February 4, 2020
The developers of these projects are thought to have invested over US$5.2 billion in 2019-20, up to December 2019, compared with US$5.7 billion in 2018-19
Ministry of New and Renewable Energy expects renewable energy capacity addition in 2019-20 to exceed the capacity addition in 2018-19, which was 8.5 GW
India is ahead of its target of setting up a renewable energy capacity of 175 GW by 2022. The nation is now aiming 500 GW of energy generation capacity by 2030
Renewable energy is pivotal to rapid urbanisation and industrialisation in India and key to the Government’s target of building a US$5 trillion economy by 2024
India has added renewable energy capacity of 7.6 GW in 2019-20 (up to December 2019) while another 34.2 GW capacity is under various stages of implementation, as per the Ministry of New and Renewable Energy. The Government, meanwhile, expects renewable energy capacity addition in 2019-20 to exceed the capacity addition in 2018-19, which was 8.5 GW. India is currently ahead of its target of setting up an additional renewable energy capacity of 175 GW by 2022. The nation is now planning to set up 500 GW of renewable energy generation capacity by 2030. Renewable energy is pivotal to rapid urbanisation and industrialisation in India and key to the Government’s target of building a US$5 trillion economy by 2024.
Among the new capacity additions, most of the grid-connected renewable energy projects in the country are being implemented by private sector developers. The developers of these projects are thought to have invested over US$5.2 billion in 2019-20, up to December 2019. This compares with an investment of US$5.7 billion in the renewable energy industry in 2018-19. To boost investment in the space, India has allowed FDI of up to 100 per cent under the automatic route and bolstered Power Purchase Agreements (PPAs) to ensure timely payments to power generators. The Government is also setting up Ultra Mega Renewable Energy Parks (UMREPs) to provide land and transmission on a plug and play basis to investors.
The Government has sought to waive off Inter-State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by the end of 2022. India has also streamlined the bidding process for the procurement of solar and wind power at competitive rates while laying transmission lines under the Green Energy Corridor Scheme for the transfer of power from renewable rich states. Additionally, the Government has been encouraging indigenous manufacturing of renewable energy equipment and products with favourable policies and financial incentives. The aim is to build an end-to-end renewable energy industry. Solar and wind hybrid projects are simultaneously being pursued.