Year end review - 2019 : Ministry of New & Renewable Energy
- Part 1 -

Press Information Bureau *

Renewable energy sector makes rapid strides in 2019

As a part of Nationally Determined Contributions as per the Paris Accord on Climate Change, India has made a pledge that by 2030, 40% of our installed power generation capacity shall be from non-fossil fuel sources and also by 2030, reduce emission intensity of GDP by 33-35 % from 2005 level. Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy consumption has increased the energy demand of the country.

Keeping in view the above and our commitment for a healthy planet with less carbon intensive economy, we decided in 2015 that 175 GW of renewable energy capacity will be installed by the year 2022. This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power.The substantial higher capacity target will ensure greater energy security, improved energy access and enhanced employment opportunities. With the accomplishment of these ambitious targets, India will become one of the largest Green Energy producers in the world, even surpassing several developed countries.

The Prime Minister in his address atto Climate Action Summit stated that "India's renewable energy capacity would be increased to much beyond 175 GW, and later till 450 GW”.In line with the objective of expanding renewable energy sector, several important initiatives were taken during year 2019.

Renewable Energy capacity is rising rapidly and the status of projects as on 17.12.19 is given below:

Sector Installed capacity (GW) Under Implementation (GW) Tendered (GW) Total Installed/ Pipeline (GW)
Solar Power 32.53 25.05 25.78 83.36
Wind Power 37.28 9.64 2.20 49.12
Bio Energy 9.94 0.00 0.00 9.94
Small Hydro 4.65 0.55 0.00 5.20
Wind Solar Hybrid 0 1.44 0.00 1.44
Round the Clock (RTC) Power 0 0.00 1.60 1.60
Total 84.40 36.68 29.58 150.66

MAJOR INITIATIVES UNDERTAKEN DURING THE YEAR 2019

1. Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)

In a major initiative towards making Annadata also a Urjadata PM-KUSUM scheme was approved on 8th March 2019 and implementation guidelines were issued on 22.7.2019. State-wise allocation of capacities for the first year was made on 13.8.2019. The scheme covers grid-connected RE power plants (0.5 – 2 MW)/ Solar water pumps/ grid connected agriculture pumps and has following three components:

Component A: Installation of 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Energy Power Plants by farmers of 500 kW to 2 MW capacity within 5 km distance from sub-station primarily on barren/uncultivable land. The DISCOMs will purchase power at pre-fixed tariff for which they will get PBI of Rs. 0.40 per unit up to Rs. 33 lakh per MW in a span of five years.

Component B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps for which Government of India will provide financial support up to 30% of the cost of solar pump and States to also provide at least 30% of the cost of solar pump, balance cost to be shared by the beneficiary farmer. (For NE and hilly States/UTs the Central support would be up to 50% of the cost of solar pump)

Component C: Solarisation of 10 Lakh existing Grid-connected Agriculture Pumps for which Government of India will provide financial support up to 30% of the cost of solarisation and States to also provide at least 30% of the cost of solarisation, balance cost to be shared by the beneficiary farmer. (For NE and hilly States/UTs the Central support would be up to 50% of the cost of solarisation)

Targets: Setting up of 25,750 MW additional solar capacity by 2022.

Implementing framework: Scheme will be implemented by agencies designated by States for the three components in the respective states as per implementation guidelines issued by MNRE. Centralised tendering envisaged for Component-B. Centralised tendering for 1.75 lakh solar pumps Component-B completed by EESL (Energy Efficiency Services Ltd.) and States started implementations of Component-B. For Component-A and C the States have to initiate process as per Guidelines.

2. Standard bidding guidelines

The Ministry has issued Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar & Wind Power Projects with an objective to provide a framework for procurement of solar & wind power through a transparent process of bidding including standardisation of the process and defining of roles and responsibilities of various stakeholders.

In order to strengthen the contractual provision in the Contract (Power Purchase Agreement) between the solar power generators and the Procurers, and to facilitate setting up of solar power projects, the Government, vide notification dated 22.10.2019 from Ministry of New & Renewable Energy, has made following major amendments to the 'Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects:

(i). Solar Power Generators have been allowed to submit documents/Lease Agreement to establish possession/right to use 100% (hundred per cent) of the required land in the name of the Solar Power Generator for a period not less than the complete term of the PPA, on or before the Scheduled Commissioning Date (SCD).

(ii). Clear and elaborate provisions for time extension and compensation to affected party in the event of natural and non-Natural Force Majeure events with specific provisions regarding termination due to natural and non-natural Force Majeure events have been included.

(iii). Quantum of Compensation for back-down has been increased from 50 % to 100% with provision for recognition of only written instructions of back-down and payment of back-down compensation.

(iv). Corresponding Time Extension in date for achievement of financial closure and scheduled commissioning date, in case there is a delay in adoption of tariff by the concerned Electricity Regulatory Commission beyond a period of 60 days from the filing of such application.

Similar relaxations were also made for wind power bidding guidelines.

3. Development of Ultra Mega Renewable Energy Power Parks (UMREPPs)

This Ministry has undertaken a scheme to develop Ultra Mega Renewable Energy Power Parks (UMREPPs) under the existing Solar Park Scheme. The objective of the UMREPP is to provide land upfront to the project developer and facilitate transmission infrastructure for developing Renewable Energy (RE) based UMPPs with solar/wind/hybrid and also with storage system, if required.

The implementing agency of the UMREPPs may be a Special Purpose Vehicle (SPV) in form of a Joint Venture Company (JVC) to be set up between Central Public Sector Undertaking (CPSU) and any State Public Sector Undertakings (SPSU) or State Utility or Agency of the State Government or a SPV fully owned by any CPSU or a SPV fully owned by any State PSU / State Utility / Agency of the State Government. NTPC, SECI, NHPC, THDC, NEEPCO, SJVNL, DVC, NLC and PFC have proposed to set up UMREPPs of around 42,000 MW in various states.

4. Grid-Connected Rooftop Solar (RTS) Programme

Phase II of the Grid connected rooftop solar programme was approved with a target for achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022 in February 2019. In the Phase-II Programme, Central Financial Assistance (CFA) for the residential sector has been restructured. Important features of the Phase-II of RTS are as under: -

o Power Distributing companies (DISCOMs) will be the implementing agencies
o Subsidy/CFA will be available for the residential sector only
o CFA under residential category will be provided for 4000 MW capacity and the same will be provided on the basis of benchmark cost or tender cost, whichever is lower.
o For RTS systems up to 3 kW, CFA is 40%; for capacity above 3 kW and up to 10 kW, CFA is 40% for first 3 kW and 20% for balance quantity; for capacity above 10 kW, CFA is 40% for first 3 kW and 20% for next 7 kW. No subsidy beyond 10 kW capacity.
o For Group Housing Societies/Residential Welfare Associations (GHS/RWA), CFA will be limited to 20% for RTS plants for supply of power to common facilities; however, the capacity eligible for CFA for GHS/RWA will be limited to 10 kW per house with maximum total capacity up to 500 kWp.
o Residential Consumers/Group Housing Societies/Residential Welfare Associations have to pay only balance amount after deducting the CFA to the empanelled vendor for installation of the RTS project o For availing the benefit of CFA, indigenously manufactured PV Modules and Cells are to be used.
o Performance based incentives will be provided to DISCOMs based on RTS capacity achieved in a financial year (i.e. 1st April to 31st March every year till the duration of the scheme) over and above the base capacity i.e. cumulative capacity achieved at the end of previous financial year.

To be continued ....