UPSC Notes

Renewable Energy Policy & Promotion in India

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

India's ambitious renewable energy targets (e.g., 500 GW non-fossil fuel capacity by 2030), energy security, climate change mitigation, economic growth, and technological advancements in the energy sector. Policies are crucial for achieving these goals and are a significant part of India's development strategy.

India has been actively pursuing a robust policy framework to accelerate the adoption and growth of renewable energy sources, crucial for its energy security, climate change commitments, and sustainable development goals. These policies aim to create an enabling environment for investment, infrastructure development, and market mechanisms for green energy.

Phase IIStatic core

Facts & tables

Key facts

Installed Wind Capacity

India's total installed wind energy capacity reached 57,443 MW as of June 30, 2026, ranking 4th globally in wind energy installation by Dec 2025.

Key Policy Instruments

Major initiatives include the Green Energy Corridor Scheme, waiver of Inter-State Transmission System (ISTS) charges, 100% FDI under automatic route, and Renewable Purchase Obligation (RPO) / Renewable Consumption Obligation (RCO).

Market Mechanisms

The introduction of Green Term Ahead Market (GTAM) and Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, facilitates market-based procurement and consumption of green energy.

Offshore Wind Development

Specific policies like Viability Gap Funding (VGF) for Offshore Wind Energy Projects and Offshore Wind Energy Lease Rules, 2023, are in place to tap into India's offshore wind potential.

Reference table

Key Government Initiatives for Renewable Energy Promotion

Scheme/PolicyObjective
Green Energy Corridor SchemeStrengthen transmission infrastructure for renewable power evacuation.
ISTS Charges WaiverReduce transmission costs for inter-state sale of solar and wind power.
RPO/RCOMandate minimum renewable energy procurement/consumption by designated entities.
Viability Gap Funding (VGF) for Offshore WindProvide financial support to make offshore wind projects economically viable.
Green Energy Open Access Rules, 2022Facilitate access to affordable, reliable, and sustainable green energy for consumers.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaEnvironment & Ecology
Conceptual areaRenewable & Clean Energy
Conceptual areaEnvironmental Law & Policy
Conceptual areaFiscal Policy & Public Debt

Reference table

Institutions & roles

BodyRole
Ministry of New & Renewable EnergyImplements
Central Electricity Regulatory Commission (CERC)Regulates/enforces
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Statement-based questions

Prelims angle: Conceptual understanding

Quick revision

  • India's 4th global rank in wind energy installation (Dec 2025).
  • Key policies: Green Energy Corridor, ISTS waiver, RPO/RCO, VGF for Offshore Wind.
  • Market mechanisms: Green Term Ahead Market (GTAM), Green Energy Open Access Rules.
  • 100% FDI under automatic route permitted for RE projects.
  • Focus on both onshore and offshore wind development through specific policies.

High-confidence PYQs

Topic timeline

Environment & EcologyRenewable & Clean EnergyEnvironmental Law & PolicyFiscal Policy & Public Debt

India’s Installed Wind Power Capacity Reaches 57,443 MW as on June 30, 2026

22 Jul 2026 · India's renewable energy policy framework is multi-faceted, encompassing infrastructure development (Green Energy Corridor), financial incentives (ISTS waiver, VGF), market mechanisms (GTAM, Green Energy Open Access), regulatory mandates (RPO/RCO), and specific sectoral policies (Offshore Wind, Repowering) to boost green energy adoption.

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Renewable Energy Policy & Promotion in India

Practice writing on this topic

UPSC has asked 8 linked questions on Renewable Energy Policy & Promotion in India in Mains. Write an answer to one — and get it evaluated.