Delhi govt approves draft Solar Policy, revises target by three times to 6,000 MW by 2025

Delhi govt approves draft Solar Policy, revises target by three times to 6,000 MW by 2025

Last Updated: December 29, 2022

Solar Policy

The policy also encourages discoms to increase the share of solar energy procured from outside Delhi through innovative models such as RE-RTC (Renewable Energy-Round the Clock). It combines a host of renewable energy sources (solar, wind and others) alone with appropriately sized battery storage to provide round-the-clock power as per the demand curve of Delhi, the statement said.

The Delhi government on Thursday approved the draft of its ambitious Solar Policy 2022 which revises the installed capacity to 6,000 MW from 2,000 MW by 2025, a three-fold jump in as many years. Delhi’s new solar policy targets 6,000 MW of installed solar capacity by 2025 to increase the share of solar energy in Delhi’s annual electricity demand from 9 per cent to 25 per cent in three years, the highest in India, said Deputy Chief Minister Manish Sisodia. The government had targeted an installed capacity of 2,000 MW solar power by 2025 in its 2016 solar policy. The policy aims to create a unified single-window state portal managed by the Delhi Solar Cell that will provide information on the benefits of solar PV systems, process-related guidelines, and timeline. “To motivate consumers to use solar energy, the government will provide various incentives such as generation-based incentives (GBI) and capital subsidies. For the first time in the country, consumers will have an opportunity for Community Solar and Peer-to-Peer trading,” Sisodia said The policy will provide capital subsidies for residential as well as commercial consumers in Delhi, he said. The draft Delhi Solar Policy 2022 will now be in the public domain for 30 days for comments from stakeholders, after which it will be tabled in the Cabinet for final approval. “The new solar policy will further boost the efforts of the Delhi government to fight pollution while generating 12,000 new jobs. It will make Delhi a model for states and cities not just in India but also across the world in enabling sustainable clean energy transition,” the deputy CM said.

The draft policy provides for monthly GBI for residential, group housing societies and resident welfare associations, and commercial and industrial consumers for five years from the date of commissioning of the solar power . The GBI will be Rs 3/kWh for residential solar systems up to 3 kW, Rs 2/kWh for residential solar systems above 3 kW and up to 10kW, Rs 2/kWh for CGHS and RWAs with solar systems up to 500kW (at 10kW per house). An early-bird GBI of Rs 1/kWh will be offered for the first time for commercial and industrial consumers for the first 200 MW of solar deployment. For residential consumers, a capital subsidy for mounting structures (raised structures that have a minimum ground clearance greater than six feet) will be provided at the rate of Rs 2,000 per kW up to a maximum of Rs 10,000 per consumer and adjusted against electricity bills, as per the policy. Taxes and duties will not be levied on generation from RTS (roof top solar) panels whether for self-consumption or supplied to the grid. To increase the uptake of RTS panels, the policy also encourages new deployment models such as Hybrid RESCO, Community Solar and Peer-to-Peer trading. A Hybrid RESCO model is envisioned for the first time in India through the draft Delhi Solar Policy 2022 for all consumers, a Delhi government statement said. This model enables consumers to access the net metering benefits of solar without making any upfront capital investment by entering into an agreement with their power discom. For the first time in the country, ‘Community Solar’ will be set in place. It will enable consumers who do not have a suitable roof for installing a solar system to be owners of a part of a larger solar energy system set up by a developer within an available land parcel in Delhi, the statement said. ‘Peer-to-Peer Trading’ of solar energy will also be set in place. It will enable owners of solar energy systems to sell their excess generated electricity in real-time via a P2P energy trading platform. The policy also encourages discoms to increase the share of solar energy procured from outside Delhi through innovative models such as RE-RTC (Renewable Energy-Round the Clock). It combines a host of renewable energy sources (solar, wind and others) alone with appropriately sized battery storage to provide round-the-clock power as per the demand curve of Delhi, the statement said.

Source Link: https://economictimes.indiatimes.com/industry/renewables/delhi-govt-approves-draft-solar-policy-revises-target-by-three-times-to-6000-mw-by-2025/articleshow/96603923.cms?from=mdr

Indian banks go big on financing renewable energy projects

Indian banks go big on financing renewable energy projects

Last Updated: January 04, 2023

Renewable Energy Projects

New Delhi: Indian banks are warming up to financing renewable energy projects in line with the government’s vision to become more climate sensitive.

Companies, too, are switching to more eco-friendly options, creating the space for higher lending to this sector.

The outstanding bank loans to the sector have grown at over 100% year-on-year, indicating momentum in underwriting renewable energy loans. According to Reserve Bank of India data, outstanding bank loans to this sector more than doubled to ₹4,191 crore at the end of October 21, 2022, as compared with ₹2,073 crore a year back.

“Renewables have seen an uptick as the nation is getting more climate-sensitive,” Bank of Baroda chief economist Madan Sabnavis said. “The conventional power sector already has surplus capacity and the state distribution companies (discoms) have their set of problems. There is hence less investment taking place. Power generators are also moving towards renewables given the aspirations for the sector as a whole going forward,” he said.

State Bank of India, the country’s largest lender, is said to be exploring renewables as well as electric mobility to diversify its portfolio.

“In line with the country’s vision and global need for promoting renewable energy (RE), your bank is also underwriting RE financing in a big way,” State Bank of India chairman Dinesh Kumar Khara said in his annual message to shareholders.

During the previous financial year, SBI did a dual listing of its green bonds worth $650 million on the India International Exchange and the Luxembourg Stock Exchange.

The country installed a record 15 gigawatts of new renewable energy capacity in 2021-22, in line with Prime Minister Narendra Modi’s vision to achieve 450 GW by 2030.

“Given the commitments made by India and the response of companies to switch to renewables, the potential for growth of this sector is high. There will continue to be a shift even for generators from conventional to renewables which will necessitate higher levels of borrowing,” Sabnavis said.

“This is a sector where banks can expect an increase in demand for credit and is divorced from other factors such as state of the economy where investment decisions are based on considerations such as consumption levels and capacity utilisation,” he added.

With asset quality woes now largely behind banks in general, further momentum in financing renewables may follow.

Source Link: https://energy.economictimes.indiatimes.com/news/renewable/indian-banks-go-big-on-financing-renewable-energy-projects/96723917

India missed 175 GW renewable energy capacity target by 30 per cent: Bridge to India

India missed 175 GW renewable energy capacity target by 30 per cent: Bridge to India

Last Updated: January 04, 2023

Bridge to India

New Delhi: India’s renewable capacity, exclusing large hydro, is expected to have touched 122 GW by December 2022 against the Government of India’s target of 175 GW – a deficit of 30 per cent, consultancy firm Bridge to India said.

Annual solar and wind capacity addition has averaged at about 9 GW over the last five years as against a corresponding target of 19 GW. Wind capacity growth has suffered particularly badly since transition to competitive auctions in 2017 with average annual capacity addition of only 2 GW, it said. In contrast, solar capacity has grown more consistently.“

The sector has been somewhat muddling along recently in absence of policy stability and proactive long-term planning. The task ahead is going to get more acute as we add more intermittent renewable capacity impacting grid stability,” said Vinay Rustagi, MD, Bridge to India.

The government has adopted an extremely ambitious target anticipating combined solar and wind capacity addition of 36 GW annually up to FY 2030, but 2023 is expected to be a very slow year as many projects are being postponed due to lack of domestically manufactured modules.

The firm said in a statement module supply over next year is expected to be constrained following implementation of up to 40 per cent BCD and Approved List of Models and Manufacturers (ALMM) policy. The government has already provided time extension of up to September 2024 for many centrally auctioned projects.

“It is clear that an urgent course correction is needed to meet revised targets and address both demand and supply side challenges in the sector,” Bridge to India said, adding the government needs to work on four key areas – encourage demand from states, address land and transmission bottlenecks, improve integrity of bidding process, and provide policy certainty to corporate and residential renewable markets.

Most states seem reluctant to buy more renewable power despite strong policy thrust, growing demand and low cost, and 25 of the 30 states had adopted Renewable Purchase Obligation targets lower than the central government target of 21.2 per cent for FY 2022.

“Even the low targets were rarely enforced by state regulators because of poor financial condition of DISCOMs, intermittency concerns, lack of renewable resource and land at reasonable cost,” the firm said.

It added that initiatives such as solar park scheme, green energy corridors and renewable energy zones have faced extensive delays and cost overruns, and almost all utility-scale projects face acute land and transmission challenges delaying execution.

Source Link: https://energy.economictimes.indiatimes.com/news/renewable/india-missed-175-gw-renewable-energy-capacity-target-by-30-per-cent-bridge-to-india/96740844

India-UAE to sign deal on renewable energy grid link: Union Minister RK Singh

India-UAE to sign deal on renewable energy grid link: Union Minister RK Singh

Last Updated: January 15, 2023

India-UAE to sign deal on renewable energy grid link

Union Minister for Power and New Renewable Energy RK Singh said that the country is close to a major agreement on renewable energy with UAE.

The minister affirmed that UAE is interested in investing in India’s renewable energy projects including solar and wind energy.

At a time when the debate is raging around the world regarding the future of fossil-fuel-based energy, India is rapidly diversifying its energy sources. Union Minister for Power and New Renewable Energy RK Singh on Sunday informed that the country is close to a “major agreement” on renewable energy with United Arab Emirates (UAE).

Singh, who is in Abu Dhabi for the International Renewable Energy Agency’s (IRENA) assembly did not elaborate on a time frame but confirmed that the deal is at the stage of final approvals.

“There is a major agreement for an interconnection between the UAE electricity grid, and the Indian grid,” Singh said. The minister added that the agreement would be under the One Sun, One World, One Grid (OSOWOG) initiative by a group of countries to create renewable energy networks.

OSOWOG, first proposed by PM Modi works with the objective to transfer renewable energy through connecting grids.

On 13 January, the two countries signed a Memorandum of Understanding (MoU) on green hydrogen development produced using renewable energy. The minister affirmed that UAE is interested in investing in India’s renewable energy projects including solar and wind energy.

The minister is also backing the Gulf country as the host for COP 28 climate conference and also supports its climate envoy Sultan Al Jaber for the post of President-designate COP 28. Some climate activists have raised objections to Jaber’s nomination claiming that a fossil fuel-rich nation might hijack the global response to environmental crises.

“He (Jaber) is the point man for renewables, for climate change. When you look at energy transition you look at the whole energy sector, the whole basket, and in the oil and gas sector too, he’s been working on green initiatives,” the minister said.

Fossil fuel-rich countries like UAE are choosing a hydrocarbon-based transition that will keep in mind the energy security aspect while being committed to decarbonization.

Source Link: https://www.livemint.com/news/india/indiauae-to-sign-deal-on-renewable-energy-grid-link-union-minister-rk-singh-11673798679292.html

Centre clears ₹19,744-crore Green Hydrogen Mission

Centre clears ₹19,744-crore Green Hydrogen Mission

Last Updated: January 04, 2023

Green Hydrogen Mission

Plan to make India energy-independent, decarbonise major sectors of the economy, and to turn the country into a global hub to produce, utilise and export the alternative fuel & its derivatives

The Union Cabinet on January 4 approved the National Green Hydrogen Mission, which is aimed at making India the global hub for the production of green hydrogen.

The total outlay for the mission is ₹19,744 crore, out of which the government has allocated ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, ₹1,466 crore for the upcoming pilot projects, ₹400 crore for R&D, and ₹388 crore towards other mission components.

“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission,” Union Minister Anurag Thakur said while briefing reporters about the Cabinet decisions.

The National Hydrogen Mission was launched on August 15, 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy.

The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.

The mission seeks to promote the development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.

It envisages an investment of over ₹8 lakh crore and creation of over 6 lakh jobs by 2030.

It will also result in a cumulative reduction in fossil fuel imports of over ₹1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.

The mission will have wide-ranging benefits — creation of export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies, an official statement said.

The mission will facilitate demand creation, production, utilisation and export of green hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms — targeting domestic manufacturing of electrolysers and production of green hydrogen — will be provided under the mission.

The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs, the Minister added.

An enabling policy framework will be developed to support establishment of the green hydrogen ecosystem. A robust standards and regulations framework will be also developed.

Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the mission. R&D projects will be goal-oriented, time-bound, and suitably scaled up to develop globally competitive technologies. A coordinated skill development programme will also be undertaken.

Why is there a sudden surge of interest around green hydrogen?
 

All concerned ministries, departments, agencies and institutions of the Central and State Governments will undertake focused and coordinated steps to ensure successful achievement of the mission objectives.

The Ministry of New and Renewable Energy will be responsible for the overall coordination and implementation of the mission, he stated.

India has just begun to generate green hydrogen with the objective of raising non-fossil energy capacity to 500 gigawatts by 2030. At the World Economic Forum in Davos, Switzerland, in May 2022, Minister of Petroleum and Natural Gas Hardeep Singh Puri said India will emerge as the leader of green hydrogen by taking advantage of the current energy crisis across the globe. His assertion came almost a month after Oil India Limited (OIL) commissioned India’s first 99.99% pure green hydrogen plant in eastern Assam’s Jorhat.

(With PTI inputs)

Source Link: https://www.thehindu.com/news/national/centre-approves-national-hydrogen-mission-aiming-to-make-india-global-hub-for-green-hydrogen-production/article66337456.ece

Odisha renewable energy policy, 2022

Odisha renewable energy policy, 2022

Last Updated: November 30, 2022

Odisha Renewable Energy Policy

Climate change is the most pressing issue of present times. Mitigating the risks of climate
change requires urgent action at all levels and there is a need for concerted efforts to
support the global action against climate change. Decarbonisation of the energy sector will
be a key component of our actions for climate protection.
This Policy envisions to establish a robust framework that can enable Odisha to undertake
an inclusive journey towards energy transition through higher adoption of renewable
energy (RE) in our power system. Apart from power sector, it is also required to have
parallel and concerted measures around electric mobility, green buildings, low carbon or
carbon-free agricultural practices, industrial & mining activities .
Odisha is endowed with vast and largely untapped renewable energy potential. Although
the techno-commercial viability of the entire potential capacity needs to be ascertained, a
large part of the potential can be brought to life with proper technology, Policy and
Regulatory framework and market mechanism. With RE becoming commercially viable
and growing trend towards adoption of low carbon and sustainable ways of development,
citizens and businesses are now focused on RE to meet their energy needs.
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As per the Nationally Determined Contribution (NDC) submitted to United Nations
Framework Convention on Climate Change (UNFCCC), India stands committed to reduce
Emissions Intensity of its GDP by 45 percent by 2030, from 2005 level and generate about
50 percent of electricity from non-fossil sources by 2030.
Odisha is among the leading industrialised states in the country and a continuous increase
in energy demand from all sectors is expected in the years to come. There is clear
demand for RE from the DISCOMs and the industries due to RPO and Net Zero
commitments. It is desirable that these obligated entities meet most of their RE
requirement from projects developed inside the State. Hence, the Government
has formulated a new RE Policy to facilitate development of commercially viable projects
across multiple RE technologies within the State both for captive and open access
consumption.
The Government through this Policy aims to encourage State sector power utilities to foray
into RE development in multiple technologies, apart from enabling participation from
private sector and Central PSUs.
As Industries and Governments embark upon the journey of energy transition, it is
essential to ensure that the transition is ‘just’. Proper training will be required for the youth
and working population to take up jobs in RE sector. The Policy aims to create skilled
and semi-skilled manpower for the RE sector.
With this primary objective to create an enabling environment for harnessing maximum
potential of Renewable Energy in the State through Government, private sector and
individual efforts, the Odisha Renewable Energy Policy 2022 has been developed.
1. Vision
To harness the renewable energy (RE) potential of Odisha and accelerate investment in
the RE sector for ensuring energy security, promoting socio-economic growth and
protecting the environment.
2. Objectives
The Policy aims to achieve following objectives: –
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A. To accelerate adoption of clean energy alternatives and decarbonize the energy
sector which includes both grid-based electricity consumption and captive
consumption of industrial consumers in the State
B. To harness the clean energy potential of the State and make best use of the
available resources by facilitating development of green energy projects in the State
C. To attract investment in the clean energy sector, create job opportunities and
develop the State economy
D. To facilitate R&D and promote new initiatives & emerging RE technologies in the
State
3. Legal Framework
The legal basis for this Policy inter alia includes the following:
1. The Electricity Act, 2003 (“ the Act”) & the Rules made thereunder.
Section 86(1)(e) of the Act mandates State Electricity Regulatory Commissions (SERCs)
to promote generation of electricity from renewable sources of energy.
2. Tariff Policy notified by Ministry of Power, Government of India.
4. Policy period
The Policy shall come into operation with effect from the date of its publication in the
Official Gazette of the State and shall remain in force till 31st March 2030 or until a new
policy is announced by the State Government.
This Policy will be evaluated on regular basis to assess its impact, and to ensure inclusion
of any new RE technology/guidelines of Government of India (GoI)/Government of Odisha
(GoO) that may evolve during the Policy period.
The Government of Odisha may amend/modify/ review this Policy as and when deemed
necessary.
5. Scope of the Policy
A. All large hydro, small hydro, ground mounted solar, roof top solar, floating solar,
canal top solar, wind, biomass, energy storage (including pumped storage hydro,
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battery energy storage system), waste-to-energy, green hydrogen/green ammonia
projects or any other renewable energy technology and new initiatives/ pilot projects
commissioned in the State of Odisha during the Policy period shall be guided by
this Policy.
B. Any individual or company or body corporate or association or society or body of
individuals, whether incorporated or not, shall be eligible for setting up Renewable
Energy (RE) projects, either for the purpose of captive use and/or for selling of
electricity to the distribution licensee or third party including under the Renewable
Energy Certificate (REC) mechanism subject to provisions of this Policy and in
accordance with the Electricity Act 2003, as amended from time to time and the
Rules made thereafter.
C. The benefits under this Policy shall not be applicable to projects sanctioned prior to
the date of notification of this Policy or which is commissioned post the policy
period. This Policy also does not cover the projects for which PPAs have already
been signed.Source Link: http://www.indiaenvironmentportal.org.in/files/file/odisha%20renewable%20energy%20policy%202022.pdf