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ENVIRONMENT

hydro plants where evacuation facility is
available. To allay industry fears on
meeting renewable purchase obligation
(RPO), the minister has promised that
these issues will be addressed through
India Wears ‘Green’ the Electricity Amendment Bill, which is
likely to be pushed in the Budget session
Stripes with Pride, wants of 2018. He has also given an assurance
that the RPOs will be made mandatory.
The RPO refers to the legal obligation
more in 2018 on some entities to either buy electricity
generated by specified ‘green’ sources,
or buy, in lieu of that, ‘renewable energy
The other big policy initiative that would help the renewable cause is removal certificates (RECs)’ from the market. The
of distinction between small and large hydro power projects under the other big policy initiative that would help
proposed hydro policy, which provides for incentives to the tune of Rs the renewable cause is removal of
16,000 crore for this segment —By Kamal Kishore Shankar distinction between small (up to 25 MW)
and large hydro power projects under the
Driven by a historic low solar and wind Renewable Energy Minister R K Singh proposed hydro policy, which provides for
power tariff, India is about to take a leap had told PTI, “We want to bring two incentives to the tune of Rs 16,000 crore
for this segment. Currently, large hydro
of faith on the renewable energy front, expressions of interest for setting up
lining up green project auctions to the domestic manufacturing capacities of projects are not counted as renewable
tune of about Rs 2.7 lakh crore in 2018. ones and are not entitled to incentives
INDIA’S LEAP OF FAITH available to small projects. Removal of
The government has drawn up a plan to In Brief the distinction is expected to add another
auction 30 GW (gigawatt) of solar, 10  India is lining up green project 45 GW to the renewable kitty. India’s
GW of wind and 5 GW of offshore wind auctions to the tune of about renewable energy capacity now stands
projects next fiscal, pegged at Rs 2.7 lakh Rs 2.7 lakh crore in 2018. at around 60 GW.
crore with an average equipment cost of  The government has drawn This is seen as a crucial step to help
Rs 6 crore per megawatt (MW). To put up a plan to auction 30 GW of India achieve 225 GW of renewable
things in perspective, wind power tariff solar, 10 GW of wind and 5 energy capacity by 2022 against the
dropped sharply to an all-time low of Rs targeted 175 GW. India’s target includes
GW of offshore wind projects 100 GW of solar and 60 GW of wind
2.43 per unit during an auction conducted
by Gujarat Urja Vikas Nigam Ltd next fiscal. energy. Sanjeev Aggarwal, Managing
(GUVNL). Earlier, the tariff was down at Rs  The government would buy Director and CEO, Amplus Energy, said
2.64 during the second auction of the Solar equipment for generation of that in 2018, the states should be on par
Energy Corporation of India (SECI) for 1 20 GW. with the Centre when it comes to
GW projects in October this year. In the 4.This is seen as a crucial step promotion and adoption of renewable
first round, the tariff stood at Rs 3.46. A to help India achieve 225 GW energy. About issues raised by the
senior official attributed this to a fair and of renewable energy capacity industry on honouring of power purchase
transparent bidding process on the back by 2022. agreements, Singh had clarified that
of lower equipment and borrowing costs. these agreements are legal obligations
As for solar power, the tariff too and must be honoured. Aggarwal pitched
dropped to a record low of Rs 2.44 during solar equipment. That would be for for providing greater powers to state
regulators. He also made a case for
an auction earlier this year. Investors are polysilicon.” Only those who would set
upbeat about the government’s new up manufacturing capacities in India from making RPO a statutory requirement and
proposal of offering incentives in the polysilicon onwards could bid, Singh had introduction of penalties for non-
order of Rs 11,000 crore to promote added. The government, the minister had compliance. He is hopeful of bankability
of discoms and improvement in their
domestic manufacturing of solar said, would buy equipment for generation
equipment. It is likely to be approved and of 20 GW, but the bidders would set up financial health in 2018. He suggested
implemented in 2018. But worries remain. manufacturing capacity in stages. that the grid infrastructure needs to be
Huge dependence on import for setting FULLPROOF GOVERNM ENT strengthened to accommodate 175 GW
up of solar projects due to inadequate ARRANGEMENTS of renewable energy and standardisation
domestic manufacturing capacity here is “They would set up manufacturing of contractual bids. There should be
still a sticking point. The proposed capacity for solar cell and modules in the “single window” for land acquisition for
incentives and the recently floated first year. In the second year, they would grid evacuation, and renewable energy
specific lending and financing should
expression of interest for 20 GW solar set up capacity for solar wafers. In the
capacities by the SECI are expected to third stage, they would set up capacity meet the current investment parameters
address the issue. During an interview for polysilicon,” Singh had said. There of the sector.
earlier this month, Power and New & are also plans to float solar capacities at (PTI Economic Service)

82 Competition Wizard March 2018