Technical Digest Issue - 6
RENEWABLE SOURCES OF ENERGY: POTENTIALS AND ACHIEVEMENTS
S.K. Patra and P.P.Datta
1. Introduction:
1.1 In today’s energy crisis, it is recognized that
renewable energy sources can be the alternable
sources of energy to provide the basis for sustainable
energy development on account of their
inexhaustible nature and environment-friendly
features. India is endowed with abundant sunlight,
wind, water and biomass to act as renewable sources
of energy and over the last two decades vigorous
efforts have been made to tap these renewable
energy sources for a variety of end use applications
i.e., cooking, water heating, drying, water pumping,
lighting, power generation etc. and for meeting the
decentralized energy requirements both in villages
and urban areas. India today has the world’s largest
programme for renewable energy.
1.2 During the last two decades, several renewable
energy technologies have been developed and
deployed in villages and cities. The Ministry of Non
Conventional Energy Sources (MNES), established
in 1992, and there before known as the Department
of Non Conventional Energy Sources (DNES) i.e.
from 1982-1992, a separate ministry created under
Govt. of India, is playing a major role in promoting
and developing various renewable energy
technologies in the country. Indian Renewable
Energy Development Agency (IREDA), the financial
wing of the said ministry, is also playing a key role
by providing monetary support towards
operationalization of programmes and policies of
the ministry. Apart from it, various extension
agencies, R&D institutes and financial organizations
are also actively involved in accelerating the pace
of development to meet the emerging needs. The
technologies being developed and propagated are
improved chullhas, biogas plants, biomass gasifiers,
solar thermal and solar photovoltaic systems, energy
recovery from urban, municipal and industrial
wastes, hydrogen energy, ocean energy, fuel cells,
electravans and gasohols.
2. Sources of renewable energy:
2.1 Renewable sources of
energy can be defined
as those sources of
energy, which are
renewed and can be
tapped for an infinite
time period without
exhaustion or depletion
in the potentiality of the
source to provide
power.
2.2 Sources and
achievements:
Power from the renewables
are generally derived from
the following sources of
1
Articles
energy:
1. Wind
2. Biomass
3. Biogas
4. Solar
5. Hydro
2.2.1 W i n d
Power
2.2.1.1
According
to a recent
study, the gross wind power potential has now been
estimated to be about 45,000 MW at 50mtr. hub
height. Against the same, the total installed capacity
in the country by the end of 1999-2000 stood at 1167
MW. Among the renewable sources of energy, this
source has been exploited to the maximum in view
of the comparatively simpler technology and ease
of operation.
2.2.1.2 India now ranks 5th in the world after Germany,
USA, Denmark and Spain as regards installed
capacity is concerned. Commercial projects have
so far been established mainly in Tamil Nadu,
Gujarat, Andhra Pradesh, Maharashtra and
Karnataka. The largest installation of wind power
turbines in the country so far is in the Muppandal-
Perungudi area of Kanyakumari in Tamil Nadu, with
an aggregate capacity of about 400 MW. The highest
capacities so far have come up in Tamil Nadu (720
MW), followed by Gujarat (167 MW).
2.2.1.3 In order to give impetus to the wind energy
sector in the county, MNES has issued
comprehensive revised guidelines in 1997. The
Guidelines relate to preparation of Detailed Project
Report (DPR), micro siting, selection of wind turbine
equipment, operation and maintenance,
performance evaluation, etc. These have helped the
State Electricity Boards, State Nodal Agencies,
manufacturers, developers and investors about
planned development and implementation of wind
power projects. Apart from the same, promotional
policies such as accelerated depreciation, tax
holidays, soft loans, custom and excise duty reliefs,
liberalized foreign investment procedures etc. have
been announced by MNES. Moreover, the concept
of “Wind Energy Estates”, a joint sector initiative
with the participation of the private sector, State
Governments and MNES/IREDA has been proposed
by MNES. A large number of demonstration projects
with aggregate of 55 MW have also been established
in the country at 25 different locations.
2.2.1.4 Today India has about 15 manufacturers
engaged in the production of Wind Energy
Generators (WEGs). The annual production capacity
of the domestic WEG manufacturing industry in the
country is about 500 MW. Besides, there are foreign
companies who are also providing the technologies.
Inspite of all the above, the progress of the sector is
tardy and concerted efforts are needed to identify
the bottlenecks and tie the loose ends to give
 Technical Digest Issue - 6
impetus to the programme.
2.2.2 Biomass power
2.2.2.1 Biomass Power/ Co-generation programmes
promote utilization of biomass such as straw, stalks,
stems and fines, agro-industrial processing residues
such as shells, husks and deoiled cakes, forestry
residues and woody biomass grown in specially
dedicated energy plantation, for power generation
through conversion technologies (viz. combustion,
gasification, incineration, pyrolysis etc.) using gas/
steam turbine, dual fuel engine/ gas engine, or
combination thereof, either in power alone or in co-
generation (of more than one energy forms- steam
and power mode).
The progress made in harnessing the Biomass power is
as follows:
Table-I
Items VIII th plan IX th plan
Year 1997-98 1998-99 1999-2000 2000-2001
Target (MW) 25.00 45.00 40.00 40.00
Achievement
(MW) 86.00 41.50 43.50 51.00
Source: MNES, GoI, New Delhi
NA: Not Available
2.2.2.2 The MNES, GoI has taken a large number of
initiatives in development and promotion of Biomass
Power. Some of the measures taken are as follows:
i. MNES has launched the National Biomass Resource
Assessment Programme (NBRAP) to cover all states
and union territories with the objective of providing
inputs for preparing National Biomass Resource
Atlas.
ii. A Lead Programme Partnership Initiative has been
launched for facilitating commercial Biomass Power
/ Co-generation projects.
iii. The MNES has also provided support to the limited
Demonstration Co-generation projects in
Cooperative / Public Sector Sugar Mills through Joint
Venture Companies (JVC) set up by state govt. or
IPP mode projects.
iv. Fiscal incentives such as concessional custom
duties, exemptions of excise duties and central sales
tax, tax holiday, accelerated depreciation etc. are
being provided to the developers.
2.2.3 Biogas
2.2.3.1 In the country the development of Biogas is
being under taken through the centrally sponsored
Biogas Development Programme (BDP), which
commenced in the year 1981-82. The Biogas
development programme has got three main
components namely
i. National Project on Biogas Development (NPBD),
which also caters to the family type biogas plants.
ii. Community, Institutional and Night Soil based
Biogas Plants (CBP/ IBP/NBP) programme.
iii. Research and Development on Biogas Production
and Utilization Technology.
The National Project on Biogas Development (NPBD)
was started in 1981-82 with the following objectives:
1. Providing fuel to rural households for cooking
purposes.
2. Organic manure for application in agricultural fields
3. Mitigating the drudgery of rural women
4. Reducing the pressure on forests
5. Recycling human waste by linking toilets with biogas
plants, thereby improving sanitation.
The Community and Institutional Biogas Development
Programme was initiated in 1982-83, with the scheme
for setting up of night soil based plants in community
toilet complexes being added in 1993-94. It was started
with the objective of recycling the large quantity of cattle
dung available in the villages for the benefit of the
weaker sections of society. The biogas generated is
generally used for meeting the fuel requirements of
motive power and electricity in addition to meeting
cooking gas needs of the rural populace. Through the
programme:
1. Indigenously developed models of biogas plants,
60.00 namely floating drum type and fixed dome type of
bio-gas plants are being popularized.
2. Central Financial Assistance, including Central
NA Subsidy, turnkey job fee, service charges or staff
support, training and publicity support, etc. are also
being provided.
Research and development on biogas is taken up in
the identified thrust areas, such as:
1. Studies in the field of microbiology, biochemistry,
and engineering for increasing the yield of biogas,
especially at low and high temperatures.
2. Development of cost effective designs of biogas
plants, and using alternative building material and
construction methodology for cost reduction.
3. Diversified use of digested slurry for value added
products, etc.
2.2.3.2 Cumulative achievement
The total potential of 12 million biogas plants exists in
the country.
The achievements at the end of the FY 1999-2000
indicate:
1. 3.28 million rural families have been benefited,
indicating coverage of 27% of the total potential of
biogas.
2. About 3600 night soil based and institutional biogas
plants have been set up.
3. Research and development projects have been
taken up to develop new designs and improve
operational efficiency of the biogas plants. These
plants have helped in saving 42 lakh tones of fuel
wood and in producing 430 lakh tones of manure
equivalent to 9.5 lakh tones of urea per year. In
addition an estimated 5.5 million person-days of
employment has also been generated in rural areas.
2.2.4 Solar Power
2.2.4.1 India is a solar rich country. Realizing the
importance that solar power can play in supplementing
the power requirement in the country, MNES has come
up with the following measures:
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 Technical Digest Issue - 6
• MNES is setting up a number of solar observatories
especially in the solar rich areas of the country with
a view to collect data on sunshine hours, global solar
radiation, direct and diffused solar radiation on
normal surface, ambient temperature, humidity
rainfall etc. It is proposed that these data can be
considered for implementation of large solar power
projects in the country.
• MNES is also implementing grid interactive solar
photovoltaic power projects in the modules of 25KW
for voltage support application to the rural grid in
rural areas and roof top peak saving application in
urban centers. The scheme is being implemented
through the state electricity boards, state nodal
agencies and private entrepreneurs. So far under
this scheme, 17 grid-interactive solar photovoltaic
power projects aggregating to 1165 KW power
capacity have been installed in 8 states and 2 union
territories. Another 8 projects aggregating to 500
KW power capacities in 5 states and 2 union
territories are under installation.
• A Solar Photovoltaic (SPV) Programme is also being
implemented for the last two decades which has
the following components:
n Solar Lanterns
n Home Lighting Systems
n Street Lighting Systems
n Non Grid connected SPV Power Plants
n Refrigerators for medicines and vaccines
n Other applications of PV technology including
new applications
As on 31st March 2000, 2,78,335 solar lanterns, 1,16,775
home lighting systems and 38,916 street lighting
systems have been distributed / installed. In addition,
stand alone SPV power plants of more than 1 MW
aggregate power capacity have been commissioned or
are under installation in the country.
2.2.4.2 In order to promote the SPV technology, the
MNES is providing Financial Assistance towards the
sale/ installation of SPV systems. The pattern of
financial assistance being provided is as follows:
Table-II
Pattern of central financial assistance
S.No. SPV systems Central subsidy Service charge
1 Solar lanterns Rs. 1500/- (fixed) Rs. 100/-
2 Home lighting Rs. 6000/- or 50%
systems / solar of the ex-works cost,
home systems whichever is less Rs. 200/-
3 Street lighting Rs. 12,000/- or 50%
systems of the ex-works cost,
whichever is less - small hydro projects, the MNES has introduced an
4 SPV power plants Rs. 2,00,000/- per kW
/ other systems of PV array capacity or
50% of ex-works cost
whichever is less. Rs. 10,000/-
Source: Background Note for Annual Renewable Energy
Conference on Policy Prospectives-2000-2012
3
2.2.5 Hydro Power
2.2.5.1 Small hydropower programme is one of the
thrust areas of the MNES. In order to promote activities
in this sector and to exploit the Small Hydro Power (SHP)
potential in the country in a systematic manner, the
ministry has adopted a multi pronged strategy. Among
the major initiatives taken in this regard are:
i. Identification of potential sites and their feasibility
studies.
ii. R&D cum demonstration projects with new and
innovative approach; and
iii. Technical and financial support to states to set up
grid-connected as well as decentralized small hydro
projects.
MNES has created a database for the potential sites
suitable for small/ mini/ micro hydel projects by collecting
information from various sources including the state
governments. The database now includes 3349 potential
sites with aggregate capacity of 2852 MW for projects
upto 3 MW capacity and 662 identified sites with
aggregate capacity of 5519 MW for projects of 3-15
MW.
2.2.5.2 As part of the R&D cum demonstration projects
with new and innovative approach, schemes for portable
micro hydel sets and scheme for development/up-
gradation of water mills have been launched by the
Ministry. Under the scheme for portable micro hydel sets,
light weight portable micro hydel sets upto 15 KW are
being distributed in the hilly areas and north eastern
regions of the country for providing decentralized power
supply. The ministry is meeting the full cost of the sets
where as the cost of civil works and transmission links
are borne by the local bodies/ communities concerned.
The other financial incentives being provided under the
programme are as follows:
Table -III
Category of water mills Promotional incentives
1. Water mills with : Rs. 30,000 or 75%
mechanical output of actual cost,
facility only whichever is less
2. Water mills with : Rs. 60,000 or 75%
electrical output of actual cost,
facility only whichever is less
3. Water mills with both : Rs. 60,000 or 75%
mechanical and of actual cost,
electrical output whichever is less
facilities
Source: Background Note for Annual Renewable Energy
Conference on Policy Prospectives-2000-2012
2.2.5.3 As part of technical and financial support to
states to set up grid-connected as well as decentralized
interest subsidy scheme through financial institutions.
Till 1999-2000, under this scheme, sites with total
potential over 1900 MW have been offered for
commercial usage. Interest subsidy is available for Small
Hydel Projects (SHPs) upto 25MW. Some of the
important incentives provided under the scheme are as
follows:
 Technical Digest Issue - 6

Table IV

For SHP projects in Hilly Area, North Eastern States, Sikkim and Andaman and Nicobar Islands

Capacity of SHP projects

Upto 1 MW Above 1 MW Above 5 MW Above 15 MW
and upo 5 MW and upto 15 MW and upto 25 MW
Interest subsidy 7.5% 5% 3% 2%
Eligible capital cost ceiling Rs. 6.00 crore Rs. 6.00 crore Rs. 5.00 crore Rs. 5.00 crore
per MW per MW per MW per MW
Interest subsidy support ceiling Rs. 1.25 crore Rs. 4.00 crore Rs. 6.00 crore Rs. 7.00 crore

Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012

Table V
For SHP projects in other areas
Capacity of SHP projects
Upto 1 MW Above 1 MW Above 5 MW Above 15 MW
and upto 5 MW and upto 15 MW and upto 25 MW
Interest subsidy 5% 2.5% 2% 1.5%
Eligible capital cost ceiling Rs. 5.00 crore Rs. 4.00 crore Rs. 4.00 crore Rs. 4.00 crore
per MW per MW per MW per MW
Interest subsidy support ceiling Rs. 0.75 crore Rs. 1.50 crore Rs. 3.50 crore Rs. 4.00 crore

Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012
3. Potential & Achievements:
Source / Approximate Achievement
The estimated potentials via-a-vis achievements in the System Potential (as on 31.3.2000)
Renewable Energy Sector in the country as on 31st Energy Parks 190 nos.
March 2000 is as follows: Wind Pumps 640 nos.
Hybrid Systems 88 KW
Table-VI Solar PV Pumps 3062 nos.
Solar Photovoltaic
Source / Approximate Achievement
System Potential (as on 31.3.2000) Power 1310 KW
Solar Cookers 4,74,674 nos.
Biogas plants ( No.) 120 lakh 29.78 lakh Energy recovery
Improved Chullhas from wastes 1700 MW 15.74 MW
(No.) 1200 lakh 320 lakh Battery operated
Biomass power 17,000 MW vehicles 227 nos.
and Bagasse based
Cogeneration 3500 MW 222 MW MW= Mega Watt KW= Kilo Watt
sq. km = Square Kilometer
Biomass Gasifier — 35 MW
Solar Photovoltaic 20 MW/ sq.km. 50 MW equivalent Source: Ministry of Non Conventional Energy Sources,
(about 7.0 lakh Govt. of India, New Delhi
Individual Systems) 4. Common incentives and policy framework for
Solar Thermal 35 MW/sq.km. — renewables
Solar Water Heating
Systems 30 million sq. m — Activity specific incentives were discussed under each
Collector Area 4,67,692 sq.mtr. — source of energy, however only common incentives are
Wind Power 45,000 MW 1167 MW discussed here.
Small Hydro Power 4.1 Renewable Energy Technologies in India are
(upto 15 MW) 10,000 MW 216.97 MW being promoted through R&D, demonstration projects,
Integrated Rural dissemination projects/ programmes supported by
Energy Programme 860 Blocks (old) government subsidies and fiscal incentives outlined

4
 Technical Digest Issue - 6
below:
From Central Government
1. Income tax holiday
2. Accelerated depreciation
3. Concessional custom duty/ duty free import
4. Capital / Interest subsidy
From State Governments
1. Energy buyback, power wheeling and banking
facilities.
2. Sales tax concession/benefits
3. Electricity tax exemption
4. Demand cut concession offered to industrial
consumers who establish power generation units
from renewable energy sources.
5. Capital Subsidy.
5. Organizations involved in extension work
5.1 Organizations at Central and State Level
At the national level, MNES is playing an important
role in designing the policies and guidelines for giving
a firm direction to the development of renewable
sources of power. IREDA, a centralized agency and
the financial wing of the ministry is playing an active
role by financing the policies and programmes of the
ministry for popularization and development of new
innovative technologies as well as for
operationalization of renewable energy projects.
Financing of the various renewable energy prgrammes
at the state level is being done by the concerned state
nodal agencies such as Gujarat Energy Development
Agency (GEDA) in Gujarat and Maharashtra Energy
Development Agency (MEDA) in Maharashtra etc. The
state departments of “Agriculture” and “ Agro Industries
Corporation” of various states are also playing a key
role in dissemination of information about availability
of low cost indigenous technologies and popularization
of the same.
5.2 R&D, Private and Non Governmental
Institutions and Private Manufacturers of Energy
Harnessing Equipments
Research and development of new, innovative, low
cost and indigenous technologies play a key role in
harnessing power from various renewable energy
sources. Various institutions like the IITs, RECs, and
the state level agricultural universities are involved in
development of low cost innovative renewable energy
technologies. The Indian Council for Agriculture and
Research (ICAR), a council under governorship of the
Ministry of Agriculture, through it’s research institutes
like CIAE, CIPHET, CIRCOT etc. are also developing
new technologies and are making earnest efforts in
propagating the technologies.
The private institutions are also playing a key role in
process documentation and research and
development of renewable technologies. Some of the
important agencies are the Tata Energy Research
Institute (TERI), Centre for Science and Environment
(CSE), M.S. Swaminathan Foundation etc. Non-
governmental agencies like the DHAN Foundation,
Ramakrishna Mission Loksiksha Parishad, AnARde
Foundation etc. are also making worthwhile efforts in
the development and promotion of renewables in the
country.
Private manufacturers of renewable energy harnessing
equipments are also playing a key role in the development
of renewables in the country.
5.3 Banks, international funding agencies and other
financial institutions
Various banks and international financial institutions are
also involved in financing the development and
dissemination of improved renewable energy technologies.
Some of them are the World Bank, Asian Development
Bank, US Exim Bank etc. The World Bank had provided
international assistance amounting to US $ 275 Million to
IREDA for the development of renewables in the country.
Likewise ADB has also provided financial assistance to
the tune of US $ 100 million to IREDA for the
abovementioned purpose. Apart from the same, various
international funding agencies like the Royal Netherlands
Embassy (RNE), DANIDA, UNDP’s GEF Fund and KfW
from Germany have provided international financial
assistance to the tune of 18 Million Dutch Guilders, US $
15 Million, US $ 5 Million and DM 120 Million till date to
IREDA for development of renewables in the country.
NABARD being the apex agricultural and rural
development banking institution in the country has got a
prime responsibility in the development of renewable
energy technology in the country. Some of the important
contributions made by NABARD in this sector are as
follows:
1. NABARD has been promoting the development of
renewable energy sources in the country in a big way.
Refinance is invariably being provided for installation
and commissioning of Biogas units in the country.
Apart from the same, NABARD also supports Solar
Photovoltaic (SPV) centrifugal pumpsets for on-farm
irrigation purposes, solar cookers, wind mills, briquette
making unit etc. under the renewable energy
programme.
2. It has been providing grant and other financial
assistance to premier research institutes/ NGOs etc.
from it’s Research and Development Fund for carrying
out applied research activities in the field of eco-
friendly renewable energy technologies.
6. Summary
MNES, IREDA, and its state level nodal agencies are
making a holistic approach aimed at tapping the renewable
sources of energy. The task in hand is a gigantic one.
Though numerous success stories are there in the field, a
lot still remains to be done. The areas where more
attention is required for a sustainable growth in the sector
are technology development and deployment, quality
assurance, fiscal and promotional incentives, credit
infrastructure, legislative and infrastructural support,
human resource development and institutional
development.
Therefore, an integrated approach involving the govt.
departments, local level extension agencies, financial
bodies, R&D institutes is required with proper delegation
of power for success of the programme.