Conference on Renewable Energy Policy Challenges in India

Over the next two decades, India- with its expanding population and robust economic growth is expected to be the second largest contributor to the surge in global energy demand[1]. This increasing demand for energy from conventional resources, in conjunction with climate change makes the sustainable generation of energy, and the expansion of the share of renewable sources, critical for the future.

Although India is well placed to build on this momentum[2], the deployment of renewable energies largely remain uneven and untapped[3] and need to be further expedited. According to N. Roberto Zagha, World Bank Country Director in India, “India needs to apply multi-pronged solutions to achieve the massive additions in generation capacity to meet the demands of its fast-growing economy. Renewable energy is one such solution, particularly in light of its economic feasibility. The entire renewable potential including solar is less expensive than diesel, where existing 20 GW of diesel based installed capacity points to innovative possibilities of scaling up renewable in a big way.”

This has led to a burgeoning interest in analysing the policies that play a pivotal role in driving renewable energy markets, investments, and industry developments[4]. According to the World Bank report titled Unleashing potential of renewables in India, although national policies facilitate an enabling environment for renewable energy development, it is the state policies and regulatory support that largely determine the pace of development. Further, the sector’s development depends upon appropriate introduction and use of different policy instruments at relevant stages of renewable energy development and consumption.

Despite the fast and on-going growth in the renewable energy sector, there are several challenges that need to be addressed specifically in the policy front to make this sector compliant with the renewable energy targets set by the government. Implementation gaps continue as a result of ineffective coordination led by multiple regulatory and institutional overlaps[5].

We, the Rural Markets Insight Division of CDF, plan to bring all the key stakeholders on a platform to discuss the current policy climate and other challenges critical to growth of renewable energy in India. Our initial analysis suggests that there is a significant disconnect between different stakeholders and this platform will not only aim at connecting them together but also help the sector in identifying the key issues that need to be addressed on policy front, as well as on business environment front.

Conference Output:

In recognition of the need to find sustainable solutions to these implementation gaps in the renewable energy sector in India, the conference intends to discuss the following issues:

1. Understand, evaluate and get a unique insight into all the key policy issues and challenges for market participants in the renewable energy domain.
2. Establish a platform for and create synergies between various renewable energy stakeholders in order to facilitate easy access to information and transfer of knowledge and skills to interested parties.
3. Develop framework that defines the roles of different stakeholders in establishing objectives for energy innovation and research.
4. To understand the general conditions needed for obtaining large scale commercial viability in the renewable energy market and understanding the obstacles in the policy framework impeding the commercialization of renewable energy technologies.

The conference (scheduled to be held in Delhi, March 2012) intends to bring together, members from TERI, The Confederation of Indian Industries, Prayas, The World Resources Institute, The New Ventures India, and other dignitaries who have been actively working on Renewable energy policy, to give a unique insight into all critical topics in the renewable energy field.

---

[1]International Energy Agency (IEA) Report 2010

The World Energy Outlook of 2011 projects renewable energy to be the fastest growing source of primary energy over the next 25 years. However, fossil fuels will remain the dominant source of energy.

[2]The report titled Unleashing the Potential of Renewable Energy in India-2011 states that India has tripled its renewable generation capacity in the last five years and ranks fifth in the world in total installed renewable energy generation capacity.

[3]The report titled Unleashing the Potential of Renewable Energy in India-2011 suggests that only 10 percent of about 150GW of known potential has been developed.

[4]Global Status Report- Renewables 2011

[5] Unleashing the Potential of Renewable Energy in India

- Sunanda Rathi, Rural Market Insight - Centre for Development Finance