The document outlines key policies related to renewable energy and electricity in India: 1) The Electricity Act of 2003 lays the statutory framework for promoting renewable energy generation and mandates that regulators specify renewable purchase obligations. 2) National Electricity Policies from 2005-2021 aim to increase access and availability of power, promote renewable energy, and improve the financial viability of the electricity sector. 3) National Tariff Policies of 2006 and 2016 provide guidelines for regulators to determine tariffs and promote renewable energy through measures like renewable purchase obligations and competitive bidding.

1. Policies

2. EA 2003: RE Provisions
• Section 3 (1)
• National Electricity Policy and Plan for development of power system based on
optimal utilization of resources including renewable sources of energy
• Section 4
• Central Government, in consultation with State Governments, to notify a national
policy, permitting stand alone systems (including those based on RE) for rural areas
• Section 61 (h)
• Tariff Regulations by Regulatory Commission to be guided by promotion of
generation of electricity from renewable energy sources in their area of jurisdiction
• Section 86(1) (e)
• Provides Statutory Framework and Mandates SERC for taking steps for promotion of
Cogeneration and Generation of Electricity from Renewable Sources of Energy
• Specify purchase of electricity from such sources a percentage of total consumption
in the area of a distribution licensee

3. National Electricity Policy 2005
• Access to Electricity -Available for all households in next five years;
• Availability of Power -Demand to be fully met by 2012.
• Energy and peaking shortages to be overcome and adequate spinning reserve to be
available;
• Supply of Reliable and Quality Power of specified standards in an efficient manner
and at reasonable rates;
• Per capita availability of electricity to be increased to over 1000 units by 2012;
• Minimum lifeline consumption of 1 unit/household/day as merit good by year 2012;
• Progressively increase share of renewable energy in the electricity mix;
• Financial Turnaround and Commercial Viability of Electricity Sector; and
• Protection of consumers’ interests.

4. National Tariff Policy 2006
• Section 3 (1) of the Electricity Act 2003 empowers the Central Government to
formulate the tariff policy.
• Section 3 (3) of the Act enables the Central Government to review or revise the
tariff policy from time to time.
• The Act requires CERC and SERCs to be guided by the tariff policy in discharging
their functions including framing the regulations undersection 61 of the Act.
• Section 61 of the Act provides that Regulatory Commissions shall be guided by the
principles and methodologies specified by the Central Commission for
determination of tariff applicable to generating companies and transmission
licensees.
• The Forum of Regulators has been constituted by the Central Government under
the provisions of the Act which would, inter alia, facilitate consistency in approach
specially in the area of distribution.

5. National Tariff Policy 2016
 Promotion of renewable generation sources
 8% of total consumption, excluding hydro, from solar energy by March 2022;
 Renewable Generation Obligation on new coal/lignite based thermal plants. The
renewable energy produced by each generator may be bundled with its thermal
generation for the purpose of sale. In case an obligated entity procures this
renewable power, then the SERCs will consider the obligated entity to have met the
RPO to the extent of power bought from such renewable energy generating stations;
 Fully depreciated power plants whose PPAs have expired can now bundle renewable
power with power from plants;
 Long term RPO to be declared by ministry of power in consultation with MNRE;
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6. National Tariff Policy 2016
 States shall endeavor to procure power from renewable energy sources
through competitive bidding to keep the tariff low;
 In calculating the cross-subsidy surcharge (CSS) a change in the
methodology was added. Earlier, cross subsidy is calculated by using the
cost of marginal power (top 5% power at the margin). Instead, the
weighted average cost of power including transmission and wheeling
losses will be used;
 CSS cannot be more than 20% of the applicable tariff to the category of
consumer seeking open access.

7. National Electricity Policy 2021 - Draft
• Promote clean and sustainable generation of electricity
• Development of adequate and efficient transmission system
• Revitalization of Discoms
• Development of Efficient Markets for electricity
• Supply of reliable and quality power of specified standards in an efficient
manner
• Move towards light touch regulation