India is abundantyl gifted with a variety of renewable energy sources; however not all states are endowed with same level of renewable energy sources. The enactment of the Electricity Act 2003 (EA 2003) stimulated the development of RE-based power generation by mandating State Electricity Regulatory Commissions (SERC) with the responsibility to promote RE generation within the state.

With increasing prices of fossil fuels across the globe, harnessing of renewable energy resources has assumed significance like never before. The Electricity Act, 2003 has several enabling provisions for promotion of renewable energy resources. However, renewable energy sources such as wind, small hydel, biomass etc are site specific resources, and the policies for promotion have been essentially driven by State specific requirements.

A robust transmission network is essential for power market operations. Experts have recommended that the market reforms should start with transmission and not generation. Transmission system issues need to be accorded the highest priority in the market development initiative.