The Ministry of New and Renewable Energy in an effort to mitigate the energy problems of cities and to provide alternative energy solutions for industrial and commercial establishments has identified and has been focusing on:

• Solar energy
• Energy recovery from urban wastes
• Energy recovery from industrial waste
• Biomass and co-generation 

These technologies offer huge investment and development opportunities for the industry. Moreover, the National Solar Mission of the National Action Plan on Climate Change envisages 20,000 MW capacity addition by 2022, presents huge opportunity in the renewable energy sector.

A sound policy framework holds the key to the success of Renewable Energy (RE) initiatives. The electricity policies in the last few years have talked about the need and priority to promote RE.

The Electricity Act (2003) has several enabling provisions, with a view to promote accelerated development of non-conventional energy based power generation.

The National Electricity Policy (2005) stipulates that progressively the share of electricity from non-conventional sources would need to be increased; the purchase of electricity by distribution companies shall be through competitive bidding process. Considering the fact that it will take some time before non-conventional technologies compete, in terms of cost, with conventional sources, the commission may determine an appropriate deferential in prices to promote these technologies.

The New Tariff Policy (2006) mandates each State Electricity Regulatory Commission to specify a Renewable energy Purchase Obligation (RPO) by distribution licensees in a time-bound manner.

National Rural Electrification Policies (2006) goals include provision of access to electricity to all households by the year 2009, quality and reliable power supply at reasonable rates, and minimum lifeline consumption of one unit/ household/day as a merit good by year 2012.