Examining the Effectiveness and Relevance of Renewable Energy Policies in India

Search this article on Google: Examining the Effectiveness and Relevance of Renewable Energy Policies in India

Title: Examining the Effectiveness and Relevance of Renewable Energy Policies in India: An Incisive Policy Analysis


The global challenge of climate change has necessitated the shift from conventional fuels to renewable sources of energy. As a country with the fifth largest installed capacity in renewable energy, India has been proactive in its environmental commitment. With an ambitious goal of achieving 175 GW of renewable energy capacity by 2022, the Government of India has implemented various policies and regulatory measures. This article examines the effectiveness and relevance of these renewable energy policies, delving into the intricacies of rules, regulations, and their implications.

Policy Framework

Key policy initiatives include the National Action Plan on Climate Change (NAPCC), which has outlined eight missions dedicated to promoting sustainable development. One of the important missions under this plan, the National Solar Mission, targets a deployment of 20 GW of solar power by 2022. The Electricity Act, 2003 and the National Tariff Policy 2006 have been instrumental in providing a conducive environment for investment in renewable energy.

Moreover, measures like Renewable Purchase Obligations (RPOs) for State Electricity Regulatory Commissions (SERCs) and Renewable Energy Certificates (RECs) for power distribution companies have played significant roles in promoting green energy.

Evaluation of Policies

Despite these laudable initiatives, several challenges impede the effective realization of India’s renewable energy goals. While these policies have successfully attracted investment and spurred growth in the sector, they have also exposed certain issues within India’s approach to renewable energy.

Firstly, the mandatory RPOs have been unevenly implemented across states due to varying renewable potential and financial capabilities. This has resulted in non-compliance and deviations from renewable purchase targets.

Secondly, although the REC mechanism attempts to address these regional disparities, it is plagued by oversupply and lack of demand. The market-based instrument has not been attractive for investors due to low trading prices and counter-party risks associated with discoms.

Another challenge pertains to grid integration and management. With the increasing share of variable renewable energy in electricity production, there is a growing need for grid flexibility and stability. However, current regulations do not fully address grid integration issues, leading to curtailment of renewable power or even grid instability.


These implementation gaps point towards a need for a more comprehensive and customized approach to renewable energy policies in India. Recognition of regional disparities in renewable potential and financial capacities can pave the way for more effective state-specific RPO targets.

Further, improving investor confidence in the REC mechanism involves ensuring price stability and managing counter-party risks. This could entail interventions like price floors or guarantees to improve REC tradeability.

Lastly, grid integration issues highlight the interdependencies between energy production, transmission, and distribution. Therefore, future policies should consider a holistic electricity system perspective, integrating renewable energies with grid development and load management strategies.


While India’s renewable energy policy framework shows a strong commitment towards sustainability, effective implementation requires diligent consideration of context-specific issues. As India strides ahead in its green mission, continuous policy evaluation and adaptation will be central to reconciling global environmental commitments with local realities of energy transition.

One thought on “Examining the Effectiveness and Relevance of Renewable Energy Policies in India”

  1. If you have found this examination of the effectiveness and relevance of renewable energy policies in India helpful and are facing similar legal challenges, it may be beneficial to reach out to a reputable law firm in Chandigarh. SimranLaw, with its team of experienced lawyers in Chandigarh and advocates in Chandigarh, is well-equipped to navigate through complex legal issues.

    As one of the leading law firms in Chandigarh, SimranLaw understands that each case is unique and requires a personalized approach. The team of expert lawyers in Chandigarh and advocates in Chandigarh at SimranLaw are committed to providing comprehensive legal solutions tailored specifically to your needs.

    Whether you require guidance on renewable energy policies or any other legal matter, the advocates in Chandigarh at SimranLaw can provide the legal support you need. Don’t hesitate to reach out to SimranLaw, the trusted law firm in Chandigarh, for assistance with your legal challenges.

Comments are closed.