Jammu and Kashmir the northern most state of India is blessed with immense potential for utilization of renewable energy. The state at present is fairly untapped in terms of energy utilization and thus venturing into this region would definitely prove to be profitable. The natural energy sources like sunshine, wind, vegetation, water flow, biomass and other biological wastes though abundantly available in the state yet are not being potentially harnessed resulting in very low per capita energy availability, deforestation and poor health. Renewable energy acquires a promising option not only for energy availability next view and of environment protection but also the socio-economic conditions of the people residing in these areas can be improved to a great extent. The hydroelectric power has tremendous potential for generation of electricity in the state because the topography of the state provides extensive network of canals and streams. This paper describes the resource potential and opportunity to enter the market and bring more renewable energy projects in the form of solar, biomass derived fuels, biogas and hydroelectric in the state. (C) 2011 Elsevier Ltd. All rights reserved.