Synergy Wave System

July 17, 2019

175GW Green Energy Target: The Road Map

175GW Green Energy Target: The Road Map

The dream of a ‘New India’ includes a lion's share of clean energy. The government has a renewable energy generation target of 175 GW by the end of 2022. The target includes 5 GW from small hydropower, 10 GW from bio-power, 60 GW from wind and 100 GW from solar power. The government has already succeeded in achieving 80 GW of renewable energy. 24 GW of renewable power is currently being installed. Bids are at varying stages to produce another 42 GW. So, a total of 146 GW is already underway.

This excellent growth rate has inspired another declaration. India would achieve 40 per cent of its electric power generation through renewable energy resources. International transfer of technology and finance at low rates would provide succour.

India’s cumulative renewable energy capacity has risen around 106% in the last four years. The rise has been dramatic, from 35.51 GW in 2014, to 73.35 GW as of October 31, 2018.

The government has offered the following incentives to promote the adoption of renewable energy.

  • Capital and interest subsidies
  • Viability gap funding
  • Generation-based incentives
  • Fiscal incentives
  • Concessional finance

The National Solar Mission is promoting the use of solar energy for power generation. The focus is on aggressive research and development and long-term policies. Essential raw materials are being produced within the country. This has made solar power cost-competitive.

Some other programs implemented to meet the 175 GW target are:

  • Solar Park
  • Solar Roof Top Scheme
  • Solar Défense Scheme
  • Solar scheme for CPUs
  • Solar PV power plants on Canal Bank and Canal Tops
  • Solar Pump
  • Solar Rooftop

A total of 27 banks have committed to financing renewable energy projects.

Other important milestones include:

  • Electricity Act and Tariff Policy amended

Renewable Purchase Obligation- Large power plants and power distribution companies obligated to purchase a certain percentage of energy from renewable resources.

Renewable Generation Obligation- The government has made it mandatory for thermal power plants to produce a fixed percent of power from renewable energy resources.

  • Ministry of New and Renewable Energy (MNRE) has set up solar parks in various states, each with a capacity of over 500 MW
  • Green Energy Corridor project implemented to evacuate 20,000 MW of renewable power
  • The government has set clear guidelines for the obtainment of solar and wind power through a clear bidding process
  • Modernizing and updating old wind projects
  • Strict adherence to quality guidelines for using solar photovoltaic systems
  • Zero inter-state transmission charges for the transmission of electricity generated from solar or wind power
  • Installation of solar panels on rooftops of government buildings
  • Provision for rooftop solar made compulsory for the development of smart cities. Strict guidelines for smart cities to have at least 10 percent of their energy needs sourced from renewable energy resources
  • Mandatory installation of rooftop solar for new buildings
  • Solar PV industry to be given infrastructure industry status to mobilise growth and foreign investments
  • Tax-free bonds offered for funding renewable energy projects
  • Long tenor loans provided
  • Loans for setting up solar panels on rooftops to be disbursed by banks as a part of housing loans
  • Launch of Integrated Power Development Scheme (IPDS) to strengthen the distribution network
  • Raising funds from bilateral and international donors. The Green Climate Fund to be an important source of funds to achieve the target

Various research reports have suggested that the 175 GW target is ambitious. Solar installations have fallen by 49% in January-March 2019 itself. This has been attributed to delays in approvals, payment issues, tariff caps, etc.