Energy & Renewables is a core concept in India's economic and environmental policy, representing the shift from conventional fossil fuels to sustainable power sources like solar, wind, and hydro. The modern era of this transition began with the establishment of the Ministry of New and Renewable Energy (MNRE) in 1982, making India the world's first country to have a dedicated ministry for non-conventional energy resources. This was created to address India's growing energy demands, ensure energy security, and mitigate climate change.
The foundational legal framework is the Electricity Act, 2003, which consolidated laws related to generation, transmission, and distribution, and promoted environmentally benign policies. A key mechanism introduced by this Act is the Renewable Purchase Obligation (RPO), which is a statutory requirement under Section 86(1)(e). The RPO mandates that obligated entities, such as electricity distribution companies (DISCOMs) and large consumers, must procure a minimum specified percentage of their total electricity consumption from renewable sources. Compliance can be achieved through direct procurement or by purchasing tradable Renewable Energy Certificates (RECs).
A major policy initiative connected to this concept is the Jawaharlal Nehru National Solar Mission (JNNSM), launched in January 2010 under the brand 'Solar India'. The Mission's objective was to establish India as a global leader in solar energy, initially setting a target of 20,000 MW of grid-connected solar capacity by 2022, which was later revised to 100,000 MW.
The sector has seen significant recent changes, driven by India's commitment to achieve 500 GW of non-fossil capacity by 2030. As of April 2026, India achieved over 50% of its installed electricity capacity from non-fossil sources, five years ahead of its 2030 Paris Agreement target. A recent scheme, the PM Surya Ghar – Muft Bijli Yojana, launched in February 2024, aims to solarise 1 crore households, fundamentally shifting the architecture from centralised generation to distributed generation where consumers become active energy producers. This scheme, along with the PM-KUSUM scheme for farmers, represents a shift in policy focus towards decentralised renewable energy.