Dr.

Ram Manohar Lohia National Law University

Lucknow,U.P.

SUBJECT : INTERNATIONAL ENVIRONMENTAL LAW

TITLE OF PROJECT:

A COMPARATIVE STUDY OF INTERNATIONAL RENEWABLE ENERGY LAW

(Final Draft)

Submitted to: Submitted By:

Dr. Amandeep Singh Lokesh Nigam

Assist.Prof.(Law) Roll no. 74(9th semester)

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 ACKNOWLEDGEMENT

Any accomplishment requires effort of many people and this work is no different. I take this
opportunity to thank Dr. Amandeep Singh (Assistant Professor, Law) for giving me such a
wonderful topic for research and providing me valuable training and guidance at the various
stages of my project.

I will also remain highly indebted to the librarian for providing the requisite research material.

Lastly I am thankful to all my colleagues who have given time to help me during the completion
of the project.

Lokesh Nigam

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 TABLE OF CONTENTS

1. Introduction- ...……….4

2. Renewable Energy Law International Experience- …...…….6

 Germany
 United States of America
 Canada
 China
 Czech Republic
 Austria
 United Kingdom

3. The International Renewable Energy Agency- ……...….16

 Rationale for IRENA
 Area of Focus
 City and Local Government Policies
 Rural Renewable Energy

4. India’s Position Regarding Renewable Energy ………..20

 The Electricity Act, 2003
 Renewable Energy Agencies
 Engagement with the IRENA

5. Conclusion- ………..24

6. Bibliography- ….…….25

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 INTRODUCTION

Energy is a basic human need. Without energy, everything would come to a standstill. A
necessary factor in fostering human development and economic growth is a secure, affordable,
reliable, clean, and sustainable energy supply. Today we face monumental challenges: global
warming, the waning of natural resources, explosions in population growth, increasing energy
demand, rising energy prices, and unequal distribution of energy sources. All of these factors
contribute to the urgent need to transform the energy sector - which primarily relies on fossil
fuels - to one that uses renewable energies and energy efficient measures.

Renewable energy is one of the key solutions to the current challenges facing the world’s energy
future. Many countries already foster the production and use of renewable energy through
different approaches on a political and economic level because they recognise the many benefits
renewable energy provides1. The current use of renewable energy, however, is still limited in
spite of its vast potential. The obstacles are manifold and include: lengthy permitting procedures,
import tariffs and technical barriers, insecure financing of renewable energy projects, and
insufficient awareness of the opportunities for renewable energy.

Global challenges – The broader context2

The world is facing many challenges. Key areas of concern include the following:

 The world's population is forecast to grow by 2.5 billion by 2050, reaching a total of
some 9.2 billion. In addition, many economies are currently experiencing rapid expansion
and industrialization. As population grows and industry expands, so does the demand for
energy. If governments around the world maintain their current policies, the world's
energy needs may increase by 50% or more by 2030. In the past, these needs have been
satisfied largely by finite energy sources. These will be exhausted in the future.
 Satisfying the growing demand for energy with the help of fossil fuels and nuclear power
is becoming increasingly difficult and costly. Oil prices almost doubled within the last
year. Prices for other conventional energy sources are rising fast as well.
 The 4th Assessment Report of the IPCC predicts that temperatures will rise between
1.8°C and 4°C by the end of the twenty-first century,

1
http://www.renewablesb2b.com/ahk_south_africa/en/portal/efficiency/links/show/08e1091fe76f293f/international-
renewable-energy-agency-irena (Last Accessed on 28/09/2018)
2
www.irena.org/downloads/Prep-Con/Case_for_IRENA_EN.pdf (Last Accessed on 25/09/2018)
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  To limit global warming to no more than two degrees – as agreed at the UN Climate
Change Conference in Bali in 2007 – we must reduce global greenhouse gas emissions by
at least 50% compared to their 1990 level by 2050. The Stern Report estimates that,
without swift action, economic losses due to climate change could amount to 20% of
global GDP each year.
 More than 1.6 billion people have no access to electricity, and over 2 billion rely on wood
and dung for fuel consumption. Constructing new grids to reach these people is often
prohibitively expensive, while using fossil fuels as an energy source has negative
implications for health.

Renewable energy can meet the challenges …

Renewable energy provides sustainable power that will never run dry. Even substantial increases
in demand can be met by the enormous energy potential of wind, and other renewable energy
sources. Renewable energy brings energy prices under control. The advantages are:

 Renewable energy brings energy prices under control 3. With declining production costs,
renewable energy guarantees stable energy prices. Indeed, many renewable energy
options – particularly small-scale applications – are already competitive. Examples
include hot water from solar collectors and electricity from small hydro and wind power.
 Renewable energy makes it possible to reduce greenhouse gases and air pollution 4.
Renewable energy mostly causes only very small amounts of greenhouse gases and helps
to reduce negative health effects.
 Renewable energy can provide energy to the poorest in the world – with no need for
expensive grid solutions renewable energy can solve the energy needs of more than a
billion people around the globe5.
 One of the main advantages of renewable energy is energy security. Renewable energy is
home-grown, universally available and not reliant on an electricity grid or oil/gas
pipeline infrastructure. It reduces dependency on rapidly diminishing fossil fuel

3
https://books.google.co.in/books?isbn=3658104805 (Last Accessed on 20/09/2018)
4
http://www.ucsusa.org/clean_energy/smart-energy-solutions/increase-renewables/renewable-energy.html (Last
Accessed on 20/09/2018)
5
https://sapiens.revues.org/823 (Last Accessed on 29/09/2018)
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 resources. Renewable energy is thus an appropriate option for diversifying supply and
increasing domestic supply.
 When applied in a sustainable manner, renewable energy can reduce the pressure on
natural resources6. It therefore helps to combat deforestation, desertification and the loss
of biodiversity.
 Renewable energy is multifunctional – it can meet electricity, heating and cooling needs
as well as providing fuel for vehicles7. Renewable technology installations have the
advantage of being flexible with regard to scale and can be up and running in a
comparatively short space of time. In addition they can be integrated into either the
transmission or the distribution system.

RENEWABLE ENERGY LAW – INTERNATIONAL EXPERIENCE

World needs more and more energy. Increase in population also increases demand for energy
and world is always looking for new energetic solutions that would ensure adequate global
energy supply. There are also times when global energy demand is experiencing decline. There
are many countries around the world that have given us a good example on big potential that
renewable energy sources undoubtedly have, for instance Germany with their wind power sector,
Iceland with their geothermal energy use, China with hydro energy, and even some U.S. states
like Arizona and Florida with solar power projects. Potential is undoubtedly there, but renewable
energy sector still needs support from technology in order to develop as much as possible and
become much more affordable and efficient. With the adequate funding this can surely be
achieved. Below are the Renewable Energy Acts of some of the countries which will be
discussed elaborately, along with other countries by the researchers in the project.

Germany:
The German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) was created
in July 2007 by Germany's Federal Ministry for the Environment, Nature Conservation and
Nuclear Safety. It was designed to encourage cost reductions based on improved energy
efficiency from economies of scale over time. The German EEG was created in response to
6
http://web.stanford.edu/class/e297c/trade_environment/energy/hfossil.html (Last Accessed on 08/10/2018)
7
http://www.sciencedirect.com/science/article/pii/S1364032114000677 (Last Accessed on 08/10/2018)
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awakening call of moving away from fossil and atomic energy supplies towards a de-centralized
supply generated from renewable energy sources such as solar, wind, water, and biomass. The
EEG is an important driving force in the expansion of renewable energies in the electricity
sector. The goal is to increase the share of renewables in total electricity consumption to at least
30 percent by 2020, after which date a continuous increase is prescribed.
Since the adoption of the Electricity Feed Act in 1990, wind power has developed strongly and
hydro power has been maintained at a high level. The entry into force of the Renewable Energy
Sources Act in 2000 led to a similar boom in biomass and photovoltaics. The use of geothermal
energy for electricity generation has also developed considerably. The Renewable Energy
Sources Act has thus proved to be a model and successful instrument. International community is
on the brink of one of the greatest paradigm shifts since the start of the industrial revolution: the
shift from fossil and atomic energy supplies to renewable energy sources 8. Three of the driving
forces behind this shift are:
 The burning of fossil fuels (oil, gas and coal) to generate electricity is increasing with a
corresponding increase in greenhouse gas emissions – which contribute to global climate
change.
 Conventional energy supplies can barely satisfy the global hunger for energy. According
to a statement from the International Energy Agency in 2007 – oil production will have
reached its production peak by 2012.
 The costs of energy imports continuously rising.

Ontario, with its abundance of natural resources, has the potential to join Germany in a leading
position on the global market in renewable energies9. An Ontario Green Energy Act, modeled
after the German EEG, would:
• Be a driving force for a new industry.
• Accelerate the adoption of renewable energies.
• Act as a unique job machine.
• Provide effective climate protection.
• Create innovations for the economy and society.

8
http://www.folkecenter.dk/mediafiles/folkecenter/pdf/eeg_success_brochure_engl.pdf (Last Accessed on
15/09/2018)
9
https://www.edmonton.ca/city_government/documents/PDF/RenewableEnergyTaskForceFinalReport.pdf (Last
Accessed on 15/09/2018)
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Utility of the Act:
The EEG has introduced a fundamental change in energy supply: now any citizen could become
an energy producer10. In just a few years this created an independent and thriving renewable
energy industry that included entrepreneurs, numerous small and medium-sized businesses and a
variety of co-operatives11.
Germany's renewable energy sector is among the most innovative and successful worldwide.
Net-generation from renewable energy sources in the German electricity sector has increased
from 6.3% in 2000 to about 34% in 2016.

Economic, social and environmental benefits of the EEG:

 Investments in electricity-generating equipment from Germany are expected to increase
from 9 billion euros (2005) to an estimated 20 billion euros in 2020.
 The EEG is an effective instrument for reducing CO2 emissions.
 The German renewable energy industry is one of the most important growth industries in
Germany. It proved this again last year:
 It employs around 300,500 people
 It covers 16.3 percent of Germany electricity consumption, 8.8 percent of heat
consumption and 5.5 percent of fuel consumption renewable energy's contribution to total
energy consumption.

United States of America:

The Energy Policy Act of 2005 was passed by the United States Congress on July 29, 2005, and
signed into law by President George W. Bush on August 8, 2005. This act attempts to combat
growing energy problems by changing US energy policy by providing tax incentives and loan
guarantees for energy production of various types12.
Special features of Act are:
 Under an amendment in the American Recovery and Reinvestment Act of 2009, Section
406, the Energy Policy Act of 2005 authorizes loan guarantees for innovative
technologies that avoid greenhouse gases, which might include advanced nuclear reactor

10
https://www.cleanenergywire.org/dossiers/reform-renewable-energy-act (Last Accessed on 10/10/2018)
11
Ibid.
12
https://books.google.co.in/books?isbn=1118878426 (Last Accessed on 10/10/2018)
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 designs, such as pebble bed modular reactors (PBMRs) as well as clean coal and
renewable energy;
 the Act increases the amount of bio-fuel to be sold in the United States to 7.5 billion
gallons by 2012
 it seeks to increase coal as an energy source while also reducing air pollution, through
authorizing $200 million annually for clean coal initiatives, it authorizes subsidies for
wind and other alternative energy producers;
 it adds ocean energy sources, including wave and tidal power for the first time as
separately identified, renewable technologies;
 it authorizes $50 million annually over the life of the law for biomass grants;
 it includes provisions aimed at making geothermal energy more competitive with fossil
fuels in generating electricity;
 it requires the Department of Energy to study and report on existing natural energy
resources including wind, solar, waves and tides;
 it provides tax breaks for those making energy conservation improvements to their
homes;

Canada:
One of the nations that have just transposed a powerful Green Energy Act is Canada. The Green
Energy Acts typically express the emphasis on the need to take the proper precautionary as well
as proactive measures to do whatever it is that we can in order to save the environment, as well
as the health conditions of the people. It focus would be to use renewable energy sources 13. That
also meant that Canada’s Green Energy Act would influence further development of renewable
energy options. In addition, Canada’s Green Energy Act put a huge emphasis on the fact that the
conservation of energy was going to be most highly influenced 14. It is expected that their Green
Energy Act will also work to create a huge number of jobs for many.

13
http://www.un.org/en/ecosoc/docs/pdfs/fina_08-45773.pdf (Last Accessed on 20/09/2018)
14
http://www.world-nuclear.org/information-library/energy-and-the-environment/renewable-energy-and-
electricity.aspx (Last Accessed on 20/09/2018)
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China:
China’s Renewable Energy Law was endorsed by the Chinese Govt. on 28 February 2006 and
comes into effect from 2007. The stated objective of the law is, “to promote the development and
utilization of renewable energy, improve the energy structure, diversify energy supplies,
safeguard energy security, protect the environment, and realize the sustainable development of
the economy and society”15.
According to the law, renewable energy includes hydroelectricity, wind power, solar energy,
geothermal energy and marine energy, all of which need to be taken consideration in state and
local development plans.

Authorities of the State Council are entrusted with organizing and coordinating national surveys
and management of renewable energy sources. The council also has to set medium and long term
targets for development and utilization of renewable energy. Based on these targets the council
will develop a national renewable energy development and utilization plan.

The government has listed R&D and utilization of renewable energy as the preferential area for
hi-tech industrial development in their national program. It further allocates funding for R&D to
reduce costs of renewables, improve quality of RE products and promote technical advancements
in the development and use of renewables.

The law requires power grid operators to enter into grid connection agreements and provide grid-
connection to renewable energy power producers and also purchase power from registered
renewable energy producers. The law also offers financial incentives, such as a national fund to
foster renewable energy development, discounted lending and tax preferences for renewable
energy projects. The law includes other details related to the purchase and use of electricity from
solar photovoltaics (PV) and solar water heating as well as renewable energy fuels. Finally, the
law includes specific penalties for non-compliance with the law.

The grid's buying price for renewables are to be set by the National Development and Reform
Commission (NDRC), a regulatory department of the State Council based on the principle of
“being beneficial to the development and utilization of renewable energy and being economic
and reasonable” with timely adjustment in the buying price as is necessary. The cost of
15
https://books.google.co.in/books?isbn=9211204356 (Last Accessed on 10/10/2018)
10 | P a g e
purchasing this power will be spread across all customers on the grid. The law is expected to
foster use of renewable energy up to 10 percent by the year 2020.

China is currently the second largest consumer of energy in the world and is projected to
overtake the US as the largest consumer. To meet its growing energy needs, China has enacted
The Renewable Energy Law in 200516. Through this Act China will aim at:
1. To have 10% of primary energy consumption by 2010 and 15% of primary energy
consumption by 2020 come from renewable energy sources;
2. Non-hydro renewable power generation’s share of total power generation in areas
covered by large-scale power grids should reach 1% by 2010 and over 3% by 2020; and
3. Power generators that have privately-owned installed capacity of over 5 GW.

To further enhance the contribution in this field few suggestion are floated by China:
 The targets should be set on an annual basis and the magnitude of the targets should
increase gradually and predictably every few years. The target should continually
increase in order to drive the development of additional renewable power generation. In
addition, hydropower should continue to be excluded from the target (as it is under the
MMS policy mentioned above).
 The penalty regulations should be drafted in such a way that penalties for non-
compliance are imposed automatically without any discretion to ensure that the target is
being uniformly enforced. In addition to the penalty, the grid company should be required
to make up any shortfall in the following year to alleviate any incentive that grid
companies may have to pay the penalty rather than comply.
 In addition to financial penalties, it is worth considering a performance evaluation system
for grid company officials based on their performance in meeting their assigned targets.
Performance evaluations of government officials, which determine whether officials will
be rewarded or punished, have proven to be one of the most effective tools in ensuring
that China’s centrally determined targets are met nationwide.
 To verify that grid companies are meeting their targets, they should submit copies of all
of their power purchase agreements with renewable power generators as well as file an
annual report detailing all the power purchased throughout the year. This annual report

16
https://www.iea.org/Textbase/npsum/WEO2015SUM.pdf (Last Accessed on 25/09/2018)
11 | P a g e
 should be made public and subject to substantial penalties for false or misleading
information.
 One question is whether it would be possible to implement a trading system in which grid
companies could trade renewable energy credits (REC) for the excess or shortfall in
meeting the targets. A trading mechanism has the advantage of increasing efficiency,
reducing administrative costs and increasing flexibility. However, an adequate legal
infrastructure must be in place for such a trading scheme to work. While it is unclear if
such a system would currently be effective in China, a pilot trading scheme could be
developed to help lay the ground work for a national trading system that could be
implemented in the mid to long-term.
 Since renewable energy technologies vary widely in their cost, the targets should
differentiate between different types of renewable energy technologies (such as solar) to
encourage the development of a diverse renewable energy portfolio. This could be
accomplished by setting different percentages within the overall target for different
technologies or by setting minimum or maximum contributions from certain
technologies. The downside of these policies is they increase the administrative
complexity in enforcing the targets.

Czech Republic:
This act came into effect in 2005 primarily for regulating the promotion of electricity generation
from renewable energy sources in the Czech Republic in accordance to the existing EU laws and
directives. Under this act the RE producer has been given two choices with regard to electricity
pricing, (1) Sell the electricity to the grid operator pursuant to the conditions and prices set under
this Act or (2) to avail a green bonus for this electricity and sell it on the market. A green bonus
has been defined in this Act as a, “financial amount increasing the market price of electricity that
is paid by the operator of a regional grid system or transmission system to a producer of
electricity from renewable sources, taking account of reduced damage to the environment
resulting from use of a renewable sources compared to combustion of fossil fuels, of the type and
size of the production plant and of the quality of supplied electricity”. Captive users are also
allowed the benefit of the green bonus under the act. The Energy Regulatory Office is in charge
of setting prices for renewable electricity purchase subject to certain conditions laid down in the
law. These prices will come into effect for the first time in 2007. The above body is also

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responsible for publishing an annual progress report on status and progress of renewables.
Heavy fines have been laid down for non-compliance both for the grid operator and the
electricity producer. Preferential grid connection for RE sources is guaranteed under section 4 of
the Act and the costs are to be borne entirely by the grid operator.

The various objectives that this law wishes to achieve are as follows:
 Promote the use of renewable energy sources
 Provide for a constant increase in the contribution of renewable sources to consumption
of primary energy sources
 contribute to sound use of natural resources and sustainable development of society
 Create preconditions for fulfilment of the indicative target for the contribution of
electricity from renewable sources to the gross consumption of electricity in the Czech
Republic equal to 8 % by 2010 and create preconditions for further increase in this share
after 2010.

Austria:
Green Electricity Act, 2003 (amended 2006)
Austria’s Green Electricity Act of 2003 has been established to enact new provisions related to
renewable electricity generation and combined heat and power (CHP)17.
This Act regulates various renewable electricity related matters including mainly,
 The guarantees of origin of electricity produced from renewable energy sources;
 The obligations to purchase and pay for electricity;
 The preconditions for, and the promotion of, electricity produced from renewable energy
sources;
 The nation-wide equal sharing of costs associated with the promotion of electricity
produced from renewable energy sources and from CHP plants.
 The objectives of the Act aimed at protecting the climate and the environment are as
follows
 To achieve the target of 78.1 % of electricity from renewable sources by 2010.
 To make good use of the means of promoting renewables and to try and achieve market
maturity for new technologies
17
http://www.reshaping-res-policy.eu/downloads/RE-Shaping_CP_final_18JAN2012.pdf (Last Accessed on
05/10/2018)
13 | P a g e
  To support CHP plants used for public district heating supply.
 To have at least 9% of electricity from hydropower plants with capacity less than 10 MW
by 2008.
 To promote renewable electricity and provide for a nation wise burden sharing scheme
for electricity from renewables and CHP.

“Renewable energy sources” are defined as renewable non-fossil energy sources (wind, solar,
geo-thermal, wave, tidal, hydropower, biomass, waste containing a high percentage of biogenous
materials, landfill gas, sewage treatment plant gas and biogases)18;

The following two areas are eligible for support under this act:
 Support for electricity produced from renewable energy sources through minimum price
mechanism and the obligation to purchase such electricity. Hydropower plants with a
maximum capacity of more than 10 MW and electricity from animal meal, spent lye,
sewage sludge or waste, save waste containing a high percentage of biogenous materials
are not entitled to the above support.
 Existing and modernized CHP plants used for public district heating are entitled for
support in the form of reimbursements for part of the operating costs

United Kingdom:
It has various major acts covering use of renewables. These are briefly described below-

Sustainable Energy Act 2003:

This act deals with the provisions for the development and promotion of a sustainable energy
policy. The act makes it mandatory for the secretary of state to publish annually a “sustainable
energy report” which would indicate progress made towards-
(a) Cutting the United Kingdom’s carbon emissions;
(b) Maintaining the reliability of the United Kingdom’s energy supplies;
(c) Promoting competitive energy markets in the United Kingdom; and
(d) Reducing the number of people living in fuel poverty in the United Kingdom.
The act also requires the Secretary of State to specify targets for electricity production from
Combined Heat and Power (CHP) Plants.
18
http://www.eia.gov/energyexplained/?page=nonrenewable_home (Last Accessed on 28/09/2018)
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Energy Act 2004:
The Secretary of State is required to publish a strategy for promotion of micro-generation after
considering its possibility for:
(a) cutting emissions of greenhouse gases in Great Britain;
(b) reducing the number of people living in fuel poverty in Great Britain;
(c) reducing the demands on transmission systems and distribution systems
situated in Great Britain;
(d) reducing the need for those systems to be modified;
(e) enhancing the availability of electricity and heat for consumers in Great Britain.

Offshore renewable energy production:

The act lays down specific guidelines and regulations for the use of areas outside the territorial
sea for exploration and exploitation of energy especially from water and wind energy. The act
also lays down regulations for the transmission, distribution and supply of electricity generated
in such areas and also for de-commissioning of such renewable energy projects. The government
has also reserved the right to declare such an area as a “Renewable Energy Zone” for the above
purpose.

THE INTERNATIONAL RENEWABLE ENERGY AGENCY (IRENA)

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The International Renewable Energy Agency (IRENA) was officially established in Bonn on 26
January 200919. To date, 150 States and the European Union signed the Statute of the Agency;
amongst them are 48 African, 38 European, 35 Asian, 17 American and 10 Australia/Oceania
States. International cooperation over renewable energy was further strengthened following the
World Summit on Sustainable Development (WSSD) in 200220. In 2004, the International
Parliamentary Forum on Renewable Energy hosted by the German Parliament again raised the
issue of setting up an international renewable energy agency 21. Institutional questions also
appeared on the agenda of the renewable energy conferences in Bonn in 2004 and Beijing in
2005, in the form of Political Declarations. Now it is time for action. The next step is to found
an international governmental agency for renewable energy, to be known by its acronym
IRENA. This organisation should be established by a broad group of countries, including both
large and small industrialised and developing countries. IRENA’s main objective will be to
foster and promote the large-scale adoption of renewable energy worldwide22.

This overall objective can be broken down into a number of concrete targets:

 improved regulatory frameworks for renewable energy through enhanced policy advice;
 improvements in the transfer of renewable energy technology;
 progress on skills and know-how for renewable energy;
 a scientifically sound information basis through applied policy research; and
 better financing of renewable energy.

Through its objective, IRENA will help to reduce the pressure on finite energy sources, provide
a sound basis for meeting future energy demand, stabilize energy prices, improve access to
energy particularly for the world’s poorest, combat climate change and increase energy security.
At the same time, it will contribute to economic growth and job creation. To meet these goals,
IRENA must become a centre of excellence facilitating renewable energy technology transfer
and providing experience for practical applications and policies. Its focus should be on the
requirements of renewable energy23. It should act as a facilitator and catalyst, supporting various

19
http://www.irena.org/menu/index.aspx?mnu=cat&PriMenuID=13&CatID=30 (Last Accessed on 15/10/2018)
20
Ibid.
21
http://www.wcre.de/index.php/irena-mainmenu-84 (Last Accessed on 10/10/2018)
22
http://www.oilvoice.com/Description/International-Renewable-Energy-Agency-IRENA/39478a8e.aspx (Last
Accessed on 19/10/2018)
23
http://www.treehugger.com/corporate-responsibility/new-acronym-alert-irena-the-international-renewable-energy-
agency.html (Last Accessed on 19/09/2018)
16 | P a g e
programmes and assisting national governments as well as the private sector. Its role should be to
offer support on all issues relating to renewable energy, helping countries to benefit from the
transfer of knowledge and technology.

Rationale for IRENA:

One of the major reasons for the foundation of the IAEA in the 1950s was the desire to exploit
the opportunities offered by a new energy source. The foundation of the IEA, in contrast, was
triggered by the perception of a major risk – that of shortages in fossil fuel. Both institutions
have served their purpose successfully. Today, the situation is to some extent similar. Once
again, the risks and opportunities on the global energy market are high. Renewable energy offers
a unique opportunity to provide the world with cheap, reliable and clean energy for the future. At
the same time, the economic risks connected with the current energy supply are comparable to
those of the 1970s. Indeed, they are exacerbated today by major environmental risks and dangers
to society. To meet these challenges we need an international agency for renewable energy.
IRENA will act as a driver for renewable energy on an international level. Its role will be to
promote political processes that give due consideration to renewable energy. There is an urgent
need for renewable energy to play a stronger part in international political processes – whether
they are to do with trade, investment, environment, energy or other issues. IRENA, as an
independent international institution, will ensure that the activities of other bodies do not form a
barrier to action in the area of renewable energy. Its aim will be to create momentum for
renewable energy on an international level. IRENA is particularly necessary as renewable
energy lags behind other energy sources in all areas. IRENA will constitute an independent
driving force in the political process with the goal of creating a level playing field for the
development of renewable energy. There are two reasons why this is needed. First, political
structures often put renewable energy at a disadvantage compared to other energy sources.
Second, current market requirements and structures impede the spread of renewable energy.
Renewable energy requires different technology, power and service structures. The costs of these
must be calculated differently. By comparison, fossil and nuclear energy currently have clear
market advantages, including fully developed technology, established industries and market
structures, powerful companies and a history of high subsidies over a number of decades and
well into the future.

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Areas of focus:

By early 2010, policy targets for renewable energy at the national level existed in at least 85
countries worldwide, including all 27 European Union member states 24. Many national targets
are for shares of electricity production, typically 5–30 percent, but range from 2 percent to 90
percent. Other targets are for shares of total primary or final energy supply, specific installed
capacities of various technologies, or total amounts of energy production from renewables,
including heat. Targets also exist for biofuels in many countries.

An increasing number of developing countries have targets and as a group now account for
nearly half the countries worldwide with targets. The Renewables 2007 Global Status Report
counted 22 developing countries with targets, and this figure expanded to 45 countries by early
201025. Developing-country plans also reflect increasing ambition in targeted amounts. China
aims for 15 percent of final energy consumption from renewables by 2020, even as total energy
demand continues to grow at nearly double- digit annual rates 26. (China already met its 2010
renewables target for 10 percent of primary energy two years early, in 2008.) In the country’s
most recent draft development plan targets 300 GW of hydro, 150 GW of wind, 30 GW of
biomass, and 20 GW of solar PV by 2020.

City and Local Government Policies :

City and local governments around the world continue to enact policies to reduce greenhouse gas
emissions and promote renewable energy. Their motives are multi-faceted, including climate
protection, improved air quality, energy security, and sustainable local development. And these
governments can play multiple roles: as decision-makers, planning authorities, managers of
municipal infrastructure, and role models for citizens and businesses.

A type of regulatory policy emerging in recent years is incorporation of renewable energy in

building codes or permitting. Some policies mandate solar hot water in all new construction
above a certain size threshold. Other types of mandates are for design reviews prior to
construction that reveal the opportunities for integrating solar into building designs, or for
building designs to include “stub-outs” or other features that permit easy future installation of
renewables. Incorporation of renewable energy into municipal infrastructure and operations takes

24
http://ieeexplore.ieee.org/abstract/document/6143304/?reload=true (Last Accessed on 12/10/2018)
25
http://www.ren21.net/status-of-renewables/global-status-report/ (Last Accessed on 10/10/2018)
26
Ibid.
18 | P a g e
many forms. Some cities have decided to purchase green power for municipal buildings and
operations. Others are purchasing biofuels for municipal fleet vehicles and/or public transit
vehicles. Associated with these biofuels purchases may be investment in alternative fuel vehicles
that are able to use richer mixtures of biofuels than conventional vehicles. Many cities also invest
in renewable energy installations for municipal buildings, schools, hospitals, recreation facilities,
and other public facilities. Cities with community- or district-scale heating systems may also
invest in renewable heating infrastructure, for example biomass cogeneration plants.

Rural renewable energy:

Renewable energy has an important role in providing modern energy access to the billions of
people that continue to depend on more traditional sources of energy27. Some 1.5 billion people
worldwide still lack access to electricity and approximately 2.6 billion are reliant on wood,
straw, charcoal, or dung for cooking their daily meals. Many heat their food on open fires that
are very inefficient in providing heat; more than one-third of the world’s people are cooking
almost as they were hundreds or even thousands of years ago. For lighting, households without
electricity generally rely on kerosene lamps that are very poor in transforming energy into light.
Communications is limited to radios powered by expensive dry cell batteries.

In many rural areas of developing countries, connections to electric grids may take decades or
may be economically prohibitive. Today, there are good alternatives to grid electricity and
carbon-based fuels that do not have to wait for the expansion of grid electricity systems. These
include a wide array of new and renewable energy systems that can provide for both specific end
uses and general rural energy services. Thus, there is a possibility to speed up the transition to
modern energy services through the acceleration of off-grid renewable energy systems.

INDIAN POSITION REGARDING RENEWABLE ENERGY

The key legislation which guides the development of renewable energy in India is the Electricity
Act, 200328.

27
https://sapiens.revues.org/823 (Last Accessed on 25/09/2018)
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The Electricity Act, 2003:
In 2003, the Parliament enacted The Electricity Act, 2003 (hereinafter “Act/2003 Act”) which
was enacted to consolidate the laws relating to generation, transmission, distribution, trading and
use of electricity. The overall objective of the 2003 Act is the development of the electricity
industry and promotion of competition. A very significant feature of the 2003 Act is that the Act
recognizes the significance of promoting renewable sources of energy 29. There are provisions in
the 2003 Act which mandate Appropriate Commissions and Governments to take necessary steps
to ensure that renewable sources of energy are promoted in an efficient manner and that there is a
constant augmentation of renewable sources of energy to meet our present and future power
needs.
Section 3 of the 2003 Act, Empowers the Central Government to prepare and publish from time
to time, the National Electricity Policy and Tariff Policy for the development of power system
based on optimal utilization of resources such as coal, natural gas and other renewable sources of
energy30. This section casts an obligation upon the Central Government to prepare policies which
would ensure that there is an optimal utilization of resources including renewable sources.
Further, Section 4 of the 2003 Act authorizes the Central Government to prepare and notify a
national policy permitting stand alone systems (including those based on renewable sources of
energy and other non conventional sources of energy) for rural areas in India31.
Section 61 of the 2003 Act provides that whilst determining tariff, the Appropriate Commission
shall take into consideration the promotion of cogeneration and generation of electricity from
renewable sources32. This clearly indicates that the 2003 Act provides the Appropriate
Commissions with the power to promote generation of renewable sources of energy by way of
tariff determination.

28
http://www.teriin.org/projects/nfa/pdf/working-paper-14-Governance-of-renewable-energy-in-India-Issues-
challenges.pdf (Last Accessed on 25/09/2018)
29
Ibid.
30
Relevant part of section 3 reads as follows: National Electricity Policy and Plan- (1) The Central Government
shall, from time to time, prepare the national electricity policy and tariff policy, in consultation with the State
Governments and the Authority for development of the power system based on optimal utilisation of resources such
as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy.
31
Relevant portion of section 4 reads as follows: National policy on stand-alone systems for rural areas and
Nonconventional energy systems- (4) The Central Government shall, after consultation with the State
Governments, prepare and notify a national policy, permitting stand alone systems (including those based on
renewable sources of energy and non-conventional sources of energy) for rural areas.
32
Relevant part of Section 61 reads as below: Tariff Regulations- The Appropriate Commission shall, subject to
the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be
guided by the following, namely: (h) the promotion of co-generation and generation of electricity from renewable
sources of energy.
20 | P a g e
Further, an obligation is cast on the State Electricity Regulatory Commissions under section 86
of the 2003 Act to promote cogeneration and generation of electricity from renewable sources of
energy by providing suitable measures for connectivity with the grid and sale of electricity to any
person33. This section also authorizes the State Commissions to specify a percentage of the total
consumption of electricity in the area of a distribution license which such distribution licensee
needs to procure from renewable sources.
Apart from the above-mentioned provisions of the 2003 Act, there are policies which have been
framed by the Government of India which incentivize the use of renewable energy. For instance,
the Government of India has notified the National Electricity Policy34 (hereinafter “NEP”) which
stresses the need for the promotion of non-conventional energy sources. The Central
Government has also notified the National Tariff Policy35 (hereinafter “NTP”) which provides
that “Appropriate Commission shall fix a minimum percentage for purchase of energy from non-
conventional sources taking into account availability of such resources in the region and its
impact on retail tariffs…”
The NTP also provides that procurement of power (through nonconventional sources) by
distribution companies shall be done at preferential tariffs to be determined by the Appropriate
Commissions.
From the above provisions it is amply clear that renewable energy as a source of energy is being
promoted by appropriate legislative mechanisms and that steps are being taken to ensure that
there isn’t overdependence on conventional and exhaustible sources of energy36.

Renewable Energy Agencies:

There are multiple agencies involved in the renewable energy sector in India-
 Central Level:
At the central level, the Ministry of New and Renewable Energy (MNRE) is the nodal
ministry of the Government of India (GoI) for all matters relating to new and renewable
energy. The broad aim of the ministry is to develop and deploy new and renewable
33
Relevant part of Section 86 reads as below: Functions of State Commission- The State Commission shall
discharge the following functions, namely:- (e) promote cogeneration and generation of electricity from renewable
sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person,
and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in
the area of a distribution license.
34
Vide Ministry of Power Notification No. 23/40/2004- R&R (Vol-II) dated 12.02.2005
35
Vide Ministry of Power Notification No.23/2/2005- R&R (Vol. III) dated 06.01.2006
36
Supra note 28.
21 | P a g e
 energy for supplementing the energy requirements of the country. MNRE also conducts
resource assessments for renewable energy and supports R&D in renewable energy
technologies. There are specialized technical institutions set up under MNRE such as the
Solar Energy Centre, C-WET, and Sardar Swaran Singh National Institute of Renewable
Energy (SSS-NIRE), which serve as technical focal institutes for solar, wind, and bio-
energy, respectively.

 State Level:
At the state level, there are nodal agencies and departments which operate under the
purview of the respective state governments for the effective implementation of all
renewable energy and cogeneration schemes. These agencies promote renewable energy
deployment at the local level by channeling central-level subsidies, implementing
demonstration projects, and providing assistance to interested parties. Many of the state
agencies are also designated agencies for the implementation of the Energy Conservation
Act, 2001. The MNRE provides grants to these agencies for their recurring and non-
recurring expenditure. Financial assistance to renewable energy projects is provided
through the Indian Renewable Energy Development Agency (IREDA) — the financial
arm of the MNRE — which provides loans and also channels funds and other initiatives
to promote renewable energy. IREDA is registered as a non-banking financial company
and arranges its resources through market borrowing and lines of credit from bilateral and
multilateral lending agencies.

In addition, there are a number of government institutions whose mandate encompasses the
renewable energy sector. For example, the Ministry of Power (MoP) is responsible for the
national electricity policy and national tariff policy, both of which play a key role in promoting
procurement of renewable energy-based power. The Ministry of Environment and Forests
(MoEF) is responsible for providing environmental clearances for renewable energy projects.
Engagement with the International Renewable Energy Agency (IRENA):
India is one of the Founder Member of the International Renewable Energy Agency (IRENA)
which is an intergovernmental organization that supports countries in their transition to a
sustainable energy future, and serves as the principal platform for international cooperation, a
center of excellence, and a repository of policy, technology, resource and financial knowledge on

22 | P a g e
renewable energy37. IRENA promotes the widespread adoption and sustainable use of all forms
of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind
energy in the pursuit of sustainable development, energy access, energy security and low-carbon
economic growth and prosperity38.
With a mandate from countries around the world, IRENA encourages governments to adopt
enabling policies for renewable energy investments, provides practical tools and policy advice to
accelerate renewable energy deployment, and facilitates knowledge sharing and technology
transfer to provide clean, sustainable energy for the world’s growing population.
India served as a Member of the IRENA Council and also Chaired the IRENA Council Meetings
during 2015 which is accountable to the Assembly and facilitates consultations and cooperation
among Members and considers the draft work programme, draft budget and annual report.
IRENA is actively associated with MNRE and provides policy suggestions for scaling up of
Renewable Energy target of 175 GW sets by India. IRENA is also preparing “REmap 2030 –
India Country Report”39. Mr Sakari Oksanen, Deputy Director-General, IRENA, Abu Dhabi and
Mr Nicholas Wagner, IITC, Bonn Centre, IRENA presented draft report in November, 2016
during the meeting with all stakeholders. MNRE is collaborating with IRENA on Global Atlas
for Renewable Energy. IRENA has also helped in establishing International Solar Alliance
(ISA)40.

CURRENT SCENARIO OF INDIAN RENEWABLE ENERGY IN

INDIA
The Indian renewable energy sector is the fourth most attractive renewable energy market in the
world as per the Renewable Energy Attractiveness Index 2018. India’s installed renewable

37
http://pib.nic.in/newsite/PrintRelease.aspx?relid=118146 (Last Accessed on 25/09/2018)
38
Ibid.
39
http://mnre.gov.in/file-manager/annual-report/2016-2017/EN/pdf/11.pdf (Last Accessed on 20/09/2018)
40
Ibid.
23 | P a g e
power (grid interactive) generation capacity (including hydropower) increased from 42.4
gigawatts (GW) in FY07 to 116.82 GW in July 2018, which is 33.72 per cent of the total
installed capacity. Power generation from renewable energy sources in India reached 101.84
billion units in FY18 and 46.28 billion units in April-July 2018.
As of August 2018, India ranks fifth in terms of cumulative installed solar capacity and crossed
25 GW in installed solar capacity. India added record 11,788 MW of renewable energy capacity
in 2017-18 and 1,832.26 MW (grid interactive and off-grid) in April-July 2018. Overall, India is
expected to add up to 8.5 GW of renewable energy capacity in 2018-19. Large hydro projects
form the largest source of renewable energy. Around 1,739.14 MW of wind power capacity was
added in 2017-18.
The Ministry of New and Renewable Energy, Government of India, has formulated an action
plan to achieve a total capacity of 60 GW from hydro power and 175 GW from other RES by
March, 2022, which includes 100 GW of Solar power, 60 GW from wind power, 10 GW from
biomass power and 5 GW from small hydro power. This has been proving to be the major thrust
for the sector in India as the market players have sufficient incentives to move to clean source.
As of June 2018, Government of India is aiming to achieve 225 GW of renewable energy
capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. Under Union
Budget 2018-19, Rs 3,762 crore (US$ 581.09 million) has been allocated for grid-interactive
renewable energy schemes and projects.
As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by
2040, renewable energy is set to play an important role. By 2030, renewable sources are
expected to help meet 40 per cent of India’s power needs. New investments in clean energy in
the country reached US$ 11 billion in 2017. In the first half of 2018, investments in clean energy
increased 22 per cent year-on-year. The non-conventional energy sector has received a total FDI
equity inflow of US$ 6.84 billion between April 2000 and June 2018.

24 | P a g e
 CONCLUSION

From a broader perspective, however, the picture is less bright for renewable energy. Since 1990,
renewable energy production has grown at an average rate of 1.8% per year. This is at the same
level as the increase in the world's primary energy supply. The contribution of solar, wind and
tidal energy remains marginal, accounting for less than 0.9% of renewable energy and just 0.1%
of the world's primary energy supply. Renewable electricity generation, in particular, grew by an
average of only 2.4% per annum worldwide between 1990 and 2005. This is less than the growth
rate of total electricity generation, which was 2.9%. Thus the total share of renewable energy in
global electricity production fell from 19.5% to 17.9% over that period.
There are many reasons why renewable energy has not yet achieved its full potential. They
include a lack of public awareness, market distortions favoring existing energy structures,
political framework conditions contrary to the needs of renewable energy, insufficient technical
or administrative know-how and a significant lack of proper information.
We need to close the gap between the enormous potential represented by renewable energy and
its relatively small current market share. Greater effort is needed, from municipal right up to
international level. An international institutional framework will ensure that all stakeholders in
the area of policy work together to provide transparency and exploit the existing synergies.

25 | P a g e
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26 | P a g e