Subsidies and incentives to renewable energy in India
Student name: Ms Ana
Guide: Mr Amit Kumar
Year of completion: 2014
Host Organisation: Alliance for an Energy Efficient Economy (AEEE)
Supervisor (Host Organisation): Dr Bhaskar Natarajan
Abstract: To be based on a sustainable model of development it is important to robust economic and political structures
support it. This cannot be accomplished without the support of polity which inhabits a democracy. It cannot be
denied that renewable energy today not only steps in to mitigate climate change but is essential to supplement,
particularly the attempt of developing countries to become energy sufficient. Induction of renewable energy with
the help of subsidies and incentives is essential to overcome challenges in the nascent which come assorted,
especially in the form of technology acceptance and the high prices associated with it. It is foreseeable that
these factors make realisation of economies of scale to achieve market transformation difficult. Thus, in order to
become a self sustaining political economy, it is important to ensure that the provisions of subsidies and
incentives not only address but also promote the interests of the target beneficiaries. It is useful to note that to
end subsidies and incentives is a global goal. In this light, proving subsidies and incentives to renewable energy
may go a long way if parameters to evaluate periodic milestones are set well before too much is invested
without envisioning an impactful concrete end. In this regard the aspect of affordability of the end user may well
be taken into account in order to provide an overall framework which has the broad support of citizens that is
robust to changes in governments, and overall economic conditions. This holds even truer for developing
countries that in the global discourse of climate change are ever trying to cope, mitigate and adapt to the same.
This project aims to understand how subsidies and incentives are put in place for renewable energy in India,
both for grid interactive and decentralised renewable and review provisions in this direction.
Keywords: Affordability, Energy, Incentives, Renewable Energy, Subsidies
