ABSTRACT
India stands at the crossroads of economic growth and environmental preservation. Renewable energy is central to its strategy for sustainable development and global climate commitments. India is the third-largest consumer of electricity in the world. India’s peak demand for electricity reached a record high of 223 gigawatts (GW) in June 2023. The country’s consumption is projected to continue rising. India is also the third-largest consumer of energy in the world. However, India ranks 104th in per capita electricity consumption.
| Country | Final consumption (TWh) |
| China | 7214 |
| United states | 4272 |
| India | 1403 |
| Characteristic | Consumption in terawatt-hours |
|---|---|
| China | 8,392 |
| United States | 4,065 |
| India | 1,407 |
| Russia | 997 |
| Japan | 909 |
| Canada | 594 |
| Brazil | 558 |
| South Korea | 557 |
| Germany | 463 |
| France | 411 |
| Saudi Arabia | 338 |
| Mexico | 324 |
India has set targets to reduce its carbon emissions. In 2021, the country pledged to reach net-zero emissions by 2070. India also aims to reduce its CO2 emission intensity of GDP by 45% by 2030, compared to 2005 levels.
In This, paper we will examines the legal frameworks governing renewable energy in India, identifies regulatory challenges, and explores pathways to overcome them. Its policies such as the National Action Plan Renewable Purchase Obligation (RPO) National Energy Policy (NEP) Green Energy Corridor Scheme Ultra Mega Renewable Energy Parks Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mah Abhiyan (PM-KUSUM) on Climate Change and legislation like the Electricity Act, 2003 Electricity (Amendment) Bill 2018, National Tariff Policy. The study incorporates case laws (T.N. Godavarman Thirumulpad v. Union of India,1997, Goa Foundation v. Union of India ,2014) to contextualize judicial intervention in balancing environmental and developmental priorities. Recommendations include harmonizing policies, enhancing infrastructure, and promoting indigenous technology. This research underscores the need for a robust legal ecosystem to achieve energy security while ensuring sustainability.
KEYWORDS
India power sector, Renewable Energy, Sustainable Development, Legal Framework, India, Regulatory Challenges, Paris Agreement, Environmental Laws.
INTRODUCTION
India’s burgeoning economy and growing population have led to a significant rise in energy demand. However, its dependence on fossil fuels upon 50% exacerbates environmental challenges, such as air pollution and climate change for the developing countries like India. But India is taking all steps necessary to achieve energy transition. India has set a target to achieve 50 percent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its GDP by 45 percent by 2030, based on 2005 levels. India has launched several initiatives such as National Solar Mission and National Mission for Enhanced Energy Efficiency to achieve its goal of increasing non-fossil fuel-based capacity and promoting energy efficiency. Additionally, India is investing in new technologies, such as electric vehicles, to reduce its carbon footprint . Renewable energy has emerged as a viable solution, aligning with India’s commitments under the Paris Agreement and its Nationally Determined Contributions (NDCs).
Sustainable development is possible by use of sustainable energy and by ensuring access to affordable, reliable, sustainable, and modern energy for citizens. Sustainable development, as enshrined in Article 48-A of the Indian Constitution, “states that the state is responsible for protecting and improving the environment, and safeguarding the country’s forests and wildlife”. It was added by the 42nd Amendment added this article to the Constitution in 1976 , necessitates an environmentally conscious approach to energy production and consumption. This paper explores the intricate relationship between legal frameworks, renewable energy, and sustainable development in India.
- Coal: The largest source of electricity in India, accounting for 47.89% of installed capacity as of October 31, 2024.
- Hydro: 10.34% of installed capacity as of October 31, 2024.
- Nuclear: 1.80% of installed capacity as of October 31, 2024.
- Oil and gas: 5.59% of installed capacity as of October 31, 2024.
- Solar: 20.27% of installed capacity as of October 31, 2024.
- Wind: 10.50% of installed capacity as of October 31, 2024.
- Bio power: 2.49% of installed capacity as of October 31, 2024.
RESEARCH METHODOLOGY
This research adopts a qualitative approach combining doctrinal and analytical methods:
1. Doctrinal Research: Analysis of statutes, case laws, and constitutional provisions.
2. Secondary Data Analysis: Review of government reports, international treaties, and scholarly articles.
3. Comparative Analysis: Study of renewable energy policies in leading states and international best practices.
REVIEW OF LITERATURE
1. Policy Frameworks: The National Action Plan on Climate Change (NAPCC) outlines India’s renewable energy strategy through missions like the National Solar Mission National, Water Mission, National Mission for a Green India. Literature highlights the need for stronger implementation mechanisms
2. Judicial Interventions: Case laws like T.N. Godavarman Thirumulpad v. Union of India emphasize sustainable development.
3. International Context: India’s commitments under the Paris Agreement influence its domestic policies
Gaps identified include fragmented policies and lack of focus on decentralized energy systems.
METHOD
- Legal Frameworks Governing Renewable Energy in India
- Constitutional Provisions:
- Article 48-A: Protecting and improving the environment.
- This article was not a part of the Constitution of India 1950, and was inserted by the Constitution (Forty-second Amendment) Act, 1976
- Article 48A lays down the directive principle for the protection and improvement of the environment and safeguarding of forests and wildlife. “The State shall endeavour to protect and improve the environment and to safeguard the forests and wildlife of the country.“
- Article 51-A(g): Duty of citizens to safeguard the environment.
Article 51A(g) of the Constitution of India states that every citizen of India has a fundamental duty to:
- Protect and improve the natural environment, including forests, lakes, rivers, and wildlife
- Have compassion for all living creature
- This article was not a part of the Constitution of India 1950, and was inserted by the Constitution (Forty-second Amendment) Act, 1976
Article 51A(g) article is similar to Article 48A, the only difference is it is the fundamental duty of citizens whereas Article 48A is the duty of the state to protect the environment. This Article Also says that we get a pollution-free environment, so it is our duty to protect it and improve its quality.
- Key Legislations:
- Electricity Act, 2003: Promotes renewable energy through Renewable Purchase Obligations (RPOs).
This is a landmark legislation in so far as the regulation and development of India’s electricity sector are concerned. It provides the foundation for various stakeholders, including the central and state electricity regulatory commissions, which would now drive the country’s renewable energy policies forward.
- Provisions for Renewables: The Act provides for the promotion of electricity generation from renewable sources. It also states that the state government should formulate state policies relating to grid connectivity and tariff determination in a manner favourable to renewables.
- Stakeholder Roles: It is stipulated in defined roles for the central government, state governments, and regulatory bodies towards the growth of renewable energy projects. This comes with setting up targets achieved for renewables and ensuring compliance with the same.
- Renewable Purchase Obligations (RPOs): To keep clean energy in vogue, this act has brought in RPOs for distribution companies wherein a certain percentage of their power has to be mandatorily bought from renewable sources.
- Energy Conservation Act, 2001: Encourages energy efficiency.
The Act provides for the efficient use of energy and also prevents its profligate use; it indirectly helps propagate the renewable energy initiative. Here’s how it helps:
- Energy Efficiency: It is implemented through the Bureau of Energy Efficiency, an autonomous body established under the Act. Efficient energy use reduces the overall demand and allows the grid penetration of more renewables.
- Incentives for Renewables: Policies for incentivizing energy efficiency projects are declared in this Act, as well as incentives for Renewable Energy solutions such as Solar Water Heaters and Green Buildings.
- Public Awareness: This act triggers a sense of energy conservation awareness. This cultural change, thus advances wider acceptance and development of renewable technology.
With these, the Energy Conservation Act supplements other renewable energy policies to ensure that energy use is least wasted and efficiency is maximized to usher in a sustainable future. Along with this, the National Action Plan on Climate Change (NAPCC), launched in 2008, outlines India’s strategy for addressing climate change, focusing on promoting renewable energy. It includes eight national missions, such as the National Solar Mission and the National Mission for Enhanced Energy Efficiency, which aim to enhance energy security and promote sustainable development.
All these regimes collectively make a strong environment for the growth and development of renewable energy in India. Their assurances include that the transition to greener sources of energy is orderly, sustainable, and economically viable.
- Central Electricity Regulatory Commission (CERC)
The function of the Central Electricity Regulatory Commission is to regulate the electricity sector in India on issues relating to tariffs and the integration of renewable energy into the grid.
- Tariff Regulation: It is the CERC that shall approve the tariffs for electricity generated from renewable sources. It sets competitive tariffs for the Renewable Energy Sector, hence making it an attractive sector for investors as well as consumers.
- Integration promotion: CERC develops guidelines and frameworks for the integration of renewable energy into the national grid. This includes addressing related technical challenges and smooth grid connectivity of projects pertaining to renewable energy.
- Market development: It promotes electricity markets for renewable energy. This pertains to facilitating trading mechanisms such as Renewable Energy Certificates and power purchase agreements.
- Dispute Resolution: It also serves as a mediator in case of disputes between two stakeholders of the electricity sector. This would carry forward a fair and efficient regulatory environment.
- National Policies:
1.National Solar Mission and National Wind-Solar Hybrid Policy.
A policy adopted in 2018 to promote large-scale wind-solar hybrid power projects. The policy aims to:
- Optimize the use of land and transmission infrastructure
- Reduce the variability of renewable power generation
- Improve grid stability
2.State-specific policies like Gujarat Solar Policy and Tamil Nadu’s Wind Energy Program.
- Gujarat is a leader in renewable energy, particularly in solar and wind power. The state’s Solar Power Policy 2021 offers a conducive environment for solar investments, including land acquisition benefits and exemptions from certain grid charges. Gujarat’s hybrid renewable projects have also garnered attention for combining solar and wind power to ensure consistent energy supply.
- Tamil Nadu Known for its wind energy leadership, Tamil Nadu’s Wind Energy Policy 2012 was a landmark in boosting wind capacity, and the state now has over 9,000 MW of installed wind energy. Tamil Nadu is also rapidly expanding its solar footprint, with the Tamil Nadu Solar Energy Policy 2019, aiming to reach 9,000 MW of solar power by 2023.
2. Regulatory Challenges
- Policy Inconsistencies:
- Lack of alignment between state and central policies.
The national action plan on climate change outlines India’s renewable energy strategy, including mission like national solar mission, whereas every state implements its own renewable energy policies such as solar or wind energy initiatives, often deviating from central guidelines.
- Delays in project approvals.
Renew’s 500 MW solar project in Gujarat faced a 12-month delay, while Adani Green’s 400 MW wind-solar hybrid project in Andhra Pradesh was delayed by 10 months. Tata Power’s 350 MW hybrid project in Karnataka was delayed by 9 months, as per data shared by the research consultancy up to November 2024.
- Infrastructure Deficits:
- Inadequate grid infrastructure for renewable energy integration.
Renewable energy sources like solar and wind power are dependent on weather conditions and fluctuate throughout the day. This can make it difficult to maintain grid stability, which requires a balance between production and consumption. There are technical issues to consider, such as grid compatibility and interconnection standards.
- Financial Constraints:
High upfront costs for renewable projects.
The cost of a 1 megawatt (MW) solar power plant in India is typically between INR 4 and 5 crores, but can range from INR 4.5 to 6 crores. Which is two time more the regular supply of energy.
Limited access to funding and subsidies.
In FY 2023, India also ramped up subsidies for renewable energy, which were INR 14,843 crore (USD 1.8 billion) in FY 2023, an 8% increase over FY 2022. The key measures remain direct budgetary spending through several Central Sector schemes being implemented by the Ministry of New and Renewable Energy, such as the Solar Parks and Ultra Mega Solar Power Projects scheme, Central PSU (popularly known as CPSU) Scheme, PM-KUSUM and rooftop solar program. Most of these schemes were to end by March 2024. However, due to multiple issues, such as land availability, evacuation infrastructure, and supply chain bottlenecks, the government has now extended these schemes till March 2026, with no financial implication since current budgets remain underspent. Other quantified support measures include tax expenditures and price support in the form of accelerated depreciation, waiver of inter-state transmission system charges and credit support through the Indian Renewable Energy Development Agency (IREDA). For comparison, total renewable energy subsidies were only 12% of all fossil fuel subsidies in FY 2023.
- Land Acquisition Issues:
Challenges in acquiring land for solar and wind farms.
The acquisition of land for solar projects is not only about securing space but also dealing with the absence of clear land record and titles, inflated land price in the areas with high potential, and potential local conflicts
- Technological Dependence:
- Reliance on imported technology.
The nation must enhance its local manufacturing capabilities to reduce costs and dependence on imports, particularly in polysilicon and solar module production. An annual USD 30 billion solar equipment import bill and more reliance on China.
3. Judicial Context
- T.N. Godavarman Thirumulpad v. Union of India (1997): Stressed sustainable development principles.
- Vellore Citizens Welfare Forum v. Union of India (1996): Established the precautionary principle.
- Goa Foundation v. Union of India (2014): Emphasized environmental clearances for developmental projects.
SUGGESTIONS
1. Policy Harmonization:
- Align state and central policies for consistency.
- Strengthen Renewable Purchase Obligations (RPOs).
2. Infrastructure Development:
- Expand grid capacity for renewable energy.
- Invest in energy storage technologies.
3. Financial Incentives:
- Increase subsidies and tax benefits.
- Encourage Public-Private Partnerships (PPPs).
4. Promote Indigenous R&D:
- Boost domestic manufacturing under the “Make in India” initiative.
- Establish renewable energy research hubs.
5. Streamlined Legal Processes:
- Simplify environmental clearance mechanisms.
- Ensure strict compliance with renewable energy regulations.
CONCLUSION
Renewable energy is pivotal for India’s sustainable development and climate goals. While the legal frameworks provide a foundation, regulatory challenges such as policy inconsistencies, financial barriers, and infrastructural deficits hinder progress. By addressing these issues through harmonized policies, infrastructure investment, and technological innovation, India can achieve energy security while adhering to its environmental commitments. A robust legal and regulatory framework is indispensable for realizing this vision.