This publication analyzes the performance of two states in the country—Karnataka and Tamil Nadu—in their efforts towards installing solar and wind energy. It attempts to distill the reasons for their success, albeit using two very different renewable energy programs. It also covers the major initiatives taken by the country in the form of policy and regulations including the formation of a full-fedged Ministry of New and Renewable Energy, the Electricity Act, 2003, the National Electricity Policy, 2005, the National Tariff Policy, 2006, Rajiv Gandhi Grameen Vidyutikaran Yojana, 2005, and Jawaharlal Nehru National Solar Mission (JNNSM).

Karnataka is one of the leading states in the installation of solar hot water systems with an installed area of about 2.3 million square meters. On the other hand, Tamil Nadu is a leader in wind energy exploitation with a total installed capacity of 5072 MW. The report focuses on lessons learnt from these states and provides specific recommendations to create a supportive environment in other states to promote and adopt renewables-based power. Apart from the program and policy dimensions, the report deals in detail with the Indian solar industry and carries out an assessment of solar technology from the point of view of its applications in the country.

The case studies establish that while the availability of good renewable energy resources is a key determinant behind the success of the programs and other important factors include a favorable policy and regulatory environment, good grid network in the potential areas, land availability, and factors pertaining to retail technologies such as users' awareness, year-round demand, and established supply chains with reliable after-sales service. The success of wind power in Tamil Nadu underlines the crucial role played by its power utility, Tamil Nadu Electricity Board, especially in the formative years of wind power development in the state.

This study will help policy makers and academia in further strengthening knowledge solutions for renewable energy across other countries in Asia.

I would like to thank The Energy and Resources Institute (TERI), New Delhi, for undertaking the work. I would also like to thank P.W.C. Davidar, Secretary (Energy), Tamil Nadu; R. Christodas Gandhi, Principal Secretary, and Chairman and Managing Director, Tamil Nadu Energy Development Agency (TEDA); S. Ramesh, Chief Engineer, Karnataka Power Corporation Ltd (KPCL); and R. Raju, General Manager, Karnataka Renewable Energy Development Ltd (KREDL) for providing overviews of the energy and policy scenarios in their respective states as well as for sharing their experiences, perceptions, and thoughts on the subject.

I thank the wide range of stakeholders who have supported this study, especially solar system users including Bosch India Ltd, Bangalore, Hotel Sai Renaissance, Bangalore, MS Swaminathan Research Foundation, Chennai, TEDA, and KREDL; renewable energy financing organizations including Indian Renewable Energy Development Agency (IREDA) and Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFIDC), Chennai; and electricity distribution companies including Tamil Nadu Electricity Board (TNEB), Chennai and KPCL, Bangalore. Thanks are also due to Industrial and Technical Consultancy Organization of Tamil Nadu (ITCOT), BGR Energy Systems Ltd, and Indian Wind Turbine Manufacturers Association (IWTMA) in Chennai for their valuable insights on the state level policies.

Hun Kim

Country Director

India Resident Mission