Open Access Research Article
“RENEWABLE ENERGY POLICY AND ITS LEGAL FRAMEWORK”
Published Paper
Article Details
“RENEWABLE ENERGY POLICY AND ITS
LEGAL FRAMEWORK”
AUTHORED BY - MR. HARSHIT MOHAN
Assistant Professor
School of Law and Legal
Affairs,
Noida International
University, Gautam Budh Nagar.
CO-AUTHOR - MS.
KOUSHIKI MISHRA
Law student, LL.B. Ist
year,
School of Law and Legal
Affairs,
Noida International
University, Gautam Budh Nagar.
·
The
research paper is about the need of using renewable energy and how government
is working on it for the past decades.
·
What
are the changes we can see, challenges and opportunities in the area.
·
It
also covers the financial aid, incentives, subsidies which are given by
government.
·
It
talks about the international collaboration and its importance.
·
It
finally covers about the the comparative analysis of India’s development plan
with the development plan of other nations.
1.
Abstract
All
over the world climate change has become the burning topic on international as
well as domestic level due to global warming and uneven climate patterns and their
consequences which are been faced by people all over the world wide. According
to International Renewable Energy Agency (IRENA) we are all not on the track
for a healthy environment and our only option is to put renewable energy at the
centre of the solution which are most scientific based pathway. India is
contributing to the agenda in however way they can. India’s legal framework for
renewable resources is changing over the past decade with everyday changing
needs, advancement of technology and commitments made on international
platforms whereas the recent policies of India include solar and wind energy
mission, tariff policy and policies by individual states for regulating
promotion of renewable resources and how these policies are contributing in the
cause as whole union and region wise. Government has taken big steps and given
financial incentives and subsidies for the development and promotion for
renewable resources by giving 100% of tax waiver of profits for solar power
generating companies for ten assessment years from the initial assessment years
and permitting FDI up to 100% under the automatic route and Rs.24000 crore
outplay provided by government of India; more incentives and exceptions were
given to promote the renewable resources. India faced challenges while
promoting and failures of policies applied by them during these decades.
Intellectual property protection and purchase power agreement played role in
incentivizing private sector investment and involvement of technological
advancements were huge part of it.
Comparing polices and approach of other countries who are developed in
technology and other related concept.
Keywords:
Renewable resource, development, technological advancement, investment.
2.
INTRODUCTION
Renewable
energy is Key to addressing the climate crisis. Energy from renewable natural
resources is energy that is produced more quickly than it is used. Renewable
energy sources are in large amount available to human being. Whereas, Fossils
fuels, coal, gas are non-renewable resources which require hundreds of millions
of years to shape. In addition to cost, generating renewable energy is
beneficial because of lower emissions required than burning fossil fuels, and
also results in three times more jobs.[1]Global
warming and climate change is the most upcoming and burning topic due to the
consequences faced by world because of the actions of human beings which is
represented by scientists through a strong census that says that between 90%
and 100% humans are the reason of the global warming with most of the study
finding 97% to be more accurate (fig.2&fig.1) respectively.
(Figure1) source: skepticalscience.com
(Figure2)
source: skepticalscience.com
The
study has shown that the concentration of carbon dioxide in the atmosphere has
risen from hovering approx. 280 parts per million (ppm) in pre-industrial time,
to 413 ppm as of early 2020. This concentration of carbon dioxide is
unprecedented in recorded history. Scientists have reported that we have to
return to a safe concentration of 350ppm by 2100 with the aim to stabilize
global warming. (figure3)[3]
The
International Energy Agency (IRENA) being leading international
intergovernmental organization for energy transformation that is in the service
of providing state of the art data and analyses on technology, policy,
innovation, investment and finance.[4]IRENA
manages the worldwide adoption and use of all forms of sustainable sources for
renewable energy, which includes geothermal, hydropower, bioenergy, geothermal,
ocean, hydropower, wind and solar energy in order to promote sustainable
development, energy security and energy access for economic, social resilience,
prosperity and a future that is climate-proof. IRENA’s membership comprises 168
countries and the EU.
IRENA
has also said that “energy transition is
not at all on track for a healthy environment and the aftermath of the COVID-19
pandemic and the ripple effects of the Ukraine crisis have further compounded
the challenges facing the transition making every step more important and
needed because of any change in the fraction of a degree in global temperature
will change significant and out of control consequences on the environment
effecting natural systems, human societies and economies and our only option is to put renewable
energy at the centre of the solution which is most scientific based pathway.”
[5]
Their
proposed methods for reducing global warming include lowering carbon dioxide
(CO2) emissions by about 37 gigatonnes (Gt) from 2022 levels, reaching net-zero
emissions in the energy sector by 2050, and deploying about 1000 GW of
renewable energy each year in order to maintain the 1.5C trajectory.
(Figure 4) source: irena.org
According
to IRENA's 1.5C scenario, by 2050, the proportion of renewable energy in the
world's energy mix would rise from 16% in 2020 to 77%. By that same year,
electricity would take the lead as the primary energy carrier, making up over
50% of all final energy consumption. By that same year, 94% of hydrogen would
come from renewable sources. To accelerate global progress, policymakers must
strike a balance between reactive measures and proactive energy transition
strategies that will support a more resilient, inclusive, and climate-safe
system.[6]
Every nation is making every effort to create policies for energy governance, a
highly difficult topic for which there is no ideal model. Around the world,
both direct and indirect measures have been implemented.
A
few legislative framework initiatives and policies can be taken into
consideration that were like taking a step in the right direction, such as the
enactment and passage of specific laws on renewable resources that contain
series for the introduction of tariff support for electricity generation from
renewable resources. At the national level, decisions are always made about
what is needed and what measures are taken by the policy makers. Furthermore,
subsidies and incentives were offered, which have been shown to be effective
and beneficial. Treaties on international investment and legally enforceable
agreements guaranteed energy access to everyone who made cross-border political
pledges. The SDGs, which were adopted by the UN, are important for attaining
clean, affordable energy for all legislative systems.
All
things considered the preference and reliance on renewable resources in the
twenty-first century is an unavoidable global, regional, and home necessity.
3.
RENEWABLE RESOURCES IN INDIA AND THEIR APPROACH
3.1)
What
is India’s present legal framework for renewable energy, and how has it
progressed over the last decade?
With
the most populated country in the world India demand for the energy usage has
been increased and the best options for the economy and environment have been
taken into consideration. From the start
when India started gaining its independence it heavily relied on coal to meets
its demands for energy but coal and fossils were not an efficient way to move further
with development and India was committed to move to more long term and
sustainable resources for their purposes. The starting was done with
hydro-power making it India’s energy platform. Over the years many policies,
initiatives, investments have promoted the hydro-power development leading
India to 5th position in the world in respect of hydropower usage. “Bhabha
Atomic Research centre (BARC)” was established in 1950s for India’s
long term independence in energy. Wind energy was started in 1960s when the
National Aeronautical Laboratory (NAL). After many years of extensive
scientific research and technology advancement has brought us to the stage
where India is the only nation with
domestic development, demonstration and deployment of nuclear reactors for electricity generation,
4th largest wind power capacity in the world, large scale usage in
solar energy spearheading International solar alliance (ISA) which is a
determined, an action-orientated, with a combined platform for increasing
deployment of solar energy technologies which aims towards using solar energy
to reduce fossil fuel dependency and creating a healthy planet, 800 biomass
power and bagasse, non-bagasse co-generation projects has inducted in the
country, power surplus country with a total installation of capacity of over 4
lakh MW.
Keeping
sustainable development goals in the front of mind, India’s power generation
mix is quickly changing towards a larger amount of renewable energy.
In
present scenario, India is the world’s 3rd largest producer of RE
because of its installed capacity of 40% till 2021 by achieving one of its
Paris 2030 Nationally Determined Contributions (NDC) commitment 9 yrs. in
advance. The country surpassed 100GW installed capacity landmark on august
2021. India stands 4th position in the world in terms of overall
installed renewable energy capacity. By December 2021 RE capacity stood at
104.88 GW and till February 2023 it stands more than 174.53 GW. (Given and
explained in table 1 and figure 4)[7]
|
|
|||||
|
Solar
|
Wind
|
Small hydro
|
Large hydro
|
Biopower
|
Nuclear
|
|
48.55 GW
|
40.03 GW
|
4.83 GW
|
46.51 GW
|
10.62 GW
|
6.78 GW”
|
(Table1) source: pib.gov.in
(Figure5) source: pib.gov.in
The
key policies and regulations for making renewable resources a successful plan
by Indian government includes:
·
National
Action Plan on Climate Change (NAPCC): NAPCC was launched on 30th
June 2008 by government of India to outline a national scheme for aiming
towards the country which can adapt change in climate and enhances the
ecological sustainability of India’s development path stressing that
maintaining a high growth rate is crucial to increase living standards and
mitigating the negative effects of climate change. Eight national missions
addressing climate change are included in this action plan: the solar mission,
the mission for improved energy efficiency, the missions for sustainable
habitat, water mission, the Himalayan eco-system mission, green-India mission,
the missions for sustainable agriculture and the mission of strategic knowledge
on climate change.
·
National
Solar Mission (NSM): National solar mission also known as The
Jawaharlal Nehru national solar mission launched In January 2010 was an
initiative of the government of India and state government for solar power energy.
This mission has three phases; phase 1 (2010-2013), phase 2 (2013-17), phase 3
(2017-2022) aiming for the solar technology penetration in the country on both
centralized as well as decentralized level. It has created policy for its
deployment across the country. Each phase has different goals introduced by
policies to achieve it. Phase 1 has the target for grid-connected PV 1000 MW,
off-grid solar PV applications 200 MW. Phase 2 has the cumulative target for
grid-connected solar PV 4000-10000 MW, off grid solar PV applications 1000MW,
scheme for at least 25 solar parks and ultra-mega solar power projects to
target 40 GW solar PV13th plan. Phase 3 cumulative targets for grid-connected
solar PV 100000 MW, off-grid solar PV applications 2000 MW. Every policy is for
evaluation of progress and targets based on emerging cost and technology.
·
Renewable
Purchase Obligation (RPO): The state agency for renewable energy
research and technology for RPO’s and renewable energy certificates in Kerala
which maintains electricity distribution licensees which should be purchased or
produce a minimum specified quantity requirement from RE sources. RPO is a
regulatory mechanism for the purpose of promoting the growth of RE sources and
contribute towards environment sustainability. The total of 3% RPO in 2010 was
notifies by Kerala where 2.75% is to be met from non-solar sources and 0.25%
from solar energy. Then further RPO was increased by 10% of 3% every year. RPO
must fulfil their renewable energy obligations by purchasing renewable energy
certificates or purchasing themselves typically applicable to power
distribution companies, open-access or other entities.
·
Tariff
policy: The
government has announced plans and policy for “green tariff policy” for
increasing the consumption of renewable resources. Under this power distribution companies will supply more power
which is generated by renewable resources at a tariff that is lesser than of
conventional energy. It’s for the
increase in energy beyond the RPO compulsion.
·
The
Electricity Act, 2003: the electricity act principally governs
the electricity sector of India and provides the structure for the generation,
transmission, distribution, trading and use of electricity. It deals about
national policy and plan and needs to be published in newspaper once in 5
years.[8]
·
The
National Portal of rooftop solar: The Indian government
launched this for the encouragement in adoption of solar energy. Online
platforms were created for individuals and companies who are interested in
using solar power. On those online platforms eligibility for the solar
subsidies can also be checked.
·
Recent
plans: There are recent plans on which government is focusing
for the betterment.
Under the environment (protection) act, the "PM Programme for Restoration, Awareness, Nourishment and
Improvement of Mother Earth" green credit programme encourages
behavioural change to support alternative fertilisers and the balanced
application of chemical fertilisers.
In order to support one crore farmers in adopting natural farming during
the following 3 years, 10,000 “Bhartiya Prakritik Kheti Bio-Input Resource
Centres”[9]
will be established. This would provide a nationwide distributed network for
the production of pesticides and micro-fertilizers.
"mangrove initiative
for tangible income and shoreline habitats"
MISHTI, if possible, through collaboration between MGNREGS, CAMPA fund, and
other sources, for mangrove plantations along the coast and on salt pan areas.
Amrit Dharohar is
a plan to promote the best possible use of wetlands and improve chances for
ecotourism, carbon storage, biodiversity, and generating money for nearby
communities.
Through PPP mode and viability gap funding, coastal shipping will be
pushed as the more affordable and energy-efficient mode of transportation for
both passengers and freight. providing sufficient funding for the Central
Government to scrap its outdated cars and to assist the states in replacing
their outdated ambulances and cars.
Ultra Mega Renewable Energy
Parks are being established to give land and transmission to
renewable energy developers on a plug-and-play basis.
Launch of Programmes:
Phase II of the 12000 MW CPSU Scheme, Phase II of the Solar Rooftop Programme.
“PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan)” the
construction of new substation capacity and transmission line layouts as part
of the Green Energy Corridor Scheme to evacuate renewable energy.
Transmission Plan for Including “500 GW of Renewable Energy by 2030”.
The setting up of a project development cell aimed at drawing in investments
and standardising the bidding process for tariff-based competitive bidding on
grid-connected solar PV and wind projects.
In order to guarantee that distribution licence holders pay RE
generators on time, the government has issued directives stating that power
will be distributed against letters of
credit (LC) or advance payment.
Green Term Ahead Market
Launch to enable sale of renewable energy power through
exchanges. (changes shown in figure 6)
(Figure 6)[10]
3.2)
What
are the financial incentives and subsidies given by the government which
impacting the development, adoption and promotion of renewable energy
technologies?
The Indian government has taken various major steps for the expansion
and advertisements of clean energy which in respond will accelerate economy
transition to one powered by green energy. The kinds of incentives that can
accelerate renewable energy deployment can be categorized into four types which
are research and development, fiscal and tax, market development, grid
connection and tariff incentives. R&D incentives are designed to reduce the
financial strain on businesses investing in research and development can also
be weighted tax deductions. Fiscal and tax incentives are provided so that
people can make certain decisions which it will make more preferable. Market
development policies is provided by government when they want people to enter
in certain market and develop it. Opportunities are provided so many people
come in certain market and use it for its development. Grid connection and
tariff incentives are those where government provide subsidy on the basis of
power, voltage of the source of energy.
in budget 2023 the union aimed at promoting clean and sustainable energy
by giving the following policies and incentives:
·
The ministry of power has formulated a scheme
on viability gap funding for development of battery energy storage systems with
capacity of 4000 MWH.
·
Import of capital goods and machinery
required for manufacture of lithium-ion cells for batteries used in electric
vehicles are exempted from custom duties.
·
The funding of Rs.19700 crore for the “green
hydrogen mission” to smooth the path for transition to low carbon
intensity, lessen reliance on fossil fuel imports. By 2030, an annual
production of 5 MMT is the target.
·
An amount of Rs. 35,000 crore has been set
aside for capital investments that are prioritised in the direction of energy
security, net zero goals, and energy transition.
·
A total of Rs. 20,700 crore, including Rs.
8,300 crore in central funding, will be invested to upgrade the interstate grid
and evacuation transmission system. 13 GW of renewable energy from Ladakh
integrated.[11]
·
500 new “waste-to-wealth”
plants were established under new developing organic bio-agro resources “dhan
scheme” with total of Rs.10000 crore.
·
Permitting of foreign direct investment up to
100% under automatic route for renewable energy projects was provided.
·
Waiver of Interstate Transmission System fees
for sale of solar and wind power projects between states expected to authorize
by 30th June 2025.
·
The installation of solar panels across
residential, commercial and industrial sectors has been provides various tax
benefits for the promotion of Renewable resources.[12]
·
Extending direct and indirect incentives by
providing safeguards on sales tax, inclusions of anti-dumping duties,
exemptions to customs duties.
·
A total of “ten year” income tax exemption on all projects earnings to
developers in addition for the promise of recovery of 40% of cost in the
initial (1st) year through accelerated depreciation.
·
Under section 80-IA of the income tax
act,1961 solar power generating companies are granted a tax waiver on 100% of
profits for ten assessment years from the initial assessment year in addition
to cover sales tax, excise tax and customs duty.
·
Up to 100% financial support to government
and non-profit research organizations and up to 50-70% to industry, start-ups,
private institutes, entrepreneurs and manufacturing units were provides.
·
Subsidies introduced for the promotion of
solar energy which is based on system’s capacity. The amount of subsidy you
receive depends on the capacity of your solar power system. For systems with a
capacity of up to 3 KW were provided a subsidy of Rs.14588 per KW, if the
system capacity falls between 3KW and 10 KW the amount received is Rs.14588 per
KW for the first 3 KW and thereafter, Rs.7294 per KW and the system above 10 KW
a fixed subsidy of Rs.94822 per KW is provided.[13]
·
Planning for the reduction in total projected
carbon emission by 1 Bn tonnes by 2030, carbon intensity of the nation’s economy
lower than 45% by the termination of the decade, and achieve net-zero carbon
emission by 2070.
·
Solar city per state-approved and approved
setting up 57 solar parks of 39.28 GW across the nation. The government is also
giving a push to floating PV projects.
·
Aatma-Nirbhar-bharat is
to PLI scheme in solar PV manufacturing with financial outlays of INR 24000 Cr
introduced.[14]
(Figure 7) [15]
3.3)
What
are the key “challenges and opportunities” by India’s legislative framework for
grid integration in renewable energy sources?
India
has a large usage of energy which needs to be fulfilled and to maintain the
environment precautions need to be taken. Renewable energy is the best way to
go through the need and usage with the environment friendly ways. But still
there are challenges that are faced while using renewable resources. Challenges
can be categorized in major three principles. How to expand reliable energy
access and usage while maintaining affordability for consumers and financial
stability for the DISCOMs. How to add increasing shares of renewable energy
with security and reliability. How to reduce emissions for the achievement of
social and environmental objectives. The
challenges faced to promote and use renewable energy are as follows:
·
Variability and unpredictability of
renewable resources: Forecasting is that 62% of global
electricity will be generated by renewable sources by 2050 which will be an
increment from 27% which will increase the challenge for the grid operators in
planning and managing power flows properly and avoid imbalances.
·
Cost of production:
The cost associated with building and installing facilities like solar or wind
farms is too expensive and the budget given for green energy is not up to that
par.
·
Grid modernization:
The lines and the sources used in distribution of energy need to be changed as
they have gotten older and distributing over long distances cause heat damaging
the lines further. Changing the lines is costly.
·
Energy transmission: In
the past the power transmission infrastructure was built with large fossil
fuels plants and nuclear plants in mind but to make renewable resources more
sufficient new transmission infrastructure is required.
·
Barriers to entry: As
the energy transmission have a long history with non-renewable resources making
it immense powerful in the market which makes a powerful barrier for renewable
resources for better establishment of these a higher budget, policies and
investment is required. Starts up face even bigger problems or can say barriers
to enter in the market as investors mainly want large amount of production
which will be challenging for the starts ups and small scale business.[16]
·
Availability of power:
Like solar power is generated when sunshine is available and turns off at
night. Just like that availability of renewable resources is needed as it
depends on natural sources which are not in hands of human.
·
Power quality issues: consistently
high power quality is needed to ensure stability and high efficiency of the
source. The power is needed for the system to work well with high reliability
and lower costs.
·
Lack of knowledge: as
this area is still developing the lack of information and knowledge in the
people is the barrier between the use of resources and the sources itself. The
government is needed to assist and inform people about it and spread awareness
about its benefits.
(Challenges
are showing the negative impact on the results as shown in figure 8)
(Figure8)[17]
As
there are challenges which are faced by India in the renewable energy sector
which not only is faced by India but other countries as well. There are
opportunities also where the expansion and promotion of renewable energy sector
can grow and create a better source for the government and for a healthy
environment. The opportunities are as follows:
·
Increase in the use and promotion of
hybridization of different renewable sources: the hybrid system
in renewable resource will be very helpful it will reduce the variability in
power generations they will be complementary to each other. They will also reduce
the cost of transmission lines by sharing it. Germany has enough storage
capacity to cover the needs of 6.3 million people to support their grid
infrastructure while we do not have any. In this area only there are more
chances for the growth.
For example: In 2018, national policy
was announced to promote an extensive grid-connected wind-solar PV hybrid
system for efficiently utilizing transmission infrastructure and land. However,
the capacity of one resource must be at least 25% of the rated power capacity
of other resources.[18]
·
Evacuation infrastructure building:
Evacuation infrastructure means the use of transmission and distributing
infrastructure for the discharge or transfer of electric power from generating
facility to the grid for distribution. It will be important in the areas where
solution for storage is not developed. High voltage transmission lines will be
able to transport a huge amount of energy over a long distance.
·
Promotion and development of
digitalization: Advanced software solutions can better the
level of grid connectors impacting the consumer behaviour. It has huge
potential and it will impact the growth significantly. Promotion and
development in digitalization will make people work easier and will make it
look more attractive. [19]
·
Development of battery storage solutions:
battery storage costs are decreasing significantly making them an important and
cost efficient tool for managing fluctuations because of renewable resources in
large battery systems in low demand situations.
·
Development in the distribution
companies: a lot of energy produced is wasted because the
distribution companies use out dated machinery which results in line faults,
leakages, undersized and over-utlized transformers. Maintenance and proper
monitoring of the work and machinery used by distribution companies can save a
lot of energy transmission. Privatization and better autonomy can also be a
better way to support the cause.
·
Better policy and regulation: the
most effective way is to make and provide better policy and proper management
in the regulations of those policies which can include targets, carbon
emissions reduction and energy efficiency ways. It can be to reduce the fossil
fuels subsidy imposing higher tax and penalties in certain way. Innovative hubs
and investment incentives will also help in the promotion of the RE.
·
Education and awareness on the topic:
raising awareness and educate the people and stakeholders about the benefits
and potential of the renewable energy will bring huge amount of people in the
sector. Adverstiment and opportunities to them should be given so that it will
attract the people. Engaging and empowering the committees, consumers and
investors will be huge profit for the sector. It will foster the culture were
innovations can take place and solutions will be brought to the table.
Children’s should be educated in schools so that they can learn the relation
between renewable energy and a healthy environment.
·
Investing in the innovative ideas and
research: the way to promote the renewable energy is when people
are motivated to bring their ideas in front and help in the development. When
great minds will be working on what’s necessary then it will be easy to reach
the cause which is required and it can be possible when investments are increased
in the innovative ideas and technologies. It can also involve enhancing
existing technologies and ways. Government should bring financial incentives
and rewards for the promotion and development of ideas and allocate funds
towards research and development.[20]
·
Behaviour and lifestyle:
promotion of renewable energy can be increased by the influence and change of
the behaviour and lifestyle of the consumers and producers. This can be done by
making it a habit to use energy saving and energy efficient practices and
habits which will automatically inspire the next generation. Behaviour and
lifestyle changes can reduce overall energy demands and increase direct use of
clean energy.
·
Acknowledging the challenges and making
effort to mind the solutions: Away to develop in an area is to acknowledge
where the problem is and making effort to find the solutions same goes with
energy. we firstly need to identify the area which is causing trouble in
development which can be social, environmental, political or technical then
finding and implementing the best plans will work in favour.[21]
3.4)
How
are international collaborations and agreements influencing India's renewable
energy policies, and what implications do they have on the legal framework?
The international relation (IR) ministry has been
engaging with MEA (missions of India abroad), embassies of other countries and
international organizations that works on many sectors for cooperation in the
field of new and renewable energy.
Over the years, ministry has taken several initiatives to
promote. They have signed memoranda of understanding (MOUs), implementation
agreements (IAs), supplementary agreements (SAs), letter of intent (LOI) etc.
for bringing and supporting new and updated renewable energy. For the same
purpose these bilateral, multilateral, joint working group (JMG) meetings are
done through offline and online modes. The delegations were led by the
honourable minister and senior officers of the ministry for the purpose of
these bilateral, multilateral, JWG meetings, signings of MOUs, etc. further,
India has been joining forces under number of trilateral and multilateral
cooperation framework like:
India-Brazil-South
Africa (IBSA) in October 2007. At this summit, the three
countries reached agreement to work together in the promotion of nuclear
energy, clean energy technologies and other renewable energies and in the
endorsement of climate change mitigation.
Association
Of South-East Asian Nations (ASEAN) tripling renewable energy
capacity to 11TW by 2030 and joining initiatives like the Global Cooling Pledge
to reduce emissions from refrigeration and air conditioning. 45% reduction in
GHG emissions and Singapore’s net-zero emissions target by 2050.
South-Asian
Association for Regional Cooperation (SAARC) The 3rd
Meeting of the South Asian Association for Regional Cooperation (SAARC) Council
of Experts of Energy Regulators (Electricity) (SAARC CEERE) was held on 13-14
November 2018 in Colombo, Sri Lanka with the technical and financial support of
the Asian Development Bank. The Council discussed ways to initiate regional
power trade through the implementation of the SAARC Framework Agreement. The
Council aims to provide an enabling regulatory environment to realize the SAARC
Energy Ring.
Brazil-Russia-India-China-South
Africa (BRICS) where
China imported 79.64 million metric tons of crude from Russia in 2021, 15%
of China's total crude imports and 35% of Russia's exports. China imported 16.9
billion cubic meters of natural gas from Russia last year, 10% of China's total
natural gas import and 8% of Russia's exports, according to the CNPC institute.[22]
In its addition, the ministry involves with numerous
foreign and transcontinental funding organizations, including New Development
Bank, World Bank, African Development Bank (AFDB) and KFW. The Asian
development bank (ADB), Global Environment Facility (GEF), United Nations
industrial development organization (UNIDO), United Nations development
programme (UNDP) and GIZ providing project-based support for renewable energy
advancement in India.[23]
There are certain areas on which basis the collaboration
happens and can help India to grow in renewable energy sector. Examples of
those are:
·
Technology
transfer: International collaborations often involve technology
transfer agreements were one country gains benefits from the advanced level of
technology developed by other. It accelerates its progress in the cause.
·
Financial
assistance: Many international agreements involve
financial assistance or funding support for the projects of the country which
helps in making large scale plans and facilities with fewer barriers.
·
Market
access: International collaborations can facilitate market
access for one country products and service in other countries. This will create
new export opportunities for companies and help to increase domestic RE
industries.
·
Climate
commitment: International agreements such as the Paris Agreement [24]on
climate change place pressure on the countries to reduce their greenhouse gas
emissions and transition towards low-carbon energy sources.
·
Alignment
of different counties policy: Most international
agreements often encourage countries to align their renewable energy policy
with world-wide best practices and standards leading towards the adoption of
more ambitious renewable energy targets, implementing supportive regulatory
frameworks, introducing incentives and subsides to promote RE.
Comparing the
policies and approaches of other developed countries with India will bring the insights that will help in
understanding the things more precisely and how can we improve our policies for
the better result. [25]
·
Framework of policies:
India: it has implemented various policies and initiatives to promote
renewable energy, including the national solar mission and various state-level
renewable energy policies.
Developed countries: they have more matured and well versed plans
including detailed frameworks, tariffs policies, renewable portfolio standards,
tax incentives and carbon pricing mechanisms.
·
Technology
adoption:
India: India is been
active in adopting renewable energy technologies mainly in solar and wind
power. However, they have faced immense challenges in terms of technology
access and affordability.
Developed Countries:
Developed countries tend to have more advanced technology adoption and
innovation ecosystems in the renewable energy sector. They often invest heavily
in research and development to drive technological advancements.
·
Grid
Integration:
India: India has
faced a significant challenge regarding Grid integration of renewable energy
sources due to the regular change in the nature of solar and wind power.
Efforts are been continuously made for improving grid infrastructure and
develop storage solutions.
Developed Countries:
Whereas, Developed countries had a
substantial progress regarding the grid integration because of advanced
grid management systems, demand-side management programs and energy storage
technologies.
·
Investment
and Financing:
India: Attracting
sufficient investment for renewable energy projects has been a challenged for
India, although it is being significant progress in past recent years.
Developed Countries:
whereas, developed countries generally have more available and mature financial
markets and more and greater access to capital for renewable energy projects.
They also often got over leverage public-private partnerships and innovative
financing mechanisms to move their investment.
·
Energy
Transition Policies:
India: Energy
transition of India shifted from coal-dominated, fuel power generation towards
renewable energy to make energy accessible, affordable, and sustainable.
Developed Countries:
whereas, developed countries’ energy transition policies often prioritize and
involves decarbonisation, energy security and climate mitigation with an
emphasis on making fossil fuels phased out and accelerating the deployment of
renewables.
·
Targets:
India: India has been
very persistent in achieving their targets which is 450 GW of renewable energy
till 2030.
Developed countries:
whereas, Denmark and Germany have goals of 100% RE till 2050 and UK and Sweden
shares same goals but slightly different timelines. (As summarised in table 2)
|
Aspect
|
International
Development
|
India
development
|
|
Policy Framework
|
Mature and detailed frameworks, including renewable
portfolio standards, tax incentives, and carbon pricing mechanisms.
|
Implemented various policies and initiatives,
including the National Solar Mission and state-level renewable energy
policies.
|
|
Technology Adoption
|
More advanced technology adoption and innovation
ecosystems.
|
Active in adopting renewable energy technologies,
primarily in solar and wind power.
|
|
Grid Integration
|
Substantial progress in grid integration due to
advanced grid management systems and energy storage technologies.
|
Faced challenges regarding grid integration due to
the variability of solar and wind power. Efforts made to improve grid
infrastructure.
|
|
Investment and Financing
|
More available and mature financial markets, greater
access to capital for renewable energy projects.
|
Attracting significant investment for renewable
energy projects, showing significant progress in recent years.
|
|
Energy Transition Policies
|
Prioritization of decarbonization, energy security,
and climate mitigation, with an emphasis on phasing out fossil fuels.
|
Transition from coal-dominated power generation
towards renewable energy, focusing on accessibility, affordability, and
sustainability.
|
|
Targets
|
Goals of transitioning to 100% renewable energy, with
different timelines among countries.
|
Persistent focus on achieving targets, with a goal
of 450 GW of renewable energy by 2030.
|
(Table 2)
In
short, India and developed countries have same goals in energy transition
towards renewable sources; however there is difference in policy frameworks,
grid integration, technology adoption and investment strategies. By analysing
the experiences of developed countries, India can get very working insights to
learn valuable lessons and know their opportunities for improving its renewable
energy policies and approaches.
4)
Conclusion:
With
an analysis, it was founded that the conditions of the environment of the world
is on wrong track because of various reasons and one of the biggest cause is
the actions of human beings. Human beings have caused tremendous negative
effect on the environment and the safe thing to do is bringing the
concentration of carbon dioxide to 350 ppm till 2100. It was analysed that the
only and scientific based pathway will be the use of renewable resources which
can be possible by developing, promoting and encouraging the use of resources
among people. As Renewable energy holds a lot of potential in turning the table
over the climate changes; it can increase energy security and can be better
option for sustainable development. It underscores a pivotal nexus in
addressing pressing global challenges while making a blue print for the path
towards sustainable development. It shows that there is a relationship between
renewable energy development and how management and governing of its legal
aspects. India’s development in respect of renewable energy was not over a year
but it took decades to reach where we are and it will took more years to reach
where we want to. There have been plenty of policies that they have generated
for the development of renewable energy and there are recent plans that are
still on the progress.
Whereas
the policies that is supporting the plans of government form years there have
been recent legal framework which has played a vital role in providing the
renewable energy with their policies, incentives, subsidies and regulations.
These aspects are instrumental role to the goals. The government has taken many
steps to promote the RE so that people and companies adapt it instead of
non-renewable resources. There are various areas where RE policies focus and
have different impacts and implications regarding it. It will be impossible to
achieve the goals if government doesn’t provide incentives, subsidies and tax
exemptions to people for the promotion, development and use of the sources.
India alone cannot achieve
its goals and control the effects of weather if the world is not in support of
it. The policies and financial incentives that they frame are one thing but to
have the international support on the way is another. International relations
and support is important to achieve their goals. This support is beneficial to
everyone and plays another important role. This support is known as
International collaborations. International collaboration, agreements and
treaties are the key aspect to promote and develop the RE in any country and
same goes for India. Technology transfer, assistance in funding, etc. are not
only for the development were domestic country can use best areas international
country have but they can also be provided by market access in international
market and its access. It helps in the development of the domestic country
knowledge and access towards the technology. The aspects of these
collaborations and treaties are to help each other and reach the same goal for
the same world.
The comparative analysis of
Renewable Energy policies and approaches between India and developed countries
gives the idea that every country has some insights just different targets for
different timelines. Whole developed countries showcase mature policy
frameworks, advanced technology adoption and robust investment ecosystems,
India’s journey is more focussed on innovation, dynamism and resilience for
social-economic and environmental development. Every country is focussing on
the betterment of the environment with better legal framework.
It becomes evident that the
change of energy to renewable sources is not only based on technological aspect
but also on the moral and ethical aspect. To narrow interest and embrace a
collective vision of a sustainable and equitable future, bold and
transformative action needs to be taken form policymakers, practitioners,
developers should continue to invest in each other and overcame barriers,
addressing challenges to reach full potential of renewable sources for a
healthy, clean and green environment.
The synthesis of renewable
resources and its legal framework holds a new starting for humanity and its
sustainable future. By adopting the potential of sources while progressing in
the development and legal aspect of the targets, we can forge a pathway toward
a greener, more prosperous world for the present and future generations. The time
for action is now, and together, we must seize the chances we still have to
safe our tomorrow.
SUGGESTIONS:
There are some suggestions
which can make the goals and targets easily achievable and help in the
development of the transition of energy. It can also help to overcome the
challenges we faced regarding the use of the renewable energy and the problems
we are yet to focus on.
v Encourage Investment: Increase in the
investment will be very beneficial for the development and promotion. The
increase in funding because of the investment will encourage the companies and
people in research and development to work better and provide better services.
It will work as a motivation to everyone related to it. To promote investment
in renewable energy projects, offer financial incentives including tax credits,
grants, and low-interest loans can be provided by government. They are still
doing that but a better plans and incentives with detailed analysis to where it
is required will help in the proper funding. Put in place measures that lessen
investor financial risk, like guarantees for contracts for the purchase of
renewable energy.
v Promote Innovation and Research:
Innovation and research in the technological advancement for the renewable
energy will help in the development of market and better energy transition. To
stimulate innovation and research, allocation of funds for research and
development of renewable energy technology and encouraging the
commercialization of novel technology in renewable energy by supporting
activities in this area.
v Make sure Equality and Accessibility:
everyone should have the access of energy and policies. Creating policies that
give fair access to the advantages of renewable energy should be the top
priority, especially for marginalised communities. Putting policies in place to
combat energy poverty and help low-income households obtain renewable energy
sources. It will be a huge step that will provide an equal platform for all
people.
v Encourage Education and Awareness:
Changing everyday life and habits create more impact on the environment. If people
are aware and are in habit of preserving the environment then it will get
easier to protect it. Funding public education and awareness initiatives to
highlight the advantages of renewable energy sources and motivate people to
adopt more sustainable energy-related behaviours can help the initiative of
protecting the environment.
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Article Information
“RENEWABLE ENERGY POLICY AND ITS LEGAL FRAMEWORK”
Authors: MR. HARSHIT MOHAN, MS. KOUSHIKI MISHRA
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/10/17
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
- License CC 4.0
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