Solar Power Target Reset to One Lakh MW
Year End Review - Solar Power
Target Reset to One Lakh MW;
Several States Witness Silent Revolution of Rooftop Solar Power Generation;
National Wind Energy Policy Brought in; PM Launches International Solar Alliance ;
56 Solar Cities in the Offing; One Lakh Solar Pumps for Irrigation; Renewable Energy Law to be Enacted
Several States Witness Silent Revolution of Rooftop Solar Power Generation;
National Wind Energy Policy Brought in; PM Launches International Solar Alliance ;
56 Solar Cities in the Offing; One Lakh Solar Pumps for Irrigation; Renewable Energy Law to be Enacted
Year
End Review –MNRE
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India is running the largest
renewable capacity expansion programme in the world. The government is aiming
to increase share of clean energy through massive thrust in renewables. The
year started with Prime Minister Shri Narendra Modi’s statement “India is
graduating from Megawatts to Gigawatts in Renewable Energy production.
The quote itself set up the higher expectation of clean energy generation in
the country. The target of 20,000 Mw of solar power proposed to be installed in
the country has been reset by the NDA government to achieve five time more at
one lakh mw of solar power by 2022. The target, which looked
overambitious, now seems to be within the realms of reality with several States
already witnessing silent revolution on rooftop solar power generation with the
launch of net metering in the country. As on 31.10.2015, cumulative capacity of
about 38 GW of grid-interactive renewable energy capacity has been installed in
the country. Confident by the growth rate in clean energy sector, the Government
of India in its submission to the United Nations Frame Work Convention on
Climate Change on Intended Nationally Determined Contribution (INDC) has stated
that India will achieve 40% cumulative Electric power capacity from non-fossil
fuel based energy resources by 2030 with the help of transfer of technology and
low cost International Finance including from Green Climate Fund.
The Centre has taken several initiatives to
increase the uptake of renewable energy through policy initiatives including
enactment of a National off shore Wind Energy Policy and throwing support
behind generation-based incentives and accelerated depreciation.
Besides the ongoing policies
and programmes of the Government in Renewable Energy sector, several
policy measures initiated recently by the Government to achieve this up-scaled
target, inter-alia, include suitable amendments to the Electricity Act and
Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and
for providing Renewable Generation Obligation (RGO); setting up of exclusive
solar parks; development of power transmission network through Green Energy
Corridor project; identification of large government complexes/ buildings for
rooftop projects; provision of roof top solar and 10 percent renewable energy
as mandatory under Mission Statement and Guidelines for development of smart
cities; amendments in building bye-laws for mandatory provision of roof top
solar for new construction or higher FAR; infrastructure status for solar
projects; raising tax free solar bonds; providing long tenor loans; making roof
top solar a part of housing loan by banks/ NHB; incorporating measures in
Integrated Power Development Scheme (IPDS) for encouraging distribution
companies and making net-metering compulsory and raising funds from bilateral
and international donors as also the Green Climate Fund to achieve the target.
The details of year round
achievements of the Ministry of New & Renewable Energy are as follows:
UPSCALING OF RE TARGETS:
The Government has up-scaled the target of renewable energy capacity to 175
GW by the year 2022 which includes 100 GW from solar, 60 GW from wind,
10 GW from bio-power and 5 GW from small hydro-power. Stepping up
capacity target under the Jawaharlal Nehru National Solar Mission
(JNNSM) by five times now India is aiming to generate reaching 1,00,000 MW
solar power by by 2022. The target will principally comprise of 40 GW Rooftop
and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects. With
this ambitious target, India will become one of the largest Green Energy
producers in the world, surpassing several developed countries. The total
investment in setting up 100 GW will be around Rs. 6,00,000 crore.
GREEN POWER CAPACITY INCREASED:
A total of 2,311.88 MW of grid-connected power generation capacity
from renewable energy sources like solar and wind has been added so far this
fiscal in the country. The government has set a target of 4,460 MW of power
generation capacity addition this fiscal from renewable energy sources,
including solar, wind and small-hydro. During the first seven months of the
fiscal, 827.22 MW of solar power generation capacity was added, taking the
cumulative electricity generation capacity from the source to 4,579.24 MW. The
Centre is aiming to add 1,400 MW solar power generation capacity during this
fiscal. Similarly, 1,234.11 MW wind power generation capacity was added during
the period, taking cumulative electricity generation capacity from this
renewable source to 24,677.72 MW. The government has set a target of adding
2,400 MW of wind power generation capacity in 2015-16. Under the small-hydro
category, 106.55 MW generation capacity was added till October, taking the
total generation capacity in this segment to 4161.90 MW. The Centre has set a
target of adding 250 MW of small-hydro power generation capacity this fiscal.
In the bio-power (biomass & gasification and biogases cogeneration)
segment, 132 MW of generation capacity was added till October end this fiscal,
taking the total capacity to 4550.55 MW in this segment. The government has set
a target of adding 400 MW capacity from these sources. In waste-to-power
segment, 12 MW capacity has been created till October compared to a target of
10 MW for the entire 2015-16. Now, India has 127.08 MW of power generation
capacity under this category. The country's total grid-connected power
generation capacity from all the above mentioned renewable sources was
3,8096.49 MW at the end of October. The physical progress of achieving
these targets is as follows:
Scheme wise Physical Progress in 2015-16 (During the month of October
2015)
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Sector
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FY 2015-16
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Cumulative
Achievements
(as on 31.10.2015)
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Target
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Achievement
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I. Grid
Interactive Power (Capacities in MW)
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Wind Power
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2400.00
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1234.11
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24677.72
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Solar Power
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1400.00
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827.22
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4579.24
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Small Hydro Power
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250.00
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106.55
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4161.90
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Bio Power
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400.00
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132.00
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4550.55
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Waste to Power
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10.00
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12.00
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127.08
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Total
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4460.00
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2311.88
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38096.49
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II. Off Grid Captive Power
(Capacities in MWEQ)
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Waste to Energy
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10.00
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0.50
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146.51
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Biomass Cogeneration
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60.00
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10.50
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602.37
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Biomass Gasifies
-Rural
-Industrial
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2.00
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0.20
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18.51
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6.00
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8.67
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160.72
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Aero-Generators/Hybrid System
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0.50
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46.50
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280.85
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Water Mills/Micro hydel
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2.00
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0.00
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7.21
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Total
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130.50
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66.50
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1228.48
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III. Other Renewable Energy System
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Family Biogas Plants (Numbers in lakhs)
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1.10
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0.15
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48.28
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Solar Water Heating- Coll. Areas
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-
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0.00
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8.90
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REINVEST 2015:
First Renewable Energy Global Investment Promotion
Meet & Expo (RE - INVEST) was organised with the
intent of providing a platform to the global investment community to connect
with stakeholders in India. The Central Theme of REINVEST 2015 is to increase growth
of renewable energy and energy efficiency in the country. The Meet showcased
the Government’s commitment in the development and scaling up of renewable
energy in a socially, economically and ecologically sustainable manner to meet
the national energy requirement. 118 exhibitors, 200 global investors and
financers 202 speakers and 2500 delegates from 32 countries have participated
in the event. The objective of World’s largest renewable energy financing meet
is to showcase India as an investment destination for renewable energy and to
encourage investors for setting up projects and manufacturing facilities of
Renewable Energy equipment & products in India. The Ministry received total
of 2,73,000 MW green commitments including 62,000 MW of renewable manufacturing
in the event. On the occasion, 14 banks and financial institutions, 8 PSUs and
private manufacturers, 15 private sector companies gave 70,000 MW of renewable
finance Commitments.
INTERNATIONAL SOLAR ALLIANCE:
Prime Minister Shri Narendra Modi launched an
International Solar Alliance (ISA) at the CoP21 Climate Conference in Paris on
30thNovember as a special platform for mutual cooperation among 121
solar resource rich countries lying fully or partially between Tropic of Cancer
and Tropic of Capricorn. The alliance is dedicated to address special energy
needs of ISA member countries. The new body of Secretariat will be hosted by
Government of India. The Centre will provide land and $30 million to form a
secretariat for the Alliance, and also support it for five years. The
participants, mostly in Latin America and Africa but also including the US,
China, and France, would work together to increase solar capacity across
emerging markets.
LOWEST SOLAR TARIFFS:
In an e-reverse auction
conducted by NTPC on 03.11.2015 for 500 MW (10 projects of 50 MW each) to be
set up at Ghani Solar Park in Andhra Pradesh under National Solar Mission,
Phase-II, Batch-II, Tranche-I of Ministry of New & Renewable Energy, Govt.
of India, NTPC received the lowest tariff of Rs. 4.63 per unit of
electricity. Total 30 bids were received totaling to 5500 MW capacity.
INTRA STATE
TRANSMISSION SYSTEM:
In July 2015, the Cabinet has
approved the creation of an intra state transmission system in the States of
Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh,
Maharashtra and Rajasthan at an estimated cost of Rs 8548.68 crore with Government
of India contribution from National Clean Energy Fund (NCEF) of Rs 3419.47
crore (40 percent of the total estimated cost of project). The activities
envisaged under the project includes establishment of 48 new Grid sub-stations
of different voltage levels with total transformation capacity around 17100 MVA
(Mega Volt Ampere) by installing over 7800 ckt-kms (Circuit Kilometers) of
transmission lines in these seven states. The project is proposed to be
completed within a period of three to five years. The cost on creating
intra-state transmission system is proposed to be met through KfW loan (40
percent of the total cost), NCEF grant (40 percent of the total cost) and the
remaining 20 percent as State contribution. These States are rich in
renewable resource potential and large capacity renewable power projects are
planned there. Creation of an intra state transmission system will facilitate
evacuation of renewable power from generation stations to load centres.
SOALR CITIES:
The Ministry has approved 56 solar cities projects against the target of 60
solar cities under the Development of Solar Cities Programme. The
Government has also approved a Scheme for setting up of 25 Solar Parks,
each with the capacity of 500 MW and above and Ultra Mega Solar Power Projects
to be developed in next 5 years in various States and will require Central
Government financial support of Rs 4050 crore. These parks will be able to
accommodate over 20,000 MW of solar power projects. As on date, 27
parks with capacity of about 18000 MW in 21 states have been sanctioned.
SOLAR PROJECTS UNDER NATIONAL
SOLAR MISSION:
The Union Cabinet gave its approval for the implementation of the scheme
for setting up of 15,000 MW of Grid-connected Solar PV Power projects
under the National Solar Mission through NTPC/ NTPC Vidyut Vyapar Nigam
Limited (NVVN) in three tranches namely, 3000 MW under Tranche-l under
mechanism of Bundling with Unallocated Coal based Thermal Power and fixed
levellised tariffs, 5,000 MW under Tranche-ll with some support from Government
to be decided after getting some experience while implementing Tranche-l and
balance 7,000 MW under Tranche-Ill without any financial support from the
Government. Successful completion of additional 15,000 MW capacity of
Grid-connected solar PV power generation projects, mainly in the private
sector, with largely private investment, under the National Solar Mission would
accelerate the process of achieving grid tariff parity for solar power and also
help reduce consumption of kerosene and diesel, which is presently in use to
meet the unmet demand.
The Government approved Solar
Energy Corporation of India (SECI) to apply to the Registrar of
Companies for converting it into a Section 3 company and renaming it as
the Renewable Energy Corporation of India (RECI). After this, SECI will
become a self-sustaining and self-generating organization. It will engage
itself in owning solar power plants generating and selling power and in other
segments of solar sector activities, including manufacturing of solar products
and materials. RECI will take up development of all segments of renewable
energy namely, geo-thermal, off-shore wind, tidal etc. apart from solar energy.
RE PROJECTS
IN PRIORITY SECTOR LENDING:
In a communication to all central government ministries and departments,
PSUs and organizations, state governments, educational institutions, the
Ministry said the price of solar power has fallen drastically in the last two
to three years and it is economical to generate the power through grid
connected solar roof top systems for consumers in states where tariff is more
than Rs 7 per unit. Pay back time is about 5-6 years and the life of plant is
25 years. The letter said that the incentive include 15% government subsidy for
selected categories, accelerated depreciation benefits for industrial and
commercial buildings besides a slew of incentives.
SOLAR PUMPS:
The government has implemented a scheme to install one
lakh solar pumps for irrigation and drinking water through
State Nodal Agencies and NABARD. These pumps helped lakhs of farmers to
increase output, income and also provide drinking water. According to
estimates, drinking water problems will be solved for more than 7.6 lakh
families through solar pumps for drinking water. MNRE provides 30% capital
subsidy to farmers for installation of solar pumps for irrigation purpose
through state nodal agencies. The state governments can give additional subsidy
through own funds. The government presented 40% subsidy with mandatory loan to
farmers for irrigation purpose through NABARD. The ministry has issued
supplementary guidelines for 1,00,000 solar pumps during 2014-15 and Rs 353.50
crore was released to various agencies.
UNNAT CHULHA ABHIYAAN:
The Unnat Chulha Abhiyan
envisages developing and promoting deployment of efficient and cost effective
improved biomass cook-stoves in the country. The programme involves
demonstration of the various models of biomass cook-stoves both natural and
forced draft types for domestic and large scale community cooking on cost
sharing basis. The programme aims at providing improved cook stoves for clean
cooking thus saving lives of thousands of people in the country. 3.5 lakh cook
stoves have been sanction under the scheme last year.
OTHER SCHEMES LAUNCHED FOR ACHIEVING SOLAR ENERGY TARGETS:
Ø Off-grid
Rooftop: It is proposed to set up 40 GW
solar rooftop programmes where grid connectivity is already exist. 15%
Government subsidy for non-commercial and non-industrial categories for using
domestic solar panels would be provided.
Ø Solar
Parks: The Government has approved on 10th December,
2014 a Scheme for setting up of 25 Solar Parks, each with the capacity of 500
MW and above and Ultra Mega Solar Power Projects to be developed in next 5
years in various States and will require Central Government financial support
of Rs 4050 crore. These parks will be able to accommodate over 20,000 MW of
solar power projects. As on date, 27 parks with capacity of about 18000 MW
in 21 states have been sanctioned.
Ø Setting
up of over 300 MW of Grid-Connected Solar PV Power Projects by Defence
establishments and Para Military Forces with viability gap funding. More
than 150 MW projects have been sanctioned under the scheme.
Ø Implementation
of Scheme for setting up 1000 MW of Grid Connected Solar PV Power projects by
CPSUs and GOI organization’s with Viability Gap
Funding in three years period from 2015-16 to 2017-18. About 100 MW have been
allocated to various CPSUs under the scheme.
Ø Scheme
for Development of Grid Connected Solar PV Power Plants on Canal Banks and
Canal Tops: MNRE launched a Scheme for Development of Grid
Connected Solar PV Power Plants on Canal Banks and Canal Tops in the country
during the 12th Plan period at an estimated cost of Rs. 975 crore and with
Central Financial Assistance (CFA) of Rs. 228 crore. The Solar PV Power Plants
on Canal Banks and Canal Tops with 50 MW capacities under each category have
been approved to 8 States (Gujarat, Andhra Pradesh, Karnataka, Kerala, Uttar
Pradesh, Punjab, Uttarakhand and West Bengal).
Ø Scheme
for Decentralized Generation of Solar Energy Projects by Unemployed Youths
& Farmers. It is expected that about 10
GW solar projects would be setup. Innovative Financing of such projects could
be possible as equity is being put up by the state, local bodies and
entrepreneurs.
Ø New
loan scheme to promote rooftop solar power projects announced by IREDA. The
scheme will provide loans at interest rates between 9.9 and 10.75 percent to
system aggregators and developers.
Ø Surya
Mitra Scheme launched for creating 50,000
trained personnel within a period of 5 years (2015-16 to 2019-20). The
course content has been approved by the National Council of Vocational Training
as per the National Skill, Qualification Framework. As on 30.9.2015, a total of
27 programmes involving Rs 17 crore have been sanctioned to SNAs by NISE.
In 2015-16, 70 programmes will be conducted against which 27 programmes have
started. As on 30.9.2015, about 360 Surya Mitras were trained under the
scheme
POLICY INITIATIVES
Ø National
Offshore Wind Energy Policy, 2015 : Under
this Policy, the Ministry of New & Renewable Energy (MNRE) has been
authorized as the Nodal Ministry for use of offshore areas within the Exclusive
Economic Zone (EEZ) of the country and the National Institute of Wind Energy
(NIWE) has been authorized as the Nodal Agency for development of offshore wind
energy in the country and to carry out allocation of offshore wind energy
blocks, coordination and allied functions with related ministries and agencies.
It would pave the way for offshore wind energy development including, setting
up of offshore wind power projects and research and development activities, in
waters, in or adjacent to the country, up to the seaward distance of 200
Nautical Miles (EEZ of the country) from the base line. The policy will
provide a level playing field to all investors/beneficiaries, domestic and
international. It is planned to set up the first offshore wind power project
off the Gujarat coast soon.
Ø Wind
Atlas, 2015 Launched: A wind Atlas having information at 100 m height has been
launched. It’s a GIS based software tool which will help not only the
developers but also policy planners.
Ø Restoration
of Accelerated Depreciation Benefits for Wind Power Projects:
After significant harm was done to the wind sector due to withdrawal of AD with
effect from 1.4.2012, it has been restored on 18.7.2014. This decision of the
Government will help in creating a robust manufacturing base for wind turbines
in the country.
Ø Establishment
of PACE Setter Fund: U.S. and India have signed a
MoU to establish PACE Setter Funds with a contribution of US$ 4 million (INR 25
crores) from each side for providing grants for seed capital for innovative
clean energy projects. The PACE Setter Funds has been formally launched on 19th
August, 2015 in New Delhi.
Ø State
Electricity Regulatory Commissions (SERCs) of twenty States have notified
regulatory framework on net-metering and feed-in-tariff to encourage rooftop
solar plants.
Ø Inclusion of Renewable Energy
Projects in Priority Sector Lending Norms of Commercial Banks: Reserve Bank of India vide its
circular dated 23rd April, 2015 on ‘Priority Sector Lending:
Targets and Classification’ has issued revised guidelines for all scheduled
commercial banks making significant inroads for renewable energy in the
priority sector lending:
Ø Inclusion of renewable energy
in categories of priority sector, in addition to existing categories.
Ø Bank loans up to a limit of Rs
15 crore to borrowers for purposes like solar based power generators, biomass
based power generators, wind mills, micro-hydel plants and for non-conventional
energy based public utilities viz. street lighting systems, and remote village
electrification. For individual households, the loan limit will be Rs 10 lakh
per borrower.
Ø Investments in RE is on
Automatic route. No RBI/FIPB approval required.
Ø Automatic approval for up to
74% foreign equity participation in a JV. Liberalized foreign investment
approval regime. 100% foreign investment as equity is permissible with the
approval of Foreign Investment Promotion Board (FIPB). Various chambers of
commerce and industry associations offer guidance on partners
Ø PPAs have been standardized
for projects under JNNSM.
Ø Land procurement- Many states
have provided deemed Non Agricultural status for land purchased for RE
projects.
Ø Clean Energy Fund: Coal Cess
has been increased from Rs 100 to Rs 200/ton which will make available around
Rs 12000 crore/year for supporting and incentivizing development of RE in the
country.
Ø Enforcement of Renewable
Purchase Obligations has been strengthened by recent judgement of Supreme Court
for captive power generators and Appellate Tribunal Judgement on fulfilment of
RPO obligation by State regulators.
Ø Net-metering schemes has been
rolled out in majority of States which will help in meeting 40 GW rooftop grid
connected solar projects.
Ø Must Run Status for RE
projects in most of the states
Ø Fiscal incentives in the form
of Accelerated Depreciation for wind and solar by Central Govt. and refund of
stamp duty, refund on Value Added Tax (VAT) & Goods and Service tax (GST)
by some State Govts.
POLICY
AMENDMENTS UNDERWAY:
Ø National Wind Energy Mission
(Proposed): Initiated the process of establishing
National Wind Energy Mission. The setting up of a Mission would help in (a)
achieving the targets of 12th Plan and energy generation from renewable energy
as set under NAPCC, and (b) addressing the issues and challenges which the wind
sector is faced with, such as precise resource assessment, effective grid
integration, improvement in technology and manufacturing base, to maintain its
comparative advantage in the wind sector.
Ø Renewable
Generation Obligation (Proposed): There is a policy proposal under
consideration that all conventional power plants
should have a minimum renewable generation obligation.
Ø Amendment
in Electricity Act, 2003 (proposed)
· Proposed
inclusion of “specific mention of penal provisions for non-compliance of RPO
including financial penalty and punishment”.
· Suggested
amendment in the tariff policy to include a RPO trajectory reaching at minimum
15 % of the total electricity mix by March 2019 with solar RPO of Minimum 8%
and support by states. It implies that there is a special category for solar
RPO and other renewable energy sources have been clubbed in non-solar category.
· To
allow generating / purchasing and bundling of renewable and allow pass through
to such power plants where generation and transmission assets are fully
depreciated.
Ø Draft
RE Act 2015: In addition to the existing provisions in the
above act. there is a need for a Renewable energy act in India to facilitate
increase in the use of renewable energy for all relevant applications including
off-grid, heat and transport in an effective and coordinated manner,
which is well integrated with the energy
and electricity system, and to do so by
developing a supportive ecosystem, laying down an institutional structure, and
by creating framework for transparent and effective incentive structure.
In the given context, increasing the share
of RE in the energy mix will require
enabling policies to stimulate changes not only
in policies related to RE deployment
but also in policies related to the
planning of the complete energy system. The mandatory provisions after
the enactment of Renewable energy Law will provide the requisite backbone
framework to facilitate increase in the use of renewable energy.
OTHER INITIATIVES :
INTERNATIONAL
SUPPORT:
The
Minister is seeking cooperation from other countries both on technical and
financial side to promote the generation of power from renewable energy
sources. On technical side, National Institute of Solar Energy (NISE) is
collaborating with premium institutions/ laboratories of USA, Japan and Germany
in the fields of performance evaluation, long term operational reliability and
indoor-performance testing of different technology modules. Similarly, National
Institute of Wind Energy (NIWE) in collaboration with specialized institutions
of Denmark; USA, Spain and Germany is working in the areas of wind forecasting,
offshore wind, aero-structural design, training on testing inter-laboratory
comparisons etc. On the financial side, Indian Renewable Energy Development
Agency (IREDA) is also operating Line of Credits from various Bilateral/
Multilateral institutions for further extending the credit to viable renewable
energy projects in the country.
A Memorandum
of Understanding (MoU) between India and France on 10th April, 2015 to
establish the basis for a cooperative institutional relationship to encourage
and promote technical bilateral cooperation on the new and renewable energy
issues, on the basis of mutual benefit, equality and reciprocity. Another Memorandum
of Understanding (MoU) on Renewable Energy Cooperation was signed between India
and Seychelles in March, 2015, to strengthen, promote and develop
renewable energy cooperation between the two countries on the basis of equality
and mutual benefit. The MoU will also help in strengthening bilateral
cooperation between the two countries in the field of renewable energy. U.S.
and India have signed a MoU to establish PACE Setter Funds with a
contribution of US$ 4 million (INR 25 crores) from each side for providing
grants for seed capital for innovative clean energy projects. The PACE Setter
Funds has been formally launched on 19th August, 2015 in New Delhi.
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