Renewable Energy is a core concept in India's energy policy, defined as energy derived from natural sources like solar, wind, biomass, and geothermal, which are replenished on a human timescale. In the Indian context, this includes Small Hydro Power (SHP) projects up to 25 MW capacity, while large hydro projects are typically excluded from the renewable category. The modern push for this concept began in the 1970s to address energy access and security, and to reduce dependence on imported fossil fuels. India established a dedicated administrative setup in 1981, which evolved into the Ministry of New and Renewable Energy (MNRE) in 1982 (renamed in 2006) to promote its development.
The mechanism for deployment is rooted in policy and mandates, primarily governed by the Electricity Act, 2003. A key provision is the Renewable Purchase Obligation (RPO), which mandated distribution companies to procure a minimum percentage of their electricity from renewable sources. This RPO has recently been replaced by the Renewable Consumption Obligation (RCO), introduced by the Energy Conservation (Amendment) Act, 2022, which extends the mandate to certain large consumers. Further simplifying access, the Green Energy Open Access Rules, 2022, reduced the eligibility threshold for open access from 1 MW to 100 kW.
The concept connects to several major national and international initiatives, including the Jawaharlal Nehru National Solar Mission (JNNSM), launched in 2010, and the International Solar Alliance (ISA), co-founded with France in 2015. Recent policy changes include the launch of the National Green Hydrogen Mission (NGHM) in 2023 and the PM Surya Ghar Muft Bijli Yojana in February 2024. These efforts are aimed at achieving India's ambitious target of 500 GW of non-fossil fuel capacity by 2030.