Government expects renewable power generation capacity to be determined with 72,400 megawatt by 2022

India’s Ministry of New and Renewable Energy estimates that the country’s total renewable power generation capacity will hit about 72,400 MW by 2022, accounting for 15.9 percent of the country’s total installed power and 6.4 percent in the national electricity mix.The forecast came after India’s current renewable power generation, as of October 31, was reported as now amounting to 18,321 MW and around 11 percent to its total installed capacity and 4.4 percent in the electricity mix, although much of this is large hydro.India’s hydropower generation grew to 37,367 MW and another 4,316 MW is under construction. Meanwhile, small hydro, biomass, biogas, wind and urban and industrial waste power reached 16,786 MW.

The increase in renewable energy production is being attributed toIndia’s 11th economic plan covering 2007 to 2012 which aims to add 14,000 MW renewable energy capacity within the plan’s timeframe.The five-year plan intends to add 10,500 MW of wind capacity to India’s current installed wind capacity of 11,000 MW, the fifth largest in the world.The plan will also add 1,400 MW in small hydro, 1,700 MW in biomass and 400 MW in urban and industrial waste power.

Incentives

The Indian government has provided fiscal and financial incentives to encourage further development in the clean energy sector and achieve the renewable energy targets.An 80 percent accelerated depreciation, capital and interest subsidy, sales tax exemption and income tax exemption effective for 10 years are among these.In addition, the government is offering preferential tariff for grid interactive renewable power. For instance, a generation-based incentive scheme for wind power offers 0.50 Indian rupees ($0.011) for every unit of electricity.The Indian government also made financial support available for the installation of solar energy systems and solar lights through the Jawaharlal Nehru Solar Mission which aims to install 20 gigawatts of solar power by 2020.The program provides a combination of a 30 percent subsidy and 5 percent interest in loans by individuals, industrial, commercial and noncommercial entities.The growth in India’s power sector is deemed crucial for supporting economic growth, which is expected to rise at 9 percent every year and would require comparable increase from power sector.Improved energy development would also help address the needs of 45 percent of Indian households that still did not have access to basic electricity services as of 2009.