New Renewable Energy Act, 2015

The New Renewable Energy Act, 2015 draft was tabled by MNRE on July 14, 2015. It is most comprehensive overhaul of the legislative and economic framework to govern the renewable energy sector in India. Till now, the renewable energy sector was governed by the Electricity Act, 2003, which is also undergoing amendments.

• Basic purpose of the Act was to increase the quantity of energy through renewable resources.On the other hand, to promote renewable energy in consonance with the government of India’s international obligations to reduce emissions of CO₂ and other greenhouse gases.
• Expected Benefits: The policy would enable a supportive system for growth of the sector. The various segments which are the focus of the policy are: Renewable energy resource assessment, technical and safety standards, monitoring and verification, manufacturing and skill development and data management. The law also aims to set up dedicated renewable electricity investment zones.
• Challenges: The deployment of mass scale renewable energy in India continues to be plagued by major structural bottlenecks. The renewable projects seek heavy funds that impose an extra burden on economy. Though there are many policies for renewable energy resource usability but the implementation is not very productive and also the monitoring is very poor.
• Improvements Suggested: The need of the hour is to sensitize the issue of use of renewable energy resources at the mass scale. There must be heavy investment in this sector and supportive government policies. There should also be the political will and inclusive participation across regions and segments of the society for optimal utilization in this sector.