The Government has revised its target of renewable energy capacity to 175 GW by end of 2022, making it the largest expansion in the world and providing plenty of opportunities for investors. The target capacity is as shown below:
The UN Environment Program’s (UNEP) ‘Global Trends in Renewable Energy Investment 2016’ report ranks India among the top ten countries in the world investing in renewable energy. The Government is also committed to Clean Energy and is driving efforts to achieve 40% power installed capacity from non-fossil-fuel-based energy resources and reducing emissions by 33-35% of its GDP by 2030.
The New & Renewable Energy sector has witnessed the highest ever-solar power and wind power capacity addition over the last two years since April 2014.
Key achievements in the sector during the last 2 years are:
As on October 31, 2016, cumulative capacity of 46.33 GW grid interactive renewable energy capacity has been installed in the country, which constitutes 15% of the total installed power generation capacity of 307.69 GW.
3575 MW capacity has been added from various renewable energy sources as on October 31, 2016 for FY2016-17.
Policy Initiatives & Investments
100% FDI is allowed under automatic route for projects of renewable power generation and distribution subject to provisions of The Electricity Act, 2003.
FDI Equity Inflow
Total FDI equity inflow in the non-conventional energy sector during April 2014 to September 2016 was USD 1.77 billion. The major FDI equity inflow in the sector are provided in the below table.
|Foreign Collaborator||Country||Indian Company||FDI Equity Inflow (USD Million)|
|MUDAJAYA Corporation Berhad||Malaysia||RKM Powergen Pvt Ltd||77.18|
|GAMESA EOLICA S L||Spain||GAMESA Wind Turbines Pvt Ltd||66.76|
|AIRRO (Mauritius) Holdings||Mauritius||DILIGENT Power Pvt Ltd||62.44|
|Greenko Mauritius||Mauritius||M/S GREENKO Energies Pvt Ltd||59.52|
|Azure Power Global Ltd||Mauritius||AZURE Power India Pvt Ltd||54.11|
|ORIX Corporation||Japan||TADAS Wind Energy Private Limited||53.23|
|OSTRO Renewal Power Ltd||Mauritius||OSTRO Energy Pvt Ltd||45.81|
|Asian Development Bank||Philippines||Renew Power Ventures Private Lim iteda||44.69|
|AIRRO Singapore Pte Ltd||Singapore||DILIGENT Power Pvt Ltd||41.07|
|ORIX Corporation||Japan||LALPUR Wind Energy Private Limited||37.75|
|ENEL Green Power Development B.V.||Netherlands||BLP Energy Private Limited||32.61|
|DEG-DEUTSCH E-I nvestitions- Und-Entwicklun||Germany||WELSPU N Renewables Energy Pvt Ltd||32.50|
|ENERK International Holdings Ltd||Seychelles||RKM POWERGEN Pvt Ltd||32.50|
|OSTRO Renewal Power Limited||Mauritius||OSTRO Energy Pvt Ltd||32.21|
|AREVA Solar Inc||U.S.A||AREVA Solar India Pvt Ltd||31.53|
The Government has provided a whole host of financial and fiscal incentives for promoting renewable energy projects.
– A capital subsidy of 30 percent of the project cost for general States/UTs and 70 percent for Special category States (North East including Sikkim, Uttarakhand, HP, J&K, Lakshadweep, Andaman & Nicobar) excluding industrial and commercial establishments.
– Inclusion of roof top solar as part of housing loan by banks/NHB
Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects
MNRE launched the scheme for development of Solar Parks and Ultra Mega Solar Power Projects on December 12, 2014. 25 Solar Parks with capacity of 500 MW and above (smaller parks of lesser capacity for Himalayan and hilly regions) and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity will be set up within a span of 5 years starting from 2014-15.
Scheme for Development of Solar PV Power Plants on Canal Banks/ Canal Tops
“Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops” was approved on December 5, 2014. A target of 100 MW Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops (50 MW on Canal Tops and 50 MW on Canal Banks) has been set. Some of the incentives under the scheme are:
Other Incentives to promote renewable energy projects
Ease of Doing Business
About 98,000 people work in the four major areas of renewable energy i.e. Solar, Wind, Biomass and Small Hydro Power.
To meet the rising demand and manage the gaps in capacity of trained manpower, the Government in May 2015 set a target of achieving 50,000 “Surya Mitras” of skilled manpower in solar energy sector by 2019-20.
5,492 Surya Mitras have been trained under the program as on September 30, 2016 with over 150 institutes across the country implementing the Suryamitra program and creating job opportunities for unemployed youth. Currently,
3000 are undergoing training.