Renewable Energy Policy & Promotion in India
India's renewable energy policy framework is multi-faceted, encompassing infrastructure development (Green Energy Corridor), financial incentives (ISTS waive...
India’s Installed Wind Power Capacity Reaches 57,443 MW as on June 30, 2026
The article details India's significant progress in wind energy, reaching an installed capacity of 57,443 MW by June 30, 2026, and ranking 4th globally in wind energy installation as of December 31, 2025. It highlights various government initiatives aimed at promoting renewable energy, including wind power, such as the Green Energy Corridor Scheme, waiver of Inter State Transmission System (ISTS) charges, 100% FDI under the automatic route, Renewable Purchase Obligation (RPO) and Renewable Consumption Obligation (RCO) trajectories, Viability Gap Funding (VGF) for offshore wind projects, and several new Electricity Rules and policies like the National Repowering and Life Extension Policy for Wind Power Projects, 2023, and the Offshore Wind Energy Lease Rules, 2023. The article also provides state-wise installed capacity and power generation data, with Gujarat, Tamil Nadu, and Karnataka leading.
Syllabus mapping
Mains syllabus topics
Federal Structure
Comparative Constitution
Parliament Legislatures
Government Policies Interventions
Welfare Schemes Vulnerable Sections
Prelims takeaways
- India's installed wind energy capacity reached 57,443 MW as on June 30, 2026.
- India ranked 4th globally in wind energy installation till December 31, 2025, as per GWEC Report 2026.
- Key government initiatives for renewable energy include Green Energy Corridor Scheme, ISTS charge waiver, 100% FDI, RPO/RCO, VGF for offshore wind, Electricity (Rights of Consumers) Rules, 2020 (net-metering), National Repowering and Life Extension Policy for Wind Power Projects, 2023, Offshore Wind Energy Lease Rules, 2023, Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, and Green Term Ahead Market (GTAM).
- Gujarat, Tamil Nadu, and Karnataka are the top states in terms of installed wind energy capacity and generation.
- Renewable Consumption Obligation (RCO) is applicable to all designated consumers under the Energy Conservation Act 2001 and includes consumption from Decentralized Renewable Energy sources.
Elimination traps
- Specific dates for capacity figures (e.g., June 30, 2026) and global ranking (Dec 31, 2025).
- Distinguishing between RPO and RCO and their specific applications.
- Thresholds for net-metering (500 kW) and Green Energy Open Access (100 kW).
Static concepts
- Wind Energy
- Renewable Energy
- Green Energy Corridor Scheme
- Inter State Transmission System (ISTS)
- Foreign Direct Investment (FDI)
- Renewable Purchase Obligation (RPO)
- Renewable Consumption Obligation (RCO)
- Viability Gap Funding (VGF)
- Net-metering
- Green Energy Open Access
- Green Term Ahead Market (GTAM)
Probable question areas
Question areas
- Questions on India's current status and global ranking in wind energy capacity.
Question areas
- MCQs identifying specific government schemes and policies related to renewable energy promotion (e.g., Green Energy Corridor, VGF for offshore wind, RPO/RCO, GTAM).
Question areas
- Statements regarding the features and objectives of various Electricity Rules (e.g., net-metering, green energy open access).
Question areas
- Questions on the leading states in wind power generation and installation in India.
Question areas
- Understanding the role of FDI and transmission infrastructure in renewable energy development.
UPSC concepts in this story
Durable syllabus ideas for revision — not article memory.
Previous year Prelims questions on overlapping themes and topics.
It is possible to produce algae-based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry?
1. Production of algae-based biofuels is possible in seas only and not on continents.
2. Setting up and engineering the algae-based biofuel production requires a high level of expertise/technology until the construction is completed.
3. Economically viable production necessitates the setting up of large scale facilities which may raise ecological and social concerns.
Select the correct answer using the code given below:
Explanation
Correct answer
B. 2 and 3 only
Statement 1 is incorrect. The production of algae-based biofuels is not limited to seas only. It can be done on land, saline water, or wastewater. Statement 2 is correct. Setting up and engineering the algae-based biofuel production does require a high level of expertise/technology, which might be a limitation for developing countries. Statement 3 is also correct. Economically viable production of algae-based biofuels does necessitate the setting up of large-scale facilities, which may raise ecological and social concerns.
Science & Technology
Environment & Ecology
Renewable & Clean Energy
Biotechnology & Genetic Engineering
Environmental Law & Policy
With reference to coal-based thermal power plants in India, consider the following statements :
1. None of them uses seawater.
2. None of them is set up in water-stressed district.
3. None of them is privately owned.
How many of the above statements are correct?
Explanation
Correct answer
D. None
* Statement 1 is incorrect: The Mundra Thermal Power Plant employs a closed-cycle induced draft circulating cooling water system that utilises seawater. Seawater is drawn from the Gulf of Kutch through robust glass reinforced pipes of significant diameter. In addition, purified seawater from a reverse osmosis plant is utilised by various supplementary systems. * Statement 2 is incorrect: According to recent research by WRI (World Resources Institute), 40 percent of India's thermal power plants are situated in regions experiencing significant water stress. This poses a challenge as these plants rely on water for cooling purposes. The scarcity of water is already causing disruptions in electricity generation in these areas, with 14 out of India's 20 largest thermal utilities having experienced at least one shutdown between 2013 and 2016 due to water shortages. * Statement 3 is incorrect: India has a total of 269 Thermal Power Plants, with 138 of them being owned by the public sector and the remaining 131 owned by the private sector.
Indian Economy
Environment & Ecology
Environmental Law & Policy
Indian Hydrography & Water Bodies
Consider the following statements :
1. Under the Ramsar Convention, it is mandatory on the part of the Government of India to protect and conserve all the wetlands in the territory of India.
2. The Wetlands (Conservation and Management) Rules, 2010 were framed by the Government of India based on the recommendations of Ramsar Convention.
3. The Wetlands (Conservation and Management) Rules, 2010 also encompass the drainage area or catchment regions of the wetlands as determined by the authority.
Which of the statements given above is/are correct?
Explanation
Correct answer
C. 3 only
Statement 1 is incorrect. While the Ramsar Convention encourages member countries to take action for wetland conservation and wise use, there's no legal mandate to protect all wetlands. Statement 2 is incorrect. The Wetlands (Conservation and Management) Rules, 2010 were formulated by the Indian government to regulate activities in wetlands, and their development was not certainly influenced by the Ramsar Convention's principles. The rules also consider other national legislations and priorities. Statement 3 is correct. The Wetlands (Conservation and Management) Rules, 2010 do encompass the drainage area or catchment regions of the wetlands. This holistic approach recognizes the importance of the surrounding area for the overall health and functioning of the wetland ecosystem.
Environment & Ecology
Biodiversity Conservation & Protected Areas
Environmental Law & Policy
Consider the following statements :
Statement-I : According to the United Nation's 'World Water Development Report, 2022', India extracts more than a quarter of the world's groundwater withdrawal each year.
Statement-II :India needs to extract more than a quarter of the world's groundwater each year to satisfy the drinking water and sanitation needs of almost 18% of world's population living in its territory.
Which one of the following is correct in respect of the above statements?
Explanation
Correct answer
C. Statement-I is correct but Statement-II is incorrect
* Statement 1 is correct. According to the United Nations World Water Development Report 2022, with an estimated 251 km3 annual withdrawal from an estimated 20 million wells and tube wells, India is the world's greatest groundwater user. This accounts for more than a quarter of the total groundwater extracted internationally. * Statement 2 is incorrect. India uses about 89% of this groundwater for irrigation. Major share of total groundwater extracted by India is utilised for irrigation purposes and not for drinking and sanitation purposes.
Agriculture
Environment & Ecology
Agricultural Policies & Supply Chains
Environmental Law & Policy
Indian Hydrography & Water Bodies
Which of the following statements in relation to NIRANTAR (National Institute for Research and Application of Natural Resources to Transform, Adapt and Build Resilience), a platform of institutions under the Ministry of Environment, Forest and Climate Change, is/are correct ?
1. Ecosystem Survey and Analysis is a vertical under this platform, the lead institute of which is Botanical Survey of India, Kolkata.
2. Research and Management of Ecosystem Service is a vertical under this platform, the lead institute of which is Central Zoo Authority, New Delhi.
3. Capacity Development Support is a vertical under this platform, the lead institute of which is Indian Institute of Forest Management, Bhopal.
Select the answer using the code given below :
Explanation
Correct answer
B. 1 and 3 only
Statement 1 is Correct: The National Institute for Research and Application of Natural Resources to Transform, Adapt and Build Resilience (NIRANTAR) is a collaborative platform under the Ministry of Environment, Forest and Climate Change (MoEFCC). Ecosystem Survey & Analysis is one of its four thematic verticals, and its lead institute is the Botanical Survey of India (BSI), Kolkata. Statement 2 is Incorrect: The Research and Management of Ecosystem Service vertical is led by the Indian Council of Forestry Research and Education (ICFRE), Dehradun, not the Central Zoo Authority (CZA). The CZA is merely a participating institute under this vertical. Statement 3 is Correct: The Capacity Development Support vertical focuses on research, education, and capacity building. The lead institute for this vertical is the Indian Institute of Forest Management (IIFM), Bhopal. Therefore, option B is the correct answer.
Environment & Ecology
Environmental Law & Policy
Biodiversity Conservation & Protected Areas
Biogeography & Ecosystems
Consider the following statements:
Statement I:
At the 28th United Nations Climate Change Conference (COP28), India refrained from signing the “Declaration on Climate and Health”.
Statement II:
The COP28 Declaration on Climate and Health is a binding declaration; and if signed, it becomes mandatory to decarbonize health sector.
Statement III:
If India’s health sector is decarbonized, the resilience of its health-care system may be compromised.
Which one of the following is correct in respect of the above statements?
Explanation
Correct answer
C. Only one of the Statements II and III is correct and that explains Statement I
At COP28, India chose not to sign the “Declaration on Climate and Health,” and this decision can be understood by analyzing the nature of the declaration and India’s concerns. ✅ Statement I: Correct. India did not sign the COP28 Declaration on Climate and Health, unlike over 120 other countries. ❌ Statement II: Incorrect. The declaration is not legally binding; it is a voluntary political commitment. Signing it does not legally mandate countries to decarbonize their health sectors immediately. ✅Statement III: Correct. India’s concern is that rapid decarbonization of its health sector could compromise the resilience and accessibility of healthcare services, given current developmental challenges and resource constraints. Therefore, only Statement III correctly explains Statement I, while Statement II is factually wrong about the binding nature of the declaration.
Environment & Ecology
Current Affairs
Climate Change & Conventions
Environmental Law & Policy
Consider the following statements :
The Environment Protection Act, 1986 empowers the Government of India to
1. state the requirement of public participation in the process of environmental protection, and the Procedure and manner in which it sought
2. lay down the standards for emission or discharge of environmental pollutants from various sources
Which of the statements given above is/are correct?
Explanation
Correct answer
B. 2 only
Statement 1 is incorrect: The Environment Protection Act (EPA), 1986 recognizes the importance of public participation in environmental decision-making. However, it does not explicitly define the procedure for public participation in environmental governance, such as public hearings or consultations. These provisions were later formalized through subsequent rules and notifications, such as the Environmental Impact Assessment (EIA) Notification, 2006, which mandates public hearings for certain projects. Statement 2 is correct: The EPA, of 1986 empowers the Central Government to Lay down environmental quality standards for air, water, and soil, Regulate emissions and discharges of pollutants from industries and other sources, Restrict hazardous substances and their handling, Take emergency measures to prevent environmental disasters.
Environment & Ecology
Environmental Law & Policy
Air Pollution & Emissions
Consider the following statements:
Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.
Statement-II: Carbon markets transfer resources from the private sector to the State.
Which one of the following is correct in respect of the above statements?
Explanation
Correct answer
B. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
* Carbon markets, which include mechanisms like cap-and-trade systems and carbon offsets, are increasingly being used as a tool to incentivize emissions reductions and help in the fight against climate change. So, statement 1 is true. * Carbon markets typically work by transferring resources from emitters (usually in the private sector) to entities that can reduce or remove greenhouse gas emissions, which can be either private entities or the government. So, statement 2 can also be true.
Environment & Ecology
Climate Change & Conventions
Environmental Law & Policy
“Climate Action Tracker" which emission reduction pledges of different countries is a:
Explanation
Correct answer
A. Database created by coalition of research organisations
The Climate Action Tracker (CAT) is an independent scientific analysis that tracks government climate action and measures it against the globally agreed Paris Agreement aim of holding warming well below 2C, and pursuing efforts to limit warming to 1.5C. A collaboration of two organisations, Climate Analytics and NewClimate Institute, the CAT has been providing this independent analysis to policymakers since 2009. CAT quantifies and evaluates climate change mitigation targets, policies, and actions. It also aggregates country action to the global level, determining likely temperature increases during the 21st century using the MAGICC climate model. CAT further develops sectoral analysis to illustrate the required pathways for meeting the global temperature goals.
Environment & Ecology
Current Affairs
Climate Change & Conventions
Environmental Law & Policy
With reference to ‘Agenda 21’, sometimes seen in the news, consider the following statements:
1. It is a global action plan for sustainable development.
2. It originated in the World Summit on Sustainable Development held in Johannesburg in 2002
Which of the statements given above is/are correct?
Explanation
Correct answer
A. 1 only
Statement 1 is correct: Agenda 21 is a comprehensive global action plan adopted at the United Nations Conference on Environment and Development (UNCED), also known as the Rio Earth Summit, held in Rio de Janeiro, Brazil, in 1992. It provides a framework for achieving sustainable development by integrating environmental protection, social equity, and economic growth at global, national, and local levels. Statement 2 is incorrect: The World Summit on Sustainable Development (WSSD), held in Johannesburg, South Africa, in 2002, reviewed and reaffirmed the commitments made under Agenda 21 but did not introduce it. Instead, the summit focused on assessing progress, strengthening implementation, and launching new initiatives, including the Johannesburg Plan of Implementation (JPOI).
Environment & Ecology
Climate Change & Conventions
Environmental Law & Policy
Previous year Mains questions mapped to overlapping GS syllabus topics.
The National Commission for Protection of Child Rights has to address the challenges faced by children in the digital era. Examine the existing policies and suggest measures the Commission can initiate to tackle the issue.
Statutory, regulatory and quasi-judicial bodies
Government policies and interventions
Welfare schemes for vulnerable sections
View Mains PYQ
"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.
Governance, transparency, accountability and e-governance
Government policies and interventions
Development processes, NGOs, SHGs and stakeholders
View Mains PYQ
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
Union and States — federal structure and devolution
Government policies and interventions
View Mains PYQ
Discuss the evolution of collegium system in India. Critically examine the advantages and disadvantages of the system of appointment of the Judges of the Supreme Court of India and that of the USA.
Indian Constitution — evolution, features, amendments, basic structure
Comparison of Indian constitutional scheme with other countries
Executive, Judiciary and pressure groups
View Mains PYQ
Indian Constitution has conferred the amending power on the ordinary legislative institutions with a few procedural hurdles. In view of this statement, examine the procedural and substantive limitations on the amending power of the Parliament to change the Constitution.
Indian Constitution — evolution, features, amendments, basic structure
Parliament and State legislatures
View Mains PYQ
India-Africa digital partnership is achieving mutual respect, co-development and long-term institutional partnerships. Elaborate.
Bilateral, regional and global groupings involving India
Government policies and interventions
Development processes, NGOs, SHGs and stakeholders
View Mains PYQ
Which of the following statements regarding India's wind energy sector, as per the article, is correct?
Explanation
As per the article, India ranked 4th globally in wind energy installation till 31st Dec, 2025, and the total installed capacity of wind energy projects in the country is 57,443 MW as on 30.06.2026. Option C is incorrect as Gujarat leads in both installed capacity and power generation. Option D is incorrect as ISTS charges are waived for projects commissioned by 30th June 2025 and to be commissioned thereafter with graded ISTS charges, not completely waived for all projects after that date.
With reference to the government initiatives for promoting wind energy in India, consider the following statements: 1. The Green Energy Corridor Scheme primarily funds the laying of new transmission lines for renewable power evacuation. 2. Foreign Direct Investment (FDI) up to 100 percent is permitted under the automatic route for renewable energy projects. 3. The Renewable Consumption Obligation (RCO) is applicable only to Central Public Sector Undertakings (CPSUs) and mandates consumption from grid-connected renewable sources. 4. Viability Gap Funding (VGF) scheme has been launched specifically for offshore wind energy projects. How many of the statements given above are correct?
Explanation
Statement 1 is correct: The Green Energy Corridor Scheme funds new transmission lines and sub-station capacity for renewable power evacuation. Statement 2 is correct: FDI up to 100 percent is permitted under the automatic route. Statement 3 is incorrect: The RCO is applicable to 'all designated consumers under the Energy Conservation Act 2001' and includes 'specified quantum of consumption from Decentralized Renewable Energy sources', not just grid-connected. Statement 4 is correct: A VGF Scheme for Offshore Wind Energy Projects has been launched. Therefore, three statements (1, 2, and 4) are correct.
Which of the following policies and rules related to wind energy development were issued/notified in 2023, as per the article? 1. National Repowering and Life Extension Policy for Wind Power Projects 2. Offshore Wind Energy Lease Rules 3. Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules 4. Revised Guidelines for installation of prototype wind turbine models Select the correct answer using the code given below:
Explanation
Statement 1 is correct: The 'National Repowering and Life Extension Policy for Wind Power Projects, 2023' was issued. Statement 2 is correct: The 'Offshore Wind Energy Lease Rules, 2023' were notified on 19th December 2023. Statement 3 is incorrect: The 'Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022' were notified on 06th June 2022. Statement 4 is incorrect: The 'Revised Guidelines for installation of prototype wind turbine models' were issued on 12th June 2025. Therefore, only statements 1 and 2 were issued/notified in 2023.
India has made significant strides in wind energy capacity, supported by a robust policy framework. Evaluate the effectiveness of recent government initiatives in accelerating the development of wind energy in the country.
Approach: Introduce India's wind energy progress, then discuss key policy initiatives and their impact, supported by data from the article, and conclude with a balanced assessment.
Model Answer Framework
Introduction
India's achievement of 57,443 MW installed wind capacity by June 2026 and its 4th global rank underscore its commitment to renewable energy. This progress is largely driven by a comprehensive and proactive policy framework.
Key Answer Dimensions
Policy Support for Infrastructure & Investment
- Green Energy Corridor Scheme: Funds new transmission lines and sub-station capacity, crucial for evacuating renewable power from generation sites to consumption centers.
- 100% FDI under automatic route: Attracts significant foreign capital and technology, boosting project development and manufacturing.
- ISTS charge waiver: Reduces the cost of inter-state power transfer for projects commissioned by June 2025, enhancing market access for wind power.
Regulatory Framework for Market & Consumption
- RPO/RCO trajectories: Mandate renewable energy consumption for designated consumers, creating a sustained demand for wind power, including from decentralized sources.
- Green Energy Open Access Rules, 2022: Facilitates direct purchase of green energy by consumers with high demand, promoting market-driven growth.
- Green Term Ahead Market (GTAM): Provides a platform for efficient sale and purchase of renewable energy, improving market liquidity and price discovery.
Specific Sectoral Policies & Optimization
- Viability Gap Funding (VGF) for Offshore Wind: Addresses the high initial capital costs and risks associated with nascent offshore wind projects, crucial for tapping vast potential.
- National Repowering and Life Extension Policy for Wind Power Projects, 2023: Aims to optimize existing wind farms by replacing older, less efficient turbines with modern ones, enhancing capacity utilization.
- Offshore Wind Energy Lease Rules, 2023: Provides a clear regulatory framework for leasing offshore areas, streamlining project development.
Ensuring Financial Viability & Risk Mitigation
- Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) and dispatch against Letter of Credit (LC): These measures ensure timely payments to RE generators, improving their financial health and attracting further investment.
Data, Articles & Case Studies
India's installed wind capacity reached 57,443 MW by June 30, 2026.
India ranked 4th globally in wind energy installation as of December 31, 2025.
Wind power generation increased from 83 billion units in FY 2023-24 to 106 billion units in FY 2025-26, demonstrating policy impact.
States like Gujarat, Tamil Nadu, and Karnataka lead in capacity and generation, indicating successful regional implementation.
Conclusion / Way Forward
These comprehensive initiatives have created an enabling ecosystem, fostering growth, attracting investment, and addressing operational challenges, thereby significantly accelerating India's wind energy development and its broader renewable energy goals.
Despite India's impressive growth in wind power capacity, several challenges persist in fully harnessing its potential and ensuring a smooth energy transition. Discuss these challenges and suggest measures to further strengthen India's wind energy sector.
Approach: Begin by acknowledging India's wind energy progress, then identify and elaborate on key challenges, and finally propose concrete solutions and a way forward.
Model Answer Framework
Introduction
India's significant wind energy capacity (57,443 MW, 4th globally) demonstrates its commitment to a green future. However, realizing its full potential requires addressing persistent challenges in its development and integration into the national grid.
Key Answer Dimensions
Challenges in Wind Energy Development
- Land Acquisition and Site Availability: Identifying suitable land, especially for large-scale projects, faces hurdles related to land acquisition, environmental clearances, and local community resistance.
- Grid Integration and Intermittency: Wind power's intermittent nature necessitates robust grid infrastructure, advanced forecasting, and flexible generation sources or storage solutions to maintain grid stability.
- Financial Viability and Investment: Despite policy support, high upfront capital costs, fluctuating tariffs, and occasional payment delays from distribution licensees can deter private investment, particularly for new technologies like offshore wind.
- Technological Advancement and Domestic Manufacturing: While repowering policy exists, there's a need for continuous R&D in advanced turbine technologies, efficient O&M, and strengthening domestic manufacturing capabilities to reduce import dependence.
- Offshore Wind Development: High capital expenditure, complex logistics, lack of extensive domestic experience, and detailed resource assessment pose significant hurdles for tapping India's vast offshore wind potential.
Measures to Strengthen the Sector
- Strengthening Transmission and Storage: Invest in smart grids, battery energy storage systems, and pumped hydro storage to manage intermittency and improve grid stability and reliability.
- Streamlining Clearances: Implement single-window clearance mechanisms for land acquisition and environmental approvals to expedite project execution.
- Innovative Financing Mechanisms: Explore green bonds, blended finance, sovereign green funds, and risk mitigation funds to attract more private and international capital.
- Boosting Domestic Manufacturing and R&D: Incentivize local production of wind turbine components, promote R&D in advanced materials, offshore technologies, and O&M solutions.
- Policy Consistency and Long-term Vision: Ensure a stable and predictable policy environment, clear long-term targets, and effective implementation of existing rules like RPO/RCO and Green Energy Open Access.
- Community Engagement and Skill Development: Involve local communities in project planning to address concerns and ensure equitable benefits, alongside developing a skilled workforce for the wind energy sector.
Data, Articles & Case Studies
India's 4th global rank in wind energy installation (as of Dec 2025) and 57,443 MW capacity (as of June 2026) highlight the existing base.
Policies like VGF for Offshore Wind and National Repowering Policy are steps in the right direction, but require sustained focus and implementation.
Conclusion / Way Forward
Overcoming these challenges through strategic investments, policy refinements, technological innovation, and robust community participation is crucial for India to fully leverage its wind energy potential and achieve its ambitious renewable energy targets, ensuring a sustainable energy future.