Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for newable energy generation and distribution projects subject to provisions of The Electricity Act, 2003.

Reasons to Invest-

• India has 5th largest power generation portfolio worldwide with a power generation capacity of 245 GW.
• Economic growth, increasing prosperity, a growing rate of urbanization and rising per capita energy consumption has widened access to energy in the country.
• Current renewable energy contribution stands at 31.70 GW of the total installed capacity of 245 GW in the country as on 31.03.2014.
• Wind energy is the largest renewable energy source in India. The Jawaharlal Nehru National Solar Mission aims to generate 20,000 MW of solar power by 2022, creating a positive environment among investors keen to tap into India’s potential.
• The country offers unlimited growth potential for the solar photovoltaic industry.

Government Initiatives-

• Liberal environment for foreign investment in renewable energy projects. The establishment of a dedicated financial institution – the Indian Renewable Energy Development Agency, makes for renewed impetus on the promotion, development and extension of financial assistance for renewable energy and energy efficiency/conservation projects.
• Provisions of Central Financial support for Small/Micro Hydro-Power Projects.
• Offshore Wind Energy policy that promotes deployment of offshore wind farms up to 12 nautical miles from coast.