2021: Bank of India on innovative ways to invest Rs 1.75 lakh crore for the renewable energy sector

Currently, the country has a total installed renewable energy capacity of 90 GW. This includes 39 GW of wind and 37 GW of solar power capacity.

New Delhi (Natural Energy News): India will appear more innovative in its approach to achieve an additional investment of Rs 1.75 lakh crore in addition to 35 GW of renewable power generation capacity next year to meet the ambitious target of 175 GW clean energy capacity by 2022. Currently, the country has a total installed renewable energy capacity of 90 GW. This includes 39 GW of wind and 37 GW of solar power capacity.

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About 50 GW of renewable energy capacity is under construction and there is also a strong pipeline of 30 GW for new bids.

Shekhar Dutt, Director General of Solar Power Developers Association said, "To achieve the overall target of 175 GW, a fund requirement of 35 GW (bidding / auctioning/auctioning) requires a fund of Rs 1.75 lakh crore." PTI He also said that innovation will play a key role in 2021 to implement renewable projects and innovate to attract investors.

According to him, India needs to design innovative tenders with the inclusion of wind, solar and energy storage to ensure that renewable fossil fuels are substantially replaced. This year has been challenging for the renewable energy sector, but the industry has been able to withstand the crisis caused by the epidemic with the support of the government. Furthermore, investor confidence in the sector has increased further as the solar energy tariff shows that the psychological barrier of Rs 2 per unit is breaking.

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In December, the solar power rate fell to less than Rs 1.99 per unit in the auction of 500 MW capacity projects by Gujarat Energy Development Limited (GUVNL). Earlier, an auction for 1,070 MW projects undertaken in November by Solar Energy Corporation (SECI) saw tariffs fall by Rs 2 per unit. In July this year, the solar power rate fell to Rs 2.36 per unit in the auction of 2 GW capacity by SECI. Now, to keep the momentum, the government will have to become more active and innovative to attract investors to the sector.

India had set an ambitious target of 175 GW of renewable energy capacity by 2022. This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydropower. Talking about the challenge of bringing the required investment next year to achieve the 175 GW target, Union Energy and New and Renewable Energy Minister RK Singh said, “We are going to come up with (more innovative bids) in 2021. " He told PTI that earlier government efforts helped position India as the most preferred destination for investment, particularly in the clean energy sector, and this is evident from the US $ 64 billion investment in renewable goods.

The minister also cited the example of 24-hour, hybrid and manufacturing auctions for clean energy in the country. According to government estimates, the demand for domestically manufactured solar cells and modules is likely to be around 36 GW in the next three years.

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In November, Prime Minister Narendra Modi said that there are huge renewable energy deployment plans for the next decade. “They are expected to generate about 1.5 lakh crore rupees or 20 billion USD worth of business per year. This is a great opportunity to invest in India, ”Modi said.

With the impact of COVID-19 on the gradual decline and high visibility of vaccine availability, 2021 promises to be an exciting year for the renewable sector. According to industry estimates, the cumulative capacity of 20 GW of clean energy is to be commissioned, indicating an increase in opportunities for equipment suppliers. Dutt said that agencies implementing renewable energy projects are facing challenges in terms of signing a Power Sales Agreement (PSA) with power distribution companies (discoms) and power buyers for around 16 GW.

Such a situation suggests that the ambitious target of 175 GW will be implemented only if there are assured buyers for clean energy across the country. Otherwise, it would not be feasible to install the capacities of a huge generation. Meanwhile, there is a focus on Atmanibhar Bharat's initiative to promote local PV (photovoltaic) manufacturing as well as to ensure quality and competitiveness against imported PV cells. This is being done through providing support through the Government's PLI (Performance Linked Incentive) Scheme.

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However, Dutt said that unless domestic manufacturing capacity of the required quality is sufficient to meet the demand, restrictive measures should be avoided. According to industry players, the current focus is on developing large-scale ultra mega solar power projects, but there are challenges such as land acquisition, sub-optimal use of power evacuation infrastructure and high transmission losses and charges.

India is endowed with abundant sunshine across the country with a variation of 15–20 percent. Therefore, small to medium scale projects (50-100 MW) can be developed at load centers in 700+ districts located across the country, resulting in lower transmission losses, better utilization of transmission assets, equal employment generation and development etc.”said Dutt.

Discom's structural reforms are being looked into to ensure timely payment to electricity producers.

Amendments to the Electricity Act, 2003 and the tariff policy, which have provisions to address the issues, are awaited by the industry.

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Suntuity REI Director of Operations Iman Jawan stated that "With enough government policies, support and plans to educate and educate people on the benefits of clean and sustainable energy, I believe we can definitely 175 WW Can achieve its renewable energy target. 2022 ".

India has set an ultimate goal of 450 GW of clean energy by 2030.

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