Acts and Policies

National Offshore Wind Energy Policy 2015

Worldwide, wind energy is accepted as one of the most developed, cost-effective and proven renewable energy technologies to meet increasing electricity demands in a sustainable manner. While onshore wind energy technologies have reached a stage of large scale deployment and have become competitive with fossil fuel based electricity generation, with supportive policy regimes across the world, exploitation of offshore wind energy is yet to reach a comparable scale. India has achieved significant success in the onshore wind power development, with over 23 GW of wind energy capacity already installed and generating power.

The Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore areas within the Exclusive Economic Zone (EEZ) of the country and the National Institute of Wind Energy (NIWE) has been authorized as the Nodal Agency for development of offshore wind energy in the country and to carry out allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies. The policy paves way for offshore wind energy development including, setting up of offshore wind power projects and research and development activities, in waters, in or adjacent to the country, up to the seaward distance of 200 Nautical Miles (EEZ of the country) from the base line.

Preliminary assessments along the 7600 km long Indian coastline have indicated prospects of development of offshore wind power. With the introduction of the National Offshore Wind Energy Policy, the Government is attempting to replicate the success of the onshore wind power development in the offshore wind power development. The policy will provide a level playing field to all investors/beneficiaries, domestic and international. All the processes would be carried out in a transparent manner by NIWE. The scheme would be applicable throughout the country depending upon offshore wind potential availability.

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National Biofuel Policy

The National Policy on Biofuel was prepared by the Ministry of New and Renewable Energy. It was approved by the Union Cabinet on 11th September, 2008. The National Policy on Biofuels - 2018 builds on the achievements of the earlier National Policy on Biofuels and sets the new agenda consistent with the redefined role of emerging developments in the Renewable Sector.

1. The Policy categorises biofuels as "Basic Biofuels" viz. First Generation (1G) bioethanol & biodiesel and "Advanced Biofuels" - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.
2. The Policy expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
3. Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. Taking this into account, the Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
4. With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.
5. The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.
6. Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels has been captured in the Policy document to synergise efforts.

Source : MNRE

Provisions pertaining to renewable energy in The Electricity Act 2003

The Electricity Act contains the following provisions pertaining to non-conventional energy sources.

Under Sections 3(1) and 3(2), it has been stated that the Central Government shall, from time to time, prepare and publish the National Electricity Policy and Tariff Policy, in consultation with the state governments and authority for development of the power system based on optimal utilization of resources such as coal, natural gas, nuclear substances or material, hydro and renewable sources of energy.

Section 4 states that the Central Government shall, after consultation with the state governments, prepare and notify a national policy, permitting stand-alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas.

Section 61, 61(h) and 61(i) state that the appropriate commission shall, subject to the provision of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely, the promotion of cogeneration and generation of electricity from renewable sources of energy; and the National Electricity Policy and Tariff Policy.

Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following functions, namely, promote cogeneration and generation of electricity from renewable sources of energy by providing, suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution license.

Source : MNRE