India’s renewable energy sector sets eyes on rejuvenation

There’s hope yet for the sector.

India’s somnolent renewable energy (RE) sector is looking to a revitalization in line with hopes of an economic revival and from generously enabling budgetary provisions.

According to an article from Business India published in the journal India Power, India had once been primed as one of the world’s most vibrant markets for renewables, as the energy-starved country of 1.25 billion started diversifying increasingly into RE.

However, the decline of this sector under the previous Congress-led regime was spurred as much by the general recession as by policy uncertainty, a disinterested and indifferent ministry for new & renewable energy (MNRE), and inexplicable withdrawal of incentives and abrupt changes in the macro-economic framework governing the industry.

Renewables businesses were hence heartened by Finance minister Arun Jaitley’s affirmation in his maiden budget presentation on July 10 that “New and renewable energy deserves a very high priority.”

Here's more from India Power:

Some big ticket schemes he sought to revive were the four ultra mega solar power projects (UMSPPs) in Rajasthan, Gujarat, Tamil Nadu, and Ladakh (in J&K) by apportioning them Rs500 crore.

He allotted an additional Rs400 crore towards a scheme for solar power driven farm pumpsets and water pumping stations for energizing one lakh pumps.

A further Rs100 crore was budgeted for developing I MW solar parks on the banks of canals. The minister also pledged to accelerate the implementation of the Green Energy Corridor Project in this financial year to facilitate evacuation of RE across the country.

India’s renewables industry had expected the Narendra Modi government to deliver, because Gujarat, of which Modi had been Chief Minister since 2001 until his ascent as Prime Minister on 26 May 2014, has taken the lead in promoting renewables.

It had been the first state, in 2009, to outline a policy dedicated to solar power, prodding the Center to launch its Jawaharlal Nehru National Solar Mission (JNNSM) the following year.