The potential of main renewable energy sources such as wind, solar and small hydro is confined to few states and that too in certain areas. Under an assignment from the Ministry of New and Renewable Energy, the Power Grid Corporation of India Ltd. (PGCIL) has prepared a report for transmission infrastructure development for the likely renewable power capacity addition in the identified areas of eight renewable resource rich states namely Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Tamil Nadu and also Jammu & Kashmir. The report estimates that during 12th Five Year Plan period upto 2017 around 42 GW (30 GW by wind, 10 GW by solar and 2 GW by small hydro) renewable energy capacity would be added.
The Ministry of New and Renewable Energy in collaboration with the Ministry of Power has initiated follow up on the findings of the report. It has entered into a Joint Declaration of Intent with the Federal Ministry for Economic Cooperation and Development of the Federal Republic of Germany on 11 April 2013 to foster increased use of renewable energy by integrating additional renewable energy generation capacity with the national grid.