Legal Framework for Renewable Energy Projects in India

Madhavi Sharma,

Haveli Institute of Legal Studies and Research

INTRODUCTION

Preserving nature with sustainability and development achievement should be the highest priority of commitment in a nation. India has a comprehensive legal framework aimed at promoting renewable energy, as it is better than non-renewable energy. With the National Action Plan on Climate Change (2008), the National Renewable Energy Policy (2009), Renewable Energy Certificates (RECs), the Wind Solar Hybrid Policy (2018), the Renewable Purchase Obligation, and the Electricity Act Amendment, India has made up for promoting renewable energy through these various policies and legal frameworks, aligning with the United Nations Sustainable Development Goal (SDG) 7. Sustainable development goal 7 with its mission states affordable and clean energy, which aims to provide affordable, reliable, sustainable, and modern energy for all by 2030. Though there is significant growth in these energy projects, challenges persist, and ongoing efforts are needed to achieve the goals of these projects and fulfill the UN’s SDG 7 because this goal itself has the objective of universal access to energy, easing renewable energy share, and improving energy efficiency.

The following describes the evolution from the earliest legislation to the current legal framework for renewable energy projects in India:

I. Previous scenario of a legal framework for renewable projects in India, that is, pre-independence (before 1947):

1.   Indian Electricity Act, 1903

2.   The Oil Fields (Regulation and Development) Act, 1948

3.   The Indian Mines Act, 1923

II.  After the Independence Perspective, which is the Period of Post-Independence (1947–1990),

1. The Electricity (Supply) Act, 1948, which was in place of the 1903 Act.

2. The Coal Mines (Nationalization) Act, 1973

3. The Oil and Natural Gas Commission Act, 1959

4. The Atomic Energy Act, 1962

III.   The Period of Economic Liberalization (1990s–2000s)

1. The Electricity Regulatory Commission Act, 1998

2. The New Exploration Licensing Policy (NELP), 1999

3. The Electricity Act, 2003, which replaces the 1948 Act.

IV.  Recent Developments That Are Ongoing in the Current Perspective:

1.   The National Solar Mission, 2010

2.   The National Wind-Solar Hybrid Policy, 2018

3.   The Electricity Act, 2003: A comprehensive piece of Indian legislation, the Electricity Act, 2003, attempts to bring together several regulations pertaining to the generation, transmission, distribution, trade, and use of electricity. It requires the development of a national policy for non-conventional energy systems and encourages the use of renewable energy sources. Furthermore, in order to fulfill the needs in the electricity sector, this act was amended in 2007. Currently, attempts are being made to amend it multiple times, with the Electricity (Amendment) Bill 2022 being one of those attempts. But the parliament hasn't yet passed this bill.

4.   PM Surya Ghar Muft Bijli Yojana This initiative was launched on February 15, 2024, and promotes providing free electricity to households with the goal of installing rooftop solar panels. It is a significant initiative that promotes renewable energy in India. These initiatives reflect India's commitment to advancing its renewable energy sector and achieving its sustainability goals.

CONCLUSION

From the perspective of the past scenario and the recent developments in energy laws, especially in renewable energy, it has come to light that India’s commitment in the form of initiatives has been reflected in its commitments to advancing sustainability aims through the renewable energy sector. In the light of today’s era, India’s introduced many recent laws and policies, including these projects. This legal framework has seen important developments in recent years and aims to promote and support the growth of renewable energy resources. Continued updates and advancements to the legal framework are essential to addressing the challenges and opportunities arising in the renewable energy sector. By promoting sustainable development aims, attracting investment, ensuring compliance and standards, facilitating technological innovation, and giving social and economic benefit while meeting international commitments, With Addressing these aspects through a robust legal framework is essential for the successful development and integration of renewable energy in India. India’s legal framework includes aspects of policy and regulatory support, an institutional framework, and a legislative framework with boosts and financing. From this, the overall Indian legal framework is a supportive environment for growth in renewable energy systems, but ongoing challenges have to be addressed, which is necessary to attain India’s renewable energy aims.

REFERENCES

1. Rohit Pathak, Evolution and adoption of Green Energy in India over the past 5 years,       (Jan. 2, 2023), https://timesofindia.indiatimes.com/blogs/voices/evolution-and-adoption-of-green-energy-in-india-over-the-past-5-years/.                    

2. Electricity Act, 2003, No. 36, Acts of Parliament 2003 (India)

3. PM – Surya Ghar: Muft Bijli Yojana, https://www.myscheme.gov.in/schemes/pmsgmb.