1 Introduction

"Power for all by 2012" , was the stated goal of the Government of India (GOI) to ensure that each and every household of India irrespective of whether it was an urban or a remote rural one had access to affordable power supply by 2012. However, to this day one-third of rural households and 6% urban households are still unelectrified.1

Currently most of the energy needs in the country are met through fossil fuels. Coal, gas, and DSL-fired power plants account for 66% of the country's total electricity-generating capacity. The contribution of renewable energy is as low as 12% in the overall energy mix (total overall installed capacity of 201.6 GW as on 30 April 2012).2 Across all renewable energy sources connected to the national grid, wind energy accounts for 69.5%.3 Tamil Nadu is the leading producer of wind energy with a total installed capacity ranging from 6987.60 MW to 5072.80 MW followed by Gujarat, Maharashtra, Rajasthan and Karnataka.4

The government has made a serious commitment towards increasing the share of renewable energy in India's energy basket setting itself a target of 20 GW solar power generation by 2022 under the Jawaharlal Nehru National Solar Mission (JNNSM). Karnataka is also among the leading states in the installation of solar hot water systems with an installed area of about 2.3 million square meters.5 Against this backdrop, Asian Development Bank (ADB) has entrusted Tata Energy Research Institute (TERI) with the study "Solar and Wind Power Development in Karnataka and Tamil Nadu".

1 http://online.wsj.com/article/SB10001424052970203550304577136283175793516.html

2 http://www.cea.nic.in/reports/monthly/executive_rep/apr12/7.pdf

3 National Renewable Energy Achievements as on 31 July 2012. http://mnre.gov.in/mission-and-vision-2/achievements/ [Accessed 24 August 2012] www.indianwindpower.com/iw_energy_economy.php

4 Up to March 2012. http://cwet.res.in/web/html/information_yw.html, last accessed on 24 August 2012. Renewable Watch, Volume 1, No 1, November 2010, p. 80

5 GKS. "Solar Water Heaters in India: Market Assessment Studies and Surveys for Different Sectors and Demand Segments." 20 January 2010. http://mnre.gov.in/pdf/greentech-SWH-MarketAssessment-report.pdf, last accessed August 2010. http://kredl. kar.nic.in/ProgressReport.htm last accessed on 12 January 2010.

5 www.teda.in, last accessed on 26 August 2012