A NEW DAWN IN RENEWABLE ENERGY SECTOR IN INDIA

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The Ministry of New and Renewable Energy (MNRE) has taken several steps to fructify Prime Minister Shri Narendra Modi’s dream of clean energy. The largest renewable capacity expansion programme in the world is being taken up by India. The government is aiming to increase share of clean energy through massive thrust in renewables. Core drivers for development and deployment of new and renewable energy in India have been energy security, electricity shortages, energy access, climate change, etc.

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power, which include 5.8 GW from Solar Power, 7.04 GW from Wind Power, 0.53 from Small Hydro Power and 0.93 from Bio-power.   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 per cent 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. As on October 31, 2016, Solar Energy Projects with an aggregate capacity of over 8,727.62 MW have been installed in the country.

The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives, etc. In order to achieve the renewable energy target of 175 GW by the year 2022, the major programmes/ schemes on implementation of Solar Park, Solar Defence Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal Tops, Solar Pump, Solar Rooftop, etc., have been launched during the last two years.

Various policy measures have been initiated and special steps taken in addition to providing financial support to various schemes being implemented by the MNRE for achieving the target of renewable energy capacity to 175 GW by the year 2022. These include, inter alia,  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 rooftop solar and 10 per cent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities; amendments in building bye-laws for mandatory provision of rooftop solar for new construction or higher Floor Area Ratio; infrastructure status for solar projects; raising tax free solar bonds; providing long tenor loans; making rooftop solar as 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.

Estimated Potential of Renewable Energy

The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels. India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources, viz., Wind—102 GW (at 80 meter mast height); Small Hydro—20 GW; Bio-energy—25 GW; and 750 GW solar power, assuming 3 per cent wasteland.

Targets

The Government of India has set a target of 175 GW renewable power installed capacity by the end of 2022. This includes 60 GW from wind power, 100 GW from solar power, 10 GW from biomass power, and 5 GW from small hydro power.

A target of 16,660 MW grid renewable power (wind 4,000 MW, solar 12,000 MW, small hydro power 250 MW, bio-power 400 MW, and waste to power 10 MW),  has been set for 2016–17. Besides, under offgrid renewable system, targets of 15 MW eq. waste to energy, 60 MW eq. biomass non-bagasse cogeneration, 10 MW eq. biomass gasifiers, 1.0 MW eq. small wind/hybrid systems, 100 MW eq. solar photovoltaic systems, 1.0 MW eq. micro hydel and 100,000 nos. family size biogas plants have been set for 2016–17.

Major Initiatives taken by the Ministry

Solar Power

ƒ Under National Solar Mission, the target for setting up solar capacity increased from 20 GW to 100 GW by 2021–22. Target of 10,500 MW, set for 2016–17 which will take the cumulative capacity to 17 GW till March 31, 2017.

ƒ As on date, 19,276 MW has been tendered out, of which LOI issued for 13,910 MW/PPA signed for 10,824 MW.

ƒ 34 Solar Parks of capacity 20,000 MW in 21 states have been sanctioned which are under various stages of execution. 

ƒ As on October 31, 2016, a total of 90,710 solar pumps have been installed throughout the country. 

ƒ Also, a total amount of Rs 67.01 crore has been sanctioned for preparation of master plans, solar city cells, promotional activities and installation of renewable energy projects and an amount of Rs 24.16 crore has been released, so far, under Solar City Programme. 

ƒ Various departments and ministries under central government have collectively committed to deploying 5,938 MW of rooftop solar capacity for their internal power consumption. SECI is aggregating demand for a part of this requirement and helping in procuring rooftop solar systems. SECI has issued a tender for development of 1,000 MW rooftop solar capacity on preidentified central government/ department owned buildings. It is the largest such tender in India’s fledgling rooftop solar market.

Solar Rooftop

ƒ A target of 40 GW grid connected solar rooftops to be achieved by 2022 has been set. So far, about 500 MW have been installed and about 3,000 MW has been sanctioned which is under installation. All major sectors, i.e., Railways, Airports, Hospitals, Educational Institutions, Government Buildings of Central/ State/PSUs are being targeted besides, the private sector. 

ƒ A massive Grid Connected Solar Rooftop Programme launched with 40 GW target. State Electricity Regulatory Commissions of 30 States/UTs notified regulations for net-metering/feed-in-tariff mechanism. Rs 5,000 crore approved for solar rooftops. About 500 MW solar rooftop capacity installed till September 30, 2016.

ƒ A total sanction of 1,300 million dollars has been received from World Bank, KFW, ADB and NDB through which the SBI, PNB, Canara Bank, and IREDA will be in the position to fund at the rate of less than 10 per cent.

ƒ Ministry has tied up with ISRO for Geo tagging of all the Rooftop plants using ISRO’s VEDAS Portal.

Wind Power

ƒ During the year 2015–16, wind power capacity addition of 3.42 GW was made, which is highest ever wind power capacity addition in the country during a single year.   The present wind power installed capacity in the country is around 28.28 GW. 

ƒ India has a strong manufacturing base of wind power equipment in the country. Presently, there are 20 approved manufacturers with 53 models of wind turbines in the country up to a capacity of 3.00 MW single turbines. Wind turbines being manufactured in India are of international quality standards and cost-wise amongst the lowest in the world being exported to Europe, USA, and other countries.

ƒ The wind power potential of the country has been reassessed by the National Institute for Wind Energy (NIWE), it has been estimated to be 302 GW at 100 meter hub-height. Online wind atlas is available on NIWE website. This will create new dimension to the wind power development in the country.

ƒ India has a long coastline where there is a good possibility for developing offshore wind power projects. The cabinet has cleared the National Offshore Wind Energy Policy. Certain blocks near Gujarat and Tamil Nadu coastline have been identified. NIWE is in process of doing the wind resource assessment in these coastal areas.

ƒ Comprehensive Guidelines for Development of On-shore Wind Power Projects in the country have been formulated and issued on October 22, 2016. 

ƒ Guidelines for implementation of “Scheme for Setting up of 1,000 MW Inter-State Transmission System (ISTS)—connected Wind Power Projects” issued on October 22, 2016.

ƒ The Policy for Repowering of the Wind Power Projects has been released on August 5, 2016, to promote optimum utilization of wind energy resources by creating facilitative framework for repowering.

source : MNRE

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