A target of 10 000 MW capacity additions from renewables has been set for 2002 - 12 in India, of which 2600 MW has been achieved in the first three years of the Eleventh Plan. Projects aggregating to about 7400 MW are to be set up in next seven years.

The main issues are how renewable power projects can be made cost competitive, reliable, and the target can be achieved in next seven years. Mapping accurately the entire potential of renewable energy resources in the country and classify them to give maximum advantage in terms of capacity utilization has been emphasized.

Some of the major issues in renewable power generation include:
Classification of potential sites in each state
Intensifying RE capacity addition activities in a sustainable manner
Grid-power RE projects should be constructed with equipment following international/ national standards and code of practices.
The cost of electricity generation from renewable energybased power projects has to
be aligned with that of competing conventional sources.
The cost of equipment has to be benchmarked to international levels.
Expensive imports have to be replaced by indigenous development