Increasing demand of energy and negative impacts of fossil fuels on the environment has emphasized the need of harnessing energy from renewable sources. The world is passing through a critical period when conventional and exhaustible sources of energy are getting depleted at a very fast rate, which has focused attention to the non-exhaustible and renewable sources of energy. Renewable energy resources, which the country has in abundance, such as solar, wind, biomass, small hydro, etc. are non-depletable, and can effectively meet energy demand and are environmentally benign. They can create a significant impact in the generation of grid electricity, as progress in wind power, solar, small hydro, biomass power and bagasse co-generation has demonstrated in the last few years. About 5700 MW of power generating capacity based on renewable energy sources (RES) has been installed in the country so far. This constitutes about 5% of the total installed capacity [1].