The Indian wind power segement recorded its highest ever capacity addition in 2010-11. A total of 2,350 MW capacity was added during the year (accounting for about 16 per cent of the total capacity addition in the power sector and 74 per cent in the renewable segment) compared to the average capacity addition of slightly over 1,570 MW in the period between 2007-08 and 2009-10.

A market worth about Rs 300 billion exists for utility-scale solar power projects over the next three years in India. Also on offer is an estimated Rs 100 billion -Rs 150 billion worth of annual potential from the largely unexplored off-grid solar market for rural, industrial and urban demand.

The generation-based incentive (GBI) scheme for wind energy projects was launched by the Ministry of New and Renewable Energy (MNRE) to stimulate wind power generation rather than merely subsidise capacity creation.

The launch of the Jawaharlal Nehru National Solar Mission (JNNSM) in 2009 catapulted the Indian solar market into the global league. The mission's target of 20,000 MW by 2022 is among the biggest solar goals announced worldwide.

The policy environment over the past year has helped set the stage for a more competitive renewable energy market in India. The current capacity has been achieved largely due to supportive legal framework anchored in the Electricity Act, 2003, which has been complemented by capital subsidies, feed-in tarriffs (FiTs), accelerated depreciation and, more recently, generation-based incentives (GBI).