In a significant move towards sustainable energy goals, the Union Minister for New & Renewable Energy and Power has announced India’s commitment to achieve 500 GW of installed electricity generation capacity from non-fossil sources by 2030. As part of its Nationally Determined Contribution (NDC) to the UNFCCC, India aims for 50% cumulative electric power installed capacity from non-fossil fuel-based resources by the same year.
To bolster renewable energy production, the government has implemented various measures, including waiving Inter State Transmission System (ISTS) charges for solar and wind power projects commissioned by June 30, 2025, and initiating graded ISTS charges thereafter. Additionally, schemes like Solar Parks, Ultra Mega Solar Power Projects, and the National Green Hydrogen Mission have been launched.
Furthermore, the government is actively promoting hydro power generation, declaring Large Hydro Power projects as a renewable energy source, introducing Hydro Purchase Obligation (HPO), and rationalizing tariff measures. Noteworthy is the waiver of ISTS charges extended to Pumped Storage Projects, with specific conditions, and the recent publication of guidelines to promote their development. The Central Electricity Authority has also revised guidelines to expedite the concurrence process for certain categories of Pumped Storage Projects.
Currently, four Pumped Storage Projects with a total capacity of 2780 MW are under construction, while two projects with 2350 MW are concurred by the Central Electricity Authority, awaiting construction initiation. These initiatives align with the government’s commitment to making India a hub for green energy production and export, as articulated in the National Green Hydrogen Mission launched recently.
