Overview of Renewable Energy Business

Renewable energy is obtained from natural sources that replenish over time, such as solar, wind, hydro, geothermal, and biomass. Unlike non-renewable energy sources like petroleum, which are finite, renewable sources are abundant and can generate energy without depletion. The rising concerns over climate change, air pollution, and energy security have led to a surge in renewable energy adoption. Additionally, technological advancements have made renewable energy more cost-effective and efficient, making it a practical alternative to conventional energy sources.

Starting a Renewable Energy Business in India

India’s renewable energy sector is expanding rapidly, presenting numerous opportunities for businesses to invest and develop renewable energy projects. The country aims to achieve a renewable energy capacity of 450 GW by 2030, covering solar, wind, hydro, and other sources.

To support this growth, the government has introduced various policies and initiatives such as the National Solar Mission, the Solar Park scheme, and the Wind Energy Development Program. These initiatives offer incentives, including tax benefits, subsidies, and preferential tariffs for renewable energy projects.

Regulations and Acts Governing Renewable Energy

• Electricity Act, 2003

• National Tariff Policy, 2016

• National Renewable Energy Policy, 2022

• Companies Act, 2013

• Foreign Exchange Management Act, 1999

• Environment Protection Act, 1986

• Trademark Act, 1999

Types of Renewable Energy Technologies in India

1.       Solar Energy: India has vast solar energy potential due to year-round sunlight. Solar power can be harnessed through photovoltaic (PV) panels, solar thermal technology, and concentrated solar power (CSP) systems. The government set a target of 100 GW of solar capacity by 2022.

2.       Wind Energy: India ranks as the fourth-largest wind power market, with an installed capacity exceeding 41 GW as of 2021. Wind energy is primarily harnessed through turbines in coastal and hilly regions.

3.       Hydro Energy: India’s rivers and hilly terrain offer significant hydropower potential. It can be generated through large hydro projects, small hydro plants, and pumped storage facilities.

4.       Biomass Energy: With abundant agricultural and forestry waste, India has substantial biomass energy potential. Biomass can be utilized through biogas plants, biomass gasifiers, and similar technologies.

5.       Geothermal Energy: The Himalayan region presents opportunities for geothermal energy, which can be used through geothermal power plants and heat pumps.

6.       Tidal Energy: India’s extensive coastline provides potential for tidal energy generation using tidal stream turbines and barrage systems.

Essential Documents for Starting a Renewable Energy Business in India

Depending on the type of renewable energy business, specific documentation is required. Some standard documents include:

• Company Incorporation

• Articles of Association (AOA)

• Memorandum of Association (MOA)

• GST Registration

• Trademark Registration

• MSME Registration

• Shop and Establishment License

• Pollution NOC

• Permanent Account Number (PAN)

• Tax Deduction and Collection Account Number (TAN)

• Bank Account Details

• Loan Documents

• CEIG Approval

Process to Obtain the Renewable Energy Certificate

Businesses must apply to the Renewable Energy Certificate Registry of India. Applications can be submitted online or physically through the Central Agency using Format 2.1. The application should include details such as owner information, generation station data, accreditation certification, facility commissioning schedule, and other necessary information.

Upon submission, the applicant will receive a unique acknowledgment number, which will remain the same for all future project-related applications. The Central Agency will conduct a preliminary review of the application. The applicant must pay registration charges, and the review process is completed within two working days.

After the initial assessment, the Central Agency may request additional information or provide reasons for approval or rejection within two working days. The scrutiny is based on the following parameters:

• Valid Certification of Accreditation from a State Agency

• Commissioning date or proposed schedule

• Declaration that no Power Purchase Agreement has been signed at a preferential tariff

• Payment of registration fees

Once verified, the Central Agency issues a "Certificate for Registration" to confirm the applicant’s eligibility for Renewable Energy Certificates (RECs). This certificate assigns a unique project code for further correspondence. The entire registration process is usually completed within 15 days upon submission of all required documents. In case of rejection, the reasons will be communicated in writing.

If the registration is approved, the Central Agency will notify the following entities:

• The host State Agency

• The host State Load Despatch Center

• The Power Exchanges as per CERC REC Regulations