Strategic Plan for New and Renewable Energy Sector

The strategic plan has defined the vision of the MNRE as “to upscale and mainstream the use of new and renewable energy sources in furtherance of the national aim of energy security and energy independence, with attendant positive impact on local, national and global environment”. The plan talks about a number of areas that need strategic intervention.

• Major five themes are –
• Accurate and detailed assessment of renewable resources is identified as one key area for the Ministry.
• New R&D efforts and spending will be encouraged with an aim of reducing the cost of renewable technologies.
• Opening new market channel and business models are regarded as the most pertinent for scaling up renewables.
• The plan talks about a number of financial instruments in order to address the market risk of renewables such as introducing a risk guarantee fund, reducing cost of debt by offering tax rebates and increasing term loan period.
• Finally, the plan recognizes the current inadequacy of manpower capacity to meet the future expansion target.

Strategy 2011-17

• Promoting the concept of small power plants at tail-end of grid for both solar and biomass and developing financial support structures for the same.
• Encouraging entrepreneurship for rural electrification, facilitating new industries such as agro-residues, solar components and enabling availability of banks/ grant funds for such ventures.
• Identifying niche areas for application of off-grid renewable technologies and reducing consumption of diesel.
• Developing new financial instruments including a ‘Risk Guarantee Fund’.
• Capacity building and awareness generation in green buildings and campuses.
• Pursuing the compliance of renewable energy purchase obligations (RPO) with regulatory authorities and states.