There has been a rapid growth in deployment of clean/ renewable energy projects in the country attracting major investments, domestic as well as foreign.
A total installed capacity of over 10,400 MW has been added from various renewable power generation projects during the last three years viz. 2009-10, 2010-11 & 2011-12. This comprises of 7,112 MW wind power, 965 MW small hydro power, 1,414 MW bio-power and 940 MW solar power, photovoltaic and concentrating solar power.
FDI inflow to the tune of Rs.5826 cr. (USD 1245 million) in 319 renewable energy projects has been reported during the period (2009-2012). The project locations/ sites are either allotted by the State Governments or acquired by the private developers themselves, depending on the renewable energy resources involved.
The renewable energy sectors which have progressed well are wind power, bio-power, small hydro power and solar power. The Government has taken several steps to encourage development of renewable energy sector. These include the following:
* Private sector companies are partnering with government and co-investing in R&D and technology development.
* Fiscal and financial incentives, such as, capital / interest subsidies, accelerated depreciation, nil/ concessional excise and customs duties;
* Preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year;
* Jawaharlal Nehru National Solar Mission launched to facilitate large scale capital investment in solar energy sector; Payment Security Mechanism for grid connected Solar Power Projects under the Mission.
The Government also has a policy to encourage transfer of foreign technologies, including those in renewable energy sector. FDI up to 100% under the automatic route is permitted in Renewable Energy Generation and Distribution projects subject to provisions of Electricity Act, 2003.
This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply to a question in Lok Sabha today.