India generated 33029.39 MU Wind Power & 7447.92 MU Solar Power Generated during Year 2015-16

The Minister of State for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal informed that the generation of electricity from wind and solar sources in the country stood at 33,029.39 million units and 7,447.92 million units, respectively, during 2015-16.

Quoting the figures received from the Central Electricity Authority (CEA), the minister said during the last two years, i.e., 2014-15 and 2015-16, the country added a total of 5,735 MW of wind power capacity and 4,131 MW of solar power capacity.

It was also told that a capacity addition target of 4,000 MW and 12,000 MW has been proposed for generation of electricity from wind and solar energy, respectively, during 2016-17 and a total of 315 MW have been installed under Solar Roof top Scheme. Power generated from these projects is being used for both domestic and captive use, the minister informed.

Goyal stated that tenders for 20,766 MW solar power projects have been issued. He also said that the wind power projects are mainly developed by private sector under various modes, including PPA, REC, captive use, third party sale etc, adding that the centre has not undertaken construction of wind energy project.

  • The ministry is implementing several schemes to promote generation of solar and wind energy. These include: Development of solar parks and ultra mega solar power projects
  • Development of solar PV power plants on canal banks / canal tops
  • Setting up of 300 MW grid connected solar PV power projects by defense establishments under ministry of defense and Para military forces with viability gap funding (VGF) under Batch-IV of Phase-II/III of Jawaharlal Nehru National Solar Mission (JNNSM)
  • Setting up 1,000 MW grid-connected solar PV power projects by CPSUs with VGF under Batch-V of Phase-II of JNNSM
  • Setting up of 15,000 MW grid-connected solar PV power projects under Batch II of Phase II of National Solar Mission (by NTPC/NVVN)
  • Setting up of 2000 MW grid-connected solar power projects with VGF through Solar Energy Corporation of India (SECI) and generation based incentive scheme for promotion of wind power.

The press release can be accessed here.

 

 

 

India’s Energy Mix to Have 40% Renewable Sources by 2030

The Renewable energy holds a share of 12% in the current energy mix of India. As a part of its contribution under the Paris Climate Change Agreement, India sets target of achieving at least 40% of India’s total power capacity from renewable sources by 2030.

If the National Democratic Alliance approves the proposal then India would be looking to building a total of 350 GW of solar and wind power by 2030. This ambitious target will help India offer a 35% reduction in the greenhouse gas emission intensity of its economy below 2005 levels by 2030.

The above update has been taken from Business Standard’s article published on 22nd September, 2015 which can be accessed here.

Union Budget FY 14-15 Highlights (Power Sector View Point)

Honorable Finance Minister Mr. Arun Jaitely presented the Union Budget on 10th July, for the financial year FY 14-15. The Finance Minister during his speech of the Union Budget has made some important announcements for the energy industry.

In the Power and Renewable sector perspective, these were the prime focus areas:

  • The Finance Minister extended the 10 year tax holiday for power companies who start production and distribution by March 31, 2017.
  • Rs. 500 crore has been allocated for Setting-up of Ultra Mega Solar Projects in Tamil Nadu, Rajasthan, Gujarat and J&K to promote the Renewable energy.
  • Allocation of Rs. 400 Crore for launching a scheme for solar power driven agricultural pump sets and water pumping stations for energising one lakh pumps.
  • Allocation of Rs. 100 crore for the development of 1 MW Solar Parks on the banks of canals.
  • The Ministry also allocated Rs.100 crore for cleaner thermal energy scheme.
  • Extension of the concessional basic customs duty, of 5 percent, to machinery and equipments required for setting up solar projects.
  • A sum of Rs. 500 cores has been allocated for strengthening of transmission and distribution infrastructure in rural areas under the ‘Deendayal Upadhyaya Gram Jyoti Yojna’.
  • Clean Energy Cess on coal has been increased form Rs.50/ton to Rs.100/ton, to raise more revenue for National Clean Energy Fund, that provides financial support to entrepreneurial ventures and research in the field of clean energy technologies.
  • Apart from these, the government has also said that they are committed to provide 24*7 Electricity to all the households in the country.

As can be inferred from the above, no time frames have been mentioned for some of the above mentioned schemes, but it is expected that concrete guidelines will be laid down with subsequent orders and notifications on the same.

Contributed By: Dheeraj Babariya

MERC Allows Solar Open Access in Maharashtra

MERC (Maharashtra Electricity Regulatory Commission) through an order on 6thMay 2014, has allowed Open Access for the Solar Power in Maharashtra.

The order has come in response of a petition filed by GEA (Green Energy Association – an association whose members are investors in Solar REC space), wherein GEA has requested MERC to direct MSEDCL to issue the Open Access permissions to the solar power generators of the state and also to issue credit notes for the energy injected by the solar generators into the system till date.

The Regulatory Commission said that petition filed by GEA stands disposed of, citing the reason that MSEDCL cannot be partial towards any particular RE Source, and it has already granted Solar OA permission to BEST in Mumbai.

However the Commission has directed MSEDCL to allow the Open Access through solar generator as single source only, as Distribution OA through multi source is in the process of amendment. The Commission also directed MSEDCL to continue the procedures followed for allowing Open Access permissions through RE generators during previous financial year, and to issue all pending credit notes till date.

The detailed MERC order can be accessed here

Our previous blog on MERC RE Tariff can be read here

RERC Draft Solar Tariff Policy for FY 2014-15

Rajasthan Electricity Regulatory Commission(RERC) on 23rd June 2014, has proposed a levellised tariff under a draft regulation (RERC Terms & Conditions for Determination of Tariff for Renewable Energy Sources – Wind and Solar Energy Regulations, 2014) issued for Solar power generators of the state. The brief summary of the proposed draft is as below –



RERC has invited the comments and suggestions by 18th July 2014, and a hearing on the matter will be held on 31st July 2014 at RERC’s office, Jaipur.

The tariff proposed for FY 14-15 is lower than the tariff of previous year in case of Solar PV and Rooftop Solar PV, and is higher in case of Solar Thermal Power Plants. It can be said that the reason behind the reduction in the tariff of Solar PV is because of decreasing prices of Solar PV cells and overall project execution cost.

The RERC draft order can be accessed here

India to Launch Bidding for 1500 MW of Solar Power Projects under JNNSM

India under its JNNSM (Jawaharlal Nehru National Solar Mission) is about to launch bidding for 1500 MW of solar power projects.

The bidding will come under the JNNSM Phase 2 Batch 2, which aims to achieve 10 GW of solar power by 2017, and as a part of this phase the government has already tendered 750 MW of solar power projects earlier in January this year, and plans to have a total of 20 GW of solar power capacity by 2022. The solar power produced under this phase would be bundled with the conventional power and will be sold to distribution licensees at an average rate of power purchase (APPC).

The selling and bundling of power would be handled by NVVN (NTPC Vidyut Vyapar Nigam), a subsidiary of India’s power giant NTPC. According to NVVN officials the cost of bundled power would be around Rs. 4-4.5 per unit.

The development is confirmed by Mr Tarun Kapoor Joint Secretary MNRE saying that – “We are in consultation with all the stakeholders and would come out with bidding guidelines soon, most likely the bidding would commence by July-August”.

Mr. Piyush Goyal (Hon’ble Minister of Power, Coal and New & Renewable Energy in the Government of India.) had given an indication earlier about setting up higher targets and advancing the timeline of the Solar Mission. “With both power and renewable energy under the same minister, it was easy to co-ordinate with the power department to allocate conventional power for bundling solar power“, said a senior official at the (MNRE).

The last batch of bidding under JNNSM had fixed the tariff at Rs. 5.45 per unit supported with viability gap funding. A senior MNRE official said that “it was effort of NVVN that the cost of solar power came down by Rs. 8-10 per unit from Rs. 17 per unit in 2011 “, also added that the ministry is hopeful of achieving grid parity by 2017.

You can access our earlier blog post on the results of JNNSM Phase 2 Batch 1 here.

Recent media article can be accessed – Economic Times

MoP at odds with proposal of Commerce Ministry on imposing solar duties

Power minister Mr. Piyush Goyal has reportedly given a statement which goes against the proposal of Ministry of Commerce to impose solar duties on imported equipments. An article in Bloomberg says that as per Mr. Goyal, solar duties will undermine PM’s vision of fostering solar generation in the country. He adds that India currently doesn’t have adequate solar manufacturing capacity to catch up with national targets. India’s transport minister Mr. Nitin Gadkari also holds same views.

The decision must have brought a lot of cheer to lobby and industry associations striving hard against imposition of such duties. A background of the case is detailed below –

Background –

Directorate general of anti-dumping & allied duties (DGAD) under Ministry of commerce and Industry had recommended to impose steep anti-dumping duties on import of solar products like US, China, Malaysia, Taiwan etc. By such levy of duties, DGAD wants to secure favourable market condition for domestic solar manufacturing cos. The DGAD has recognized that despite huge potential of manufacturing, India has negligible capacity operational.  To bolster the fate of Indian solar equipment manufacturers, India had introduced DCR in NSM, but following a dispute with US at WTO, some other means to check dumping was required.

Although DGAD paid heed to complaints raised by Indian manufacturing association, many solar experts across India fear that imposing of such duties is going to adversely affect the growth of solar sector in India.  Intense lobbying against such a decision has been observed. MNRE is also voting against imposing anti-dumping duties.

It is expected that anti-dumping duties are going to make projects selected under open category of NSM also unviable. On the flip side, Indian manufacturing still lags on technological front and the quality of products domestically manufactured is inferior to their imported counterparts. Solar power developers argue that both quality and price is going to be affected if the Min. of Commerce & Industry favours levy of anti-dumping charges.

Recent media articles can be accessed –

PV Tech

Hindu Businessline 

Moneycontrol

Economic Times

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