Promotion of renewable energy

Promotion of renewable energy

Subject : Government Schemes

Context: A study was carried out by Central Electricity Authority, Ministry of Power with an objective to project the Optimal Generation Capacity mix for 2029-30, the results of which were published in January, 2020.

Concept:

• According to the study, the estimated electricity generation from renewable energy sources was assessed to be 39% of the total electricity generation by the year 2029-30.
• Government have taken several steps to promote renewable energy in the country to achieve the goal of 500 GW of non-fossil fuel capacity by 2030.

Steps taken:

• Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
• Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by June 2025
• Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030.
• Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis.
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc.,
• Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power.
• Setting up of Project Development Cell for attracting and facilitating investments.
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.