Indian climatic conditions offer an ideal environment for biomass production. Bio-energy has remained critical to India’s energy mix.

The current potential of surplus agro and forest residues to energy is estimated at 16,000 MW along with an additional “waste-to-energy” potential of 2,700 MW. With the setting up of new sugar mills and the modernization of existing ones, the potential of bagasse cogeneration is estimated at 5,000 MW. The cumulative installed capacity, of grid-interactive biomass and bagasse cogeneration power was 1,141 MW only, as on 31 March 2007

Close on the heels of the Kyoto protocol recommending a phased changeover to bio-diesel through blending, the Government of India has taken a number of initiatives to promote bio-fuels.

The Agriculture Ministry has drawn up large scale plans to plant Jatropha across the country. India currently has nearly 250,000 acres under Jatropha cultivation.

Indian Oil Corporation, the country’s leading oil PSU has drawn elaborate plans to venture into the bio-diesel segment.

Bharat Petroleum alone has undertaken Jatropha plantation in 1,000 acres of land.

Hindustan Petroleum plans to plant 10 lakh Jatropha saplings, install transesterification units and tissue culture-related research and development.

The Planning Commission of India has initiated the draft policy for bio-fuels envisaging 5% blending by 2012 and 10% by 2017.

Major institutions like the Indian Institute of Planning, Indian Institute of Chemical Technology, Indian Institute of Science, and the Indian Institute of Technology are working diligently on the research and development aspects of bio-diesel

The Indian Railways has had a successful trial run of the Shatabdi Express running with a 20% mix of Jatropha bio-diesel with diesel.

India is the second largest producer of sugar in the world and there exists a huge potential of generating electricity to the extent of about 15000 MW through cogeneration in core industries such as sugar, breweries/distilleries, pulp & paper, fertilizer and steel industry etc.

Projections for India’s potential for bagasse cogeneration range from 3,500 MW to 5000 MW, expected to be tapped by 2012 resulting in savings of more than US$ 900 million annually. It will also contribute to annual CO2 emission reduction by 39 million MT.

CHP currently accounts for around 9 % of global power generation (IEA 2007). Its economic potential, however, is likely to be significantly greater.

• The potential of India's energy efficiency market is estimated at more than US $3.1 billion
• Energy saving potential in the range of 23% - 46% has been identified through energy audits conducted in public buildings
• Under the 1st phase of Energy Efficient Govt. Buildings Programme 9 public buildings were taken up for energy audits
• 17 additional Government buildings undertaken for 2nd phase through performance contracting under the ESCO route
• A national programme for existing buildings is under preparation
• Innovative financial instruments for promoting performance contracting are being developed to overcome lack of effective delivery mechanism
• A study by Associated Chambers of commerce and Industry of India, six million CFL’s used every year in India would eliminate the need of 3700 MW of electricity and save around $6 million
• In India, there are 300 million general lighting service points, and if 10% of these are converted to CFL, 4,000 million kW per annum of electricity would be saved, reducing the country’s electricity bills by Rs. 1320 crore
• IFC, a member of the World Bank Group is prioritizing investments in Renewable Energy & Energy Efficiency domains of Indian businesses
• Three lakh Electric Vehicles on the Indian roads by 2020 (2,3 & 4 wheelers) could result in a reduction of over 16 lakh metric tons of CO, NOx & HC by 2020, savings of over US$ 1billion in foreign exchange

Geothermal
Studies carried out by the geological survey of India have observed existence of about 340 hot springs in the hot country. These are distributed in seven geothermal provinces. Geothermal energy is at present contributing about 10,000 MW over the world and India's small resources can augment the above percentage. An experimental geothermal power plant of 5-mw capacity has been set up at Manikaran in Himachal Pradesh. A cold storage plant has also been set up in the area to utilize geothermal energy at 90°C for preserving vegetable and fruits. Glitnir Bank is continuing to spread the world about geothermal, announcing a joint venture with LNJ Bhilwara Group. The venture is being set up with initial capital of $10 million for its exploration phase.

India has been generating hydro-power for more than a century.

India ranks fifth in the world in terms of exploitable hydro potential. According to CEA estimates, India’s exploitable hydroelectric potential is estimated to be 150,000 MW, whereas the installed capacity in the country has so far been 34,653.77 MW, which is about 23 % of the potential.

According to the Ministry of New and Renewable Energy (MNRE), the potential of Indian small hydro power projects (up to 25 MW) is estimated at 15,000 MW, whereas the country has so far set up SHP projects with a cumulative installed capacity of 1,976 MW only.

The Government envisages a capacity addition of 1,400 MW during the 11th Five-Year Plan period (2007-2012). Apart from this, projects aggregating to a 394 MW capacity are under implementation.

The Indian Renewable Energy Development Agency (IREDA) arranges low-interest loans for hydel power stations with capacities up to 25 MW. A package of incentives and subsidies, including fiscal concessions, are available for SHP projects. Many states have announced preferential tariff structures for SHP projects.

The Government of India is encouraging the development of small hydro projects through public and private sector participation in various States.

Due to the wide distribution of small hydro power stations, India has a well-functioning network of manufacturers and dealers with established international connections and partnerships.

India is on course to emerge as a solar energy hub. The techno-commercial potential of photovoltaics in India is enormous. With GDP growing in excess of 8%, the energy ‘gap’ between supply and demand will only widen. Solar PV is a renewable energy resource capable of bridging this ‘gap’.

Most parts of India have 300 - 330 sunny days in a year, which is equivalent to over 5000 trillion kWh per year - more than India’s total energy consumption per year.

Average solar incidence stands at a robust 4 - 7 kWh/sq.meter/day.

About 66 MW of aggregate capacity is installed for various applications comprising 1 million industrial PV systems - 80% of which is solar lanterns, home/street lighting systems and solar water pumps, etc.

The estimated potential envisaged by the Ministry for the solar PV programme, i.e. solar street/home lighting systems, solar lanterns is 20 MW/sq. kilometre.

The potential of the solar thermal sector in India also remains untapped. According to the Ministry of New and Renewable Energy (MNRE), the estimated potential of solar water heating systems is 140 million sq. meters collector area. Against this, the achievement till 31 March 2007 stands at 1.90 million sq. meters only. The Ministry proposes an addition of 9.50 million sq. meters during the 11th Five-Year Plan period (2007-2012).

India is endowed with a large, viable and economically exploitable wind power potential.

According to the Ministry of New and Renewable Energy (MNRE), India’s potential is conservatively estimated at 45,195 MW.

The use of wind power in India ranks fourth by worldwide comparison with an installed capacity of 7,092 MW. In fact, the Indian government envisages a capacity addition of 10,500 MW during the 11th Five – Year Plan period (2007-2012).

India is placed at the third position in the world in terms of new construction and this corresponds to an overall increase of over 40% in new wind power stations.

India’s largest private power company, TATA Power is setting up a 100 MW wind energy project in India.

National Thermal Power Corporation plans to install wind energy capacity of 250 MW.

Hindustan Petrochemicals Company Limited and Oil and Natural Gas Commission are foraying into the wind energy segment with wind farms of 100 - 150 MW at various sites along India’s coastline.

A programme entitled “Small Wind Energy and Hybrid Systems” is developed every year for the small wind-power station segment i.e. those with a capacity up to 30 KW and wind-powered water pumps produced in India.

During 2006-07 (validated up to 30 September 2006), indigenously produced wind turbines valued at US$ 250 million have been exported to Australia, Brazil, China, USA and to European countries.

The export of wind turbines and components together is likely to touch about US$ 500 million during the financial year.

A vast range of attractive incentives including fiscal concessions are offered to wind power projects by the Ministry of New and Renewable Energy (MNRE), Government of India.