Renewables, With Renewed Vigour

The Economic Times 26th November 2020 Save

Context: Since renewable energy has become the centrepiece of India’s electricity plans, various measures have been taken by the government to shift its focus towards renewable energy.

Measures taken by the government to shift towards Renewable Energy (RE):

Developing Paris Climate Change targets:
- To reduce emissions: by 33-35% from 2005 levels.
- Switch to non-fossil fuels: About 40% of electric power generation from non-fossil fuels by 2030.
Rise in RE capacity:
- Total RE capacity has grown 2.5 times and solar 13 times, since 2014; making India 4^th largest in the world.
- RE contributes to 24%(36% including hydropower) to installed power capacity and 12% to total electricity generation.
- Total renewable energy(RE) capacity of 175,000MW to be achieved by 2022, with 100,000MW from solar and 60,000MW from wind.
Attracting investments: During the last six years, India has attracted over Rs 4.7 lakh crore investment, including FDI of about Rs42,700 crore. Following measures were adopted -
- Waiver of Inter-State Transmission System (ISTS) charges and losses, for sale of solar and wind power.
- Renewable purchase obligation trajectory (excluding hydropower), that sets RE targets for states.
- Maintaining sanctity of contracts through focus on standard bidding guidelines.
- Establishing dedicated project development and foreign direct investment (FDI) cells.
- Putting in place payment security mechanisms like mandating Letter of Credit requirement.
- Permitting FDI up to 100% under the automatic route.
- Extension for projects that faced COVID disruptions.
Solarisation of agricultural feeders:
- The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme aims to enhance farmers’ income, reduce diesel use, ensure availability of power and water supply, and reduce the subsidy burden on states.
Global Actions: The International Solar Alliance (ISA) will help countries around the world to align domestic priorities with global sustainability commitments.

Conclusion: Not only will India move towards sustainable energy systems but it will also provide plenty of employment, business and investment opportunities.