This paper gives an idea about introducing renewable energy for ship propulsion. The present scenario is that fuel prices are increasing day by day and IMO tier-II regulations should be met for all new ships. As per tier II regulations, 20 % of reduction in NOX in the ECA areas should be met. Regulations on energy efficiency for ships is to be made mandatory and all new ships are to satisfy the Energy Efficiency Design Index (EEDI). The Ship Energy Efficiency Management Plan (SEEMP) should be followed for all existing ships. The aim of this paper is to use natural energy / Renewable energy resources like wind and movement of water to get the desired power to propel the ship. Tunnel pipes with turbines installed at the bottom of the ship produce power for domestic use onboard and by using Parafoil Kites, thrust is produced to pull the vessel in the forward direction without running the main engine in ballast condition. Usage of Kites onboard ships are soon going to be proven technology which can be installed in any existing ships as well as new ships. A technical analysis is carried out to meet the installed power. Nomenclatures: C= chord length of kite (meter) X= horizontal distance along which thickness of sections are taken (meter) Y= thickness at particular X value (meter). Vh =wind speed at required height (meter/sec) VO = wind speed at 10m height (meter/sec) L = lift force (Newtons) Taf = total aerodynamic force (Newtons) Ct = towing cable tension (the value is Equal to value of Taf) (Newtons) ɵ= incidence angle of wind/Angle of attack (degree) w = wind velocity (meter/sec) K c = application of center of forces Cl – lift coefficient Cd – drag coefficient ρ=Density of air (tones/m3) T=Thrust force (Newtons) P=power (Watts) ϴ=Angle of attack (45 degree)