India
India does not have a national FIT program. The central government encourages states to develop programs to promote production of electricity from renewable sources.
Summary
The most important legislative development, which had induced the recent growth in renewable power, is the “Electricity Act 2003’’ notified in June 2003. It recognizes the role of renewable energy technologies for supplying power to the utility grid as well as in stand-alone systems. The Act provides for the Independent Power Producers (IPP) to set up renewable power plants for captive use, third party sale, power trading and distribution.
The major impact of the Act is that it empowers the State Electricity Regulatory Commissions (SERCs) to promote renewable energy and specify, for purchase of electricity from renewable energy sources, a percentage of the total consumption of electricity in the area of a distribution licensee. This is considered a major boost for promotion of the renewable energy sector in India.
Although the Electricity Act 2003 mandates for all the states in India to implement such purchase obligations, as of May 2009, only fourteen State Electricity Regulatory Commissions (SERCs) out of the twenty eight states in India have issued orders/ regulations under the national Renewable Purchase Obligation. Tamil Nadu, Karnataka, Gujarat and Maharashtra are some of the leading wind energy states in India and all these states have purchase obligations. West Bengal was the first state in the country to provide a tariff for solar power. Rajasthan and Gujarat in western India and Punjab in northern India are some of the other leading states with a solar FIT.
India is set to formulate a Renewable Energy Act with a national target to meet 20 percent by 2020. At present, the share is 9 percent.
In India, the MNRE has established guidelines for generation-based incentives for grid-connected solar power generating projects for the first time in January 2008. The national cap was fixed at 15 Rupees per kWh for solar PV and 13 Rupees per kWh for solar thermal grid-connected projects. According to the guidelines, the utility will purchase the generated power at the highest rate of traded power from other sources. MNRE would provide funds for the deficit, to a maximum of 12 Rupees per kWh for solar PV and 10 Rupees per kWh for solar thermal. This will be valid for projects commissioned up to December 2009; thereafter the amount will be reduced by 5 percent. The generation-based incentive will be available for a period of 10 years from the date of commissioning.
Legal analysis
Read more information about the 2003 Electricity Act, and laws and policies encouraging the development of renewable energy in India.
More information
SOLAR / WAVE POWER PLANT POLICY
Unofficial Translation of G.R. Policy on generation of power through solar energy e.g. solar thermal, solar photovoltaic, solar photo-synthesis, wave energy etc. Government of Maharashtra. Industries, Energy & Labour Department. Mantralaya, Mumbai 400 032. Government Resolution No. NCP-1099/P.No.319/Urja-7. Dated 9th July, 1999 (Marathi G.R.)