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MNRE Seeks Expanded Authority Over Renewable Energy Governance

The Ministry of New and Renewable Energy (MNRE) has proposed a significant expansion of its powers, urging a parliamentary panel to recognise it as the “Central Government” for all renewable energy matters under the Electricity Act 2003.

The proposal aims to redraw institutional boundaries between the MNRE and the Ministry of Power, which currently holds primary authority over electricity regulations, including grid-connected renewable energy. If accepted, the move would shift greater policy and administrative control of the renewable sector to MNRE.

In its submission, the ministry highlighted that as of January 31, 2026, India has installed 271.96 GW of non-fossil fuel capacity out of a total 520.50 GW. Of this, 263.18 GW comes from renewable sources, while 8.78 GW is contributed by nuclear energy. The government has set an ambitious target of achieving 500 GW of non-fossil capacity by 2030.

Despite this progress, the share of actual electricity generation from non-fossil sources remains around 25%. This gap is largely due to the intermittent nature of renewable energy and limited battery storage capacity, making coal-based power essential for ensuring consistent supply.

While MNRE acknowledged that a separate legislation is not required—since renewable energy is already integrated into the existing electricity framework—it emphasised the need for clearer institutional roles to improve governance and efficiency in the sector.

The ministry has sought a wide range of new powers, including the authority to design renewable energy markets, issue bidding guidelines for projects, and frame tariff principles for the Central Electricity Regulatory Commission (CERC). It also wants to guide the regulator on renewable-specific matters.

Additionally, MNRE has proposed taking a lead role in planning and monitoring Renewable Purchase Obligations (RPOs), which mandate distribution companies and large consumers to source a portion of their electricity from clean energy. Compliance with these targets has been inconsistent across several states.

The ministry has further called for closer coordination with the Central Electricity Authority (CEA) in framing regulations, and suggested that the National Committee on Transmission should operate under its guidance—areas that have traditionally fallen under the jurisdiction of the Power Ministry and CEA.

Overall, the proposal reflects MNRE’s push for greater control to streamline renewable energy governance, as India accelerates its transition towards a cleaner and more sustainable energy system.