RENEWABLE ENERGY

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SUMMARY
  • In December 2018, the global renewable energy generation capacity amounted to 2,351 GW.1
  • Hydropower constituted around half the share of the global total energy capacity, with an installed capacity of 1,172 GW.2
  • India has the 4th largest wind power capacity in the world. In October 2018, wind power installed capacity stood at 34.9 GW.3
  • India has the 5th largest solar power capacity in the world. Solar Energy capacity increased to 24.3 GW in October 2018.4
  • The world’s largest ground-based solar power plant is located in Kamuthi (Tamil Nadu, India) and the world’s largest rooftop solar plant is located in Beas (Punjab, India).5
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation, for which capacity stands at 9.5 GW as of November 2018.
  • Total renewable energy capacity in November 2018 stood at 73.4 GW (21.1%) apart from hydropower at 45.58 GW (13.1%).
REASONS TO INVEST
  • Economic growth, increasing prosperity, a growing rate of urbanization and rising per capita energy consumption is contributing to increasing 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. This is creating a positive environment among investors keen to tap into India’s renewable energy potential.6
  • India’s estimated renewal energy potential stands at 1,096 GW from commercially exploitable sources. This includes Wind – 302 GW (at 100-meter mast height), Small Hydro – 21 GW, Bio-energy – 25 GW and Solar Power - 750 GW, assuming 3% wasteland.7
  • India is the 4th 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.
  • As per the Paris Accord on Climate Change, the Government of India has set a target of adding 175 GW of renewable power by 2022, which will offer massive investment opportunities across the value chain.8
STATISTICS
  • A total of around 73.4 GW of renewable energy capacity was installed in 2018 (till October).9
  • Wind Power capacity addition in 2016-17 amounted to 5.5 GW, the largest ever and exceeded the target by 38%. Between April and November 2018, a total of 841 MW capacity has been added making the cumulative capacity to 34.9 GW. 10
  • In terms of wind power installed capacity, India is globally placed at 4th position after China, US and Germany.
  • Solar Power capacity addition in 2017-18 amounted to 9.4 GW which is largest till date. Between April and November 2018, a total 2.6 GW capacity has been added making the cumulative capacity to 24.3 GW.11
  • Over 196,000 solar pumps were installed in the Country, along with 1.7 mn solar home-lights as of October 2018. 12
  • Solar projects of capacity 22.8 GW were tendered and 13.8 GW under implementation till November 2018. 13
  • Small hydropower plants had a capacity addition of 0.7 GW under grid-connected renewable power between April 2014 to October 2018.
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation. Cumulative capacity of 9.5 GW was achieved till October 2018 against a target of 10 GW bio-power by 2022.14
  • Family Type Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). In March 2018, the Ministry of New and Renewable Energy set up the annual physical target of setting up 65,180 biogas plants during 2017-18. Under NBMMP, around 5 mn such biogas plants were installed by November 2017.15
FDI POLICY
• FDI up to 100% is permitted in the renewable energy sector under the Automatic route and no prior Government approval is required.
SECTOR POLICY
  • Amendments in Tariff Policy 2016 of the Ministry of Power 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 a specified date.
    • Ensuring affordable renewable power through bundling of renewable power with thermal power from unallocated quota of the Government. This facilitated grid-connected solar power generation at affordable prices to distribution companies.
    • 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 was published by the Ministry of Power in June 2018. The targets from solar and non-solar renewable sources, excluding hydro sources, are 17.5%, 19% and 21% for 2019-20, 2020-21 and 2021-22 respectively.
  • Development of solar parks and ultra-mega solar power parks.
  • Development of power transmission network through Green Energy Corridor Project.
  • Roof top solar is now a part of housing loan provided by banks.
  • Repowering next phase of wind power projects for optimal utilization of wind resources.
  • Offshore wind energy policy for the development of offshore wind energy in the Indian Exclusive Economic Zone.
  • Supporting research and development, with industry participation, on various aspects of renewable energy.
  • Financial incentives for off-grid and decentralized renewable energy systems and devices for meeting energy needs for cooking, lighting, and productive purposes.
FINANCIAL SUPPORT
  • The Ministry of New and Renewable Energy has announced provision for bank loans up to a limit of $2.3 Mn to borrowers for purposes like solar-based power generators, biomass-based power generators, wind power systems, and micro-hydel plants.16
  • Loans are also provided for renewable energy-based public utilities like street lighting systems and remote village electrification.
  • For individual households, the loan is capped at $15,384 per borrower.
INVESTMENT OPPORTUNITIES
  • Green Energy Corridor with an estimated investment of $5.8 Bn has been set up to ensure evacuation of renewable energy from generation points to the load centres by creating transmission infrastructure.
  • Scheme for Development of solar parks and ultra-mega solar power projects has an approved capacity of 40,000 MW. This entails setting up of at least 50 solar parks, each with a capacity of over 500 MW. A planned Central Government financial support of $1.2 Bn is provided for the Scheme.
  • Upcoming 100 smart cities under the Smart City Project have huge scope for being powered by renewable energy.
  • Hydro projects exempted from competitive bidding until 2022.
  • Setting up of small hydro projects declared as ‘Priority’ under National Mission on Small Hydro. Upgradation of watermills and micro-hydro projects under the same Scheme.
  • Battery packs for Electric Vehicles.
FOREIGN INVESTORS
  • Enercon (Germany)
  • Vestas (Denmark)
  • Applied Materials (US)
  • Asian Development Bank
  • Enel (Italy)
  • Gamesa (Spain)
  • Orix (Japan)
  • Nordex (Germany)
  • Mudajaya (Malaysia)
KEY ACHIEVEMENTS
  • More than 100 bn kWH of power was generated in the Country during 2017-18 from all renewable energy sources.17
  • The cumulative installed capacity of renewable energy has increased from 35.5 GW in March 2014 to 73.4 GW in October 2018.18
  • 40 solar parks of aggregate capacity of 21,144 MW sanctioned in 21 states.
  • Wind Atlas 2015, a Geographic Information System (GIS) was launched.
  • Renewable energy sector re-classified as ‘white category’ sector under pollution laws.
  • Globally, India ranks 4th in installed wind power capacity and 5th in installed solar power capacity as well as in overall installed renewable energy capacity.19
SOURCES
  1. "IRENA Website", Renewable capacity highlights”, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Mar/RE_capacity_highlights_2019.pdf?la=en&hash=BA9D38354390B001DC0CC9BE03EEE559C280013F, accessed on 09 June 2019
  2. "IRENA Website", Renewable capacity highlights”, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Mar/RE_capacity_highlights_2019.pdf?la=en&hash=BA9D38354390B001DC0CC9BE03EEE559C280013F, accessed on 09 June 2019
  3. "Ministry of New and Renewable Energy", Year End Review 2018 – MNRE, http://pib.nic.in/newsite/PrintRelease.aspx?relid=186228, accessed on 09 June 2019
  4. "Ministry of New and Renewable Energy", Year End Review 2018 – MNREhttp://pib.nic.in/newsite/PrintRelease.aspx?relid=186228, accessed on 09 June 2019
  5. "PIB Website", India's Major Drive Towards Clean Energy, http://pib.nic.in/newsite/printrelease.aspx?relid=163317, accessed on 09 June 2019
  6. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  7. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  8. “Ministry of New and Renewable Energy”, A target of installing 175 GW of renewable energy capacity by the year 2022 has been set, 100 GW of solar capacity by 2022 in the country, http://pib.nic.in/newsite/PrintRelease.aspx?relid=180728, accessed on 09 June 2019
  9. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  10. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  11. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  12. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  13. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  14. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  15. “Ministry of New and Renewable Energy”, MNRE to set up 65,180 biogas plants in current year under the National Biogas and Manure Management Programme (NBMMP), http://pib.nic.in/newsite/PrintRelease.aspx?relid=177871, accessed on 09 June 2019
  16. “Ministry of New and Renewable Energy", Year End Review 2017 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  17. “Ministry of New and Renewable Energy", Year End Review 2018 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  18. “Ministry of New and Renewable Energy", Year End Review 2018 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
  19. “Ministry of New and Renewable Energy", Year End Review 2018 – MNRE, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1514215, accessed on 09 June 2019
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