC mechanism provides a market-based solution for meeting RPOs and encourages renewable energy generation across the country.
    • Eligibility for REC: Renewable energy generators (both grid-connected and captive plants) are eligible to participate in the REC market. They must obtain accreditation from the relevant regulatory body (either the Central Agency or State Agency).
    • Application Process: To participate in the REC scheme, eligible entities must apply for accreditation as per Rule 6 of the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022. This application is submitted with the required non-refundable processing fee and any applicable accreditation charges.
    • Issuance of RECs: After accreditation, eligible entities can apply for the issuance of RECs through a web-based platform. Energy Injection Reports, issued by the State Load Dispatch Centre (SLDC) or Regional Load Dispatch Centre (RLDC), are used to determine the amount of renewable energy generated, which then translates into the issuance of certificates. Entities must apply for the issuance of RECs within six months of generating the renewable energy.
  3. Compliance for Captive and Open Access Consumers
    • Captive Power Generation: Captive power producers must comply with RPO obligations based on the quantum of renewable energy generated and consumed. These consumers must apply for registration as captive generators and are required to submit periodic reports of renewable energy generation to the relevant regulatory authorities.
    • Open Access Consumers: Open access consumers are required to purchase renewable energy by their RPO. These consumers must maintain records and submit evidence of renewable energy purchases or REC acquisition to prove compliance with the set RPO targets.
  4. Environmental Clearances and Land Use Regulations
    • Environmental Clearance: Projects must obtain necessary clearances under the Environment Protection Act, 1986, particularly for large-scale solar, wind, or hydro projects.
    • Land Use: Renewable energy projects must comply with local land laws and zoning regulations, especially when operating on forest or protected land.
  5. Compliance for Solar Rooftop Installations
    • Regulatory Framework: The PM Surya Ghar Muft Bijli Yojana and other rooftop solar schemes provide a regulatory framework for residential, commercial, and industrial solar installations. Compliance in this area includes registration with the Central Agency and adherence to the grid code for rooftop solar systems.
    • Metering and Billing: Solar systems must have accurate metering for electricity generation and follow Net Metering Guidelines for grid integration.
  6. Bioenergy Projects Compliance
    • Waste to Energy Projects: The National Bioenergy Programme, which includes initiatives for converting agricultural and industrial waste to energy, mandates compliance with specific environmental regulations, waste handling procedures, and emission standards.<
    • Biomass and Biogas Plants: Biomass plants and biogas systems need to comply with emission norms, operational safety standards, and environmental guidelines set out under the Environment Protection Act, 1986, and local pollution control boards.

Conclusion

India’s renewable energy sector is steadily progressing towards a sustainable future, driven by a comprehensive legal and policy framework. The country’s ambitious renewable energy targets are supported by numerous policies, such as the National Renewable Energy Act, National Action Plan on Climate Change, and schemes like PM-KUSUM and the Solar Parks Scheme. To ensure this transition is smooth, compliance with various regulatory requirements, such as the Renewable Purchase Obligation (RPO) and the Renewable Energy Certificate (REC) system, is essential. Through continuous innovation, investment, and adherence to environmental and grid integration standards, India is paving the way for a greener and more energy-efficient future.

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.

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