The Minister of New and Renewable Energy, that renewable energy has the potential to be cost effective with advancement in technologies and economies of scale. Power generation from renewable is at present generally more expensive than that from conventional sources. While cost of power generation from wind, biomass and small hydro are comparable with cost of power from conventional sources, solar power may take some more time to achieve grid parity.
The total installed capacity of renewable energy based power in the country is 26,267 MW. A capacity addition of 30,000 MW is proposed from renewable energy during the 12th Plan period. The Ministry is supporting research in various renewable energy technologies for improvement in efficiency, reduction in cost and to develop new applications.