RENEWABLE ENERGY

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SUMMARY
  • 4th Largest wind power capacity in the world. In 2017-18, wind power installed capacity stands at 34 GW.
  • 6th Largest solar power capacity in the world. Solar Energy capacity increased to 22 GW in 2017-18.
  • World’s largest ground based solar power and world’s largest rooftop solar plant are both in India
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation, for which capacity stands at 8.1 GW, as on November 2017
  • In accordance with the COP21 Paris accords, the Government of India has set a target of adding 175 GW of renewable power in the country by 2022, which will offer massive investment opportunities across the value chain.
  • Total Renewable Energy Capacity in 2017-18 stands at 70 GW.
REASONS TO INVEST
  • Economic growth, increasing prosperity, a growing rate of urbanization and rising per capita energy consumption has led to increased demand for energy in the country.
  • The target of National Solar Mission has been up-scaled to 100 GW from 20 GW of grid connected solar power by 2022, which creates a positive environment among investors keen to tap into India’s renewable energy potential.
  • India has an estimated renewable energy potential of about 1096 GW from commercially exploitable sources viz. Wind – 302 GW (at 100-meter mast height); Small Hydro – 21 GW; Bio-energy – 25 GW; and 750 GW solar power, assuming 3% wasteland
  • A target of 145.5 GW grid renewable power (wind 4 GW, solar 10 GW, small hydro power 200 MW, bio-power 340 MW and waste to power 10 MW), has been set for 2017-18
  • Under off-grid renewable system, targets of 15 MW waste to energy, 60 MW biomass non-bagasse cogeneration, 7.50 MW biomass gasifiers, 0.5 MW small wind/hybrid systems, 100 MW eq. solar photovoltaic systems, 150/25 Nos. eq. micro hydel and 110,000 nos. family size biogas plants have been set for 2017-18.
  • India is the fourth largest importer of oil and the 15th largest importer of petroleum products and Liquefied Natural Gas (LNG) globally. The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels.
STATISTICS
  • Largest ever Wind Power capacity addition of 5.5 GW in 2016-17, exceeding target by 38%. During 2017-18, a total 0.5 GW capacity has been added till November 2017, making cumulative achievement 32.7 GW. Now, in terms of wind power installed capacity, India is globally placed at 4th position after China, USA and Germany.
  • Biggest ever Solar Power capacity addition of 5.5 GW in 2016-17. During 2017-18, a total 4.3 GW capacity has been added till November 2017, making cumulative achievement 16.6 GW (including 863.92 MW Solar Roof Top)
  • 142,000 Solar Pump have been installed in the Country as on November 2017, including 131,000 installed during last three and half year
  • Solar projects of capacity 23.6 GW have been tendered
  • A capacity addition of 0.59 GW has been added under Grid Connected Renewable Power since last three and half years from Small Hydro Power plants
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation making a cumulative achievement to 8.1 GW
  • Family Type Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2017-18, against a target of 110,000 biogas plants, 15,000 biogas plants installations have been achieved, making a cumulative achievement to nearly 5 million biogas plants as on November 2017.
FDI POLICY
  • Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003.
SECTOR POLICY
  • Amendments in Tariff Policy to promote Renewable Energy
    • Enhancement in Solar Renewable Power Obligation (RPO) to 8% by March 2022.
    • Introduction of Renewable Generation Obligation (RGO) for New coal/lignite based thermal plants after specified date.
    • Ensuring affordable renewable power through bundling of renewable power.
    • No inter-state transmission charges and losses to be levied for solar and wind power.
  • Notification of the long term growth trajectory of RPO for solar and non-solar energy for next 3 years from 2016-17, 2017-18 and 2018-19;
  • Development of Solar Parks and Ultra Mega Solar Power Projects;
  • Development of power transmission network through Green Energy Corridor project;
  • Making roof top solar as a part of housing loan provided by banks;
  • Repowering of Wind Power Projects for optimal utilization of wind resources;
  • Offshore wind energy policy for development of offshore wind energy in the Indian Exclusive Economic Zone;
  • Supporting research and development on various aspects of renewable energy including with industry participation;
  • Financial incentives for off-grid and decentralized renewable energy systems and devices for meeting energy needs for cooking, lighting and productive purposes
FINANCIAL SUPPORT
  • Bank loans up to a limit of USD 2.3 million will be given to borrowers for purposes like solar based power generators, biomass based power generators, wind power systems, micro-hydel plants and for renewable energy based public utilities viz. Street lighting systems, and remote village electrification. For individual households, the loan limit will be USD 15,384 per borrower.
INVESTMENT OPPORTUNITIES
  • USD 5.8 billion Green Energy Corridor being set up to ensure evacuation of Renewable Energy in the next 3-4 years
  • Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects has an approved capacity of 40,000 MW, which entails setting up of atleast 50 solar parks, each with a capacity of over 500 MW. Planned Central Government financial support of USD 1.2 Billion.
  • Upcoming 100 Smart City projects will have huge scope for being powered by Renewable Energy.
  • Hydro projects exempt from competitive bidding till 2022
  • Setting up of small hydro projects declared as ‘Priority’ under National Mission
  • Upgradation of watermills and micro hydro projects
  • Battery packs for Electric vehicles.
FOREIGN INVESTORS
  • Enercon (Germany)
  • Vestas (Denmark)
  • Applied Materials (USA)
KEY ACHIEVEMENTS
  • A total of 100 billion units of power have been generated in the country during the year 2017-18 from all renewable energy sources.
  • The cumulative renewable energy installed capacity has increased from 35.51 GW as on March 31, 2014 to 69.98 GW as on March 31, 2018
  • 40 solar parks of aggregate capacity of 21,144 MW sanctioned for 21 states
  • Wind Atlas 2015, a Geographic Information System (GIS) launched
  • Renewable energy sector re-classified as ‘white category’ sector
SOURCES
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