Measures to facilitate private sector participation in setting up of the renewable energy projects

• Fiscal and financial incentives for grid as well as off-grid/ decentralized systems, such as, capital/ interest subsidy/ generation based incentive, accelerated depreciation, nil/ concessional excise and customs duties;

• Generation Based Incentives Scheme introduced for Wind power and Solar Power to attract private investment by Independent Power Producers not availing Accelerated Depreciation benefit.

• Directives under Electricity Act 2003 to all States for fixing a minimum percentage for purchase of electricity from renewable energy sources;

• Preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year.

• Jawaharlal Nehru National Solar Mission initiated in January 2010 to enable large scale capital investment in solar energy applications.

• Amendment in National Tariff Policy to enable Solar specific RPO;

• Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission;

• Wide publicity on the use and utility of renewable energy through electronic and print media, etc. 

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