Policies specific to Decentralized Renewable Energy (DRE)


Distributed Renewable Energy (DRE) is one of the selected key focus areas at this FICEP Platform, supporting access of clean energy to every part of the country, including in remote areas where the reach of conventional grid may not always be feasible. In order to promote the deployment of these projects, policies and schemes have been notified by the respective ministries and governments at central and state level.

Key content

National level

The Ministry of New and Renewable Energy (MNRE)

The Ministry of New and Renewable Energy (MNRE) is the nodal ministry of the Government of India responsible for research and development, international cooperation and coordination in renewable energy sources. 
Website https://mnre.gov.in/ 
Email policy-mnre@nic.in 

The key policies and schemes from the MNRE in the DRE sector include:

Framework for Promotion of Decentralised Renewable Energy (DRE) Livelihood Applications – The framework developed by the Ministry of New and Renewable Energy (MNRE) aims to enable a market-oriented ecosystem to attract private sector investment, unlock easy access to end-user finance, leverage quality control standards, promote skill development and innovations, guided by monitoring and evaluation framework to ensure long term sustainability of DRE based livelihood solutions. 
Website https://mnre.gov.in/public-information/current-notice and  https://mnre.gov.in/img/documents/uploads/file_f-1644909209115.pdf 
Email policy-mnre@nic.in 

Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) – PM-Kusum scheme was launched by the MNRE in March 2019 with the objective to bring a transformational change to the agricultural sector of India and to promote major emphasis on use of solar energy for farming. The scheme promotes installation of decentralized solar plants, installation of off-grid solar pumps in rural areas and solarisation of agriculture feeders and existing pumps in grid-connected areas.
Website https://mnre.gov.in/solar/schemes  (PM-KUSUM under Solar Off-grid tab)
Email policy-mnre@nic.in 

National Solar Mission – National Solar Mission (NSM) was launched on 11th January 2010. NSM is a major initiative of the Government of India with active participation from States to promote ecological sustainable growth while addressing India’s energy security challenges. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. The Mission’s objective is to establish India as a global leader in solar energy by creating the policy conditions for solar technology diffusion across the country as quickly as possible. The Mission targets installing 100 GW grid-connected solar power plants by the year 2022. This is line with India’s Intended Nationally Determined Contributions(INDCs) target to achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources and to reduce the emission intensity of its GDP by 33 to 35 percent from 2005 level by 2030.

In order to achieve the above target, Government of India have launched various schemes to encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc.
Website https://mnre.gov.in/solar/current-status/

DRE Livelihood Application (Policy Framework for developing and promoting Decentralised Renewable Energy Livelihood Applications) – In recent years, a wave of innovators and entrepreneurs has come up with a variety of decentralised renewable energy (DRE) livelihood applications, which are not only energy-efficient but also economically viable. These include a myriad of solutions such as solar dryer, solar or biomass powered cold storage/chiller, solar charkha, etc. Modular design of such DRE livelihood applications ensures scalability without large investments. Besides, Energy efficiency of such solutions is also important, as it in turn, determines their economic viability by reducing the size of the generation and storage (if required) asset.

Various Ministries such as Ministry of Rural Development, Ministry of Women and Child Development, Ministry of Tribal Affairs, Ministry of Micro, Small & Medium Enterprises, Ministry of Textile, Ministry of Agriculture and Farmer Welfare, Ministry of Food Processing and Ministry of Health, are implementing various schemes that support livelihoods directly or indirectly. Integration of DRE livelihood applications with these schemes will promote the use of such applications. Promotion of DRE livelihoods applications become even more relevant because of their potential to create sustainable jobs.
Website https://mnre.gov.in/img/documents/uploads/file_f-1644909209115.pdf

State level

At the state level, the respective state governments have also notified policies to promote adoption of decentralised renewable energy projects, as listed below:

Uttar Pradesh

Mini-Grid Policy, 2016 – The state of Uttar Pradesh has come up with a policy to utilise renewable energy sources for setting up Mini-Grid Projects. The policy allows the projects to be setup in unserved and underserved areas. 
Website http://upneda.org.in/ and http://upneda.org.in/policies.aspx 
Email dirupneda@gmail.com 


Policy of Promotion of Bihar New and Renewable Energy Sources, 2017 – The state of Bihar under the Policy promotes implementation of Mini-Grid Projects, and other decentralised applications such as solar streetlights, solar water heaters, solar pumps, micro wind projects, etc. 
Website https://www.breda.bih.nic.in/#  and https://www.breda.bih.nic.in/Page4All.aspx?id=16 
Email breda@breda.in


Odisha Renewable Energy Policy, 2016 – The policy promotes installation of DRE projects, including small/mini/micro grid projects, solar water pumping, biomass gasifier, micro/pico hydro projects, etc.
Website https://oredaodisha.com/ and https://oredaodisha.com/off-grid-renewable-energy-application/ 
Email ceoreda@oredaorissa.com 


Saur Krushi Vahini Yojana(SKVY) – The distribution company in Maharashtra – 
Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), is implementing the scheme to promote installation of solar power projects to supply electricity to the farmers. 
Website https://www.mahadiscom.in/solar/AG_Policy/index.php and https://mahadiscom.in/solar-mskvy/index-en.html# 
Email cere@mahadiscom.in