Piyush Goyal PM NARENDRA MODI: Upendra Tripathy

Minister of State for

Power, Coal and New & India is graduating from Secretary
Ministry of New &
Renewable Energy
Pg 3
MW to GW in RE Renewable Energy
Pg 5
` 100 $ 5 € 3
www.energynext.in

Volume 6 Issue 07 May 2016 Hyderabad Your guide to Renewable Energy

RNI NO.: APENG/2010/38296 Date of Publication: 18/05/2016 Date of Posting: 20/05/2016

SPECIAL EDITION

Policy
Push
100,000 MW

Breaking Barriers
Powering Ambitions
SOLAR

60,000 MW

10,000 MW
WIND

BIO POWER

5,000 MW
SHP
 Preface
India has set a renewable energy target of 175 GW of renewable energy by 2022 that comprises 100 GW of solar
power, 60 GW of wind power, 10 GW of biomass and 5 GW of small hydro power. Our renewable energy programme
comes as an article of faith. We also look at it as an opportunity to set right what went wrong in the past, to correct the
imbalance in the environment. India is set to become the biggest energy market. Affordability, access and inclusiveness
are driving India’s energy policies. We as a country have the capability to lead global efforts to take on the challenge of
climate change and will remain in the forefront of harnessing solar and other forms of renewable energy to make the
world a better place to live.
In the last two years, there has been unprecedented interest and growth in the renewable energy sector. This is the
second year in a row that renewable energy sector has exceeded the target and about one-fourth of the overall addition
during 2015-16 is from renewables. As against the target of 4,460 MW, the renewable energy sector achieved capacity
addition of 7,052 MW in 2015-16. The country is set to become the largest energy market representing the aspirations
of a billion plus people in the coming years. India, which is projected to see its demand quadrupling in the coming
years, will also lead the way in scaling up energy efficiency in line with its commitments towards combating the
challenges of climate change. The idea is to make power available to all at affordable prices. Our policies have to make
a difference to the last man at the bottom of the pyramid and change his life for the better.
India is among the few nations that have imposed a carbon tax besides measures for scale up of energy efficiency
and de carbonise the transport industry. One of the key provisions in the Union budget 2016 was doubling of
the coal cess to Rs 400 per tonne, which will be used for development of renewable energy resources and various
environmental protection measures.
We have seen how solar tariffs have dipped through competitive transparent bidding and with a clear roadmap to
develop Renewable Energy in bringing down costs. Out of the total 6,763 MW of installed capacity of solar, 3,019 MW
has been added in the last year. Wind also recorded the highest capacity addition of 3,415 MW. I am sure this trend
would continue and every year we would out perform the previous year.
The International Solar Alliance (ISA), launched by the Hon’ble Prime Minister in November last year on the
sidelines of COP 21 at Paris, will open a trillion dollar opportunity to serve humanity. The ISA which comprises of
121 countries that lie partially or fully between the Tropics of Cancer and Capricorn is intended to create a platform
for larger collaboration for technology, research and development and capacity building. Terrawatt Initiative is based
on the success of the Indian practice.The ISA aims at scaling up solar energy and aggregating and harmonizing the
demand across solar rich countries building a common buyers’ market for solar rich countries.
I see India playing a major role in the Renewable energy development in coming years.
 Preface
Renewable energy holds great promise for enhancing energy security and affordably mitigating climate change.
Renewable Energy is not electricity alone but it is a package of health and environment. Renewable generation costs
have declined due to sustained technology progress, improved financing conditions and expansion of deployment
to newer markets with better resources. With falling renewable energy prices, it is becoming easier to solve the
simultaneous equation of environmental sustainability and development.
The cost of funds is the most crucial component for undertaking renewable energy projects. The government has
urged lending agencies, including banks, financial institutions and NBFCs, to take ethical responsibility for funding
green projects. The Ministry has also assured banks and other funding agencies that the Government of India has put
in place an elaborate eco-system to support green projects and it is now up to the lending agencies to help bring down
the cost of capital to realise the target of generating 175 GW of renewable energy. Initiatives of the Government of
India to encourage funding of renewable projects include concessional excise and customs duties, setting up of a green
energy corridor for evacuation of power, priority sector lending for renewable energy projects up to Rs 15 crore, home
loans clubbed for rooftop projects, standardisation of PPA etc. are playing very important role. As many as 40 banks /
FIs have submitted their commitments for financing more than 78 GW renewable energy projects.
India has the potential to leapfrog to a development paradigm mainly based on increasingly affordable renewable
power. With excellent solar and wind resources, improving cost-effectiveness and policy momentum, renewables can
play a critical role in supporting economic growth and energy access. A major area of concern that has a direct link
to economic growth is the power supply to agricultural sector. With roof-top solar models and hybrid solar/diesel
systems in the market, this problem is now being slowly addressed. Currently, there are 10 million diesel-run water
pumps in operation, which would slowly be replaced with solar water pumps.
There are several domestic and international players active in the renewable energy space, especially in the solar
sector. Apart from FDI, MNRE is also trying to bring the World Bank and ADB on board for rooftop projects,
which can be passed on to the banks to enable them to finance the projects on soft rates of interest. The Ministry has
got commitment of 1 million Euros from KfW, Germany and further negotiating with different agencies to get more
capital for the RE sector.
Our renewable energy generation target of 175 GW by 2022 is a challenge and a huge opportunity between
technology, financing, Government policies and investor perception. The State Governments have a much bigger
responsibility and we have to develop confidence in the investor that his investment is safe and would get him
appropriate returns.

Place: New Delhi

Date: 10.05.2016
IN THIS ISSUE VOLUME 6 | ISSUE 7 | May 2016

w w w . e n e r g y n e x t . i n

16 30 43 70
MNRE news
In Conversation
Upscaling of RE targets
Cover
‘Renewable energy sector India will surely
achieve 10,500 MW
to see explosive growth in solar power: Goyal
the coming years’
Dr Ajay Mathur, Director General, TERI, shares
his vision and challenges on India’s ambitious
renewable energy target of 175GW by 2022.

With the renewable energy target

of 175 GW by the year 2022,
India will become one of the
44
State Policies
largest green energy producers
in the world, surpassing several
developed countries.
States are the wheels for
Renewable energy in India records India’s RE surge India will definitely achieve the
high growth in 2015-16 34 target for enhancing solar power
capacity and add 10,500 MW in the
The total new capacity addition in the renewable energy sector in the New policies and Andhra Pradesh Karnataka Tamil Nadu current fiscal, said Minister of State
(IC) for Power, Coal & New and
country in 2015-16 has surpassed the target.
schemes lead RE to Assam Kerala Telangana Renewable Energy Piyush Goyal.

realise its potential Bihar Madhya Pradesh Uttar Pradesh

18 Chhattisgarh Maharashtra Uttarakhand 72
PM: India is graduating Goa & UTs, Manipur West Bengal Clean Transition
from MW to GW in RE Gujarat, Haryana Meghalaya Chandigarh Germany’s
India’s stress on renewable energy is not aimed Himachal Pradesh Odisha Delhi Energiewende
at impressing the world, but to meet our own
people’s energy requirements says PM Modi J&K Punjab
inspires worldwide
First time ever India exceeded
renewable capacity addition targets
Jharkhand Rajasthan

20 in solar and wind. These policies and

‘Renewable Energy
deployment continues to
surge around the globe’
India has recorded a figure of 6,937 MW during
April, 2015 to March, 2016, taking the total
installed capacity from renewables to 42,771 MW
schemes are taking the renewable
energy sector forward
38
Long term targets with reliable
33 Solar parks to be policies and regulatory frameworks
setup across India created security, reduced costs of
finance and attracted private sector
investment, writes Tobias Winter.
With the world
taking notice of

24 the burgeoning
carbon emission
problems
that come
79
Global partnership for with burning IREDA Corner
clean energy fossil fuels,
solar energy IREDA wins SCOPE award
The Indian government now has an unparalleled is becoming
opportunity to join forces with the private sector, increasingly IREDA was awarded the “SCOPE Award for
international institutions, and other countries. popular. Excellence and Outstanding Contribution to
the Public Sector Management

May 2016 | Energy Next | 7

 letters to the editor FROM the editor

Walking the green path

​ aryana has clearly emerged as the top choice of
H
Green energy takes shine off coal
investors from across the globe. The Happening Haryana business in India. It has democratised energy
investment summit saw more than Rs 100,000 crore of Enabling Investment Environment production and consumption. Today there
investment proposals coming from domestic and global Editor-in-Chief K S Popli is a solar energy market in which even small
investors. The investments that have come to the state Publications Director Anupam Daftuar entrepreneurs, civil society organisations
are commendable. I belong to Haryana and this certainly Associate Editor Orchie Bandyopadhyay and start ups are involved in generating and
makes me proud. The state is growing and will soon stand Sr. Correspondent Pari Saikia distributing solar-based energy and selling
out in the country in terms of its growth and will surely Correspondent Surbhi Mehtani solar products.
contribute to the country’s economy. Design Flying Tusker Media This accelerating trend is because of
ll Kishore, Ambala Marketing Manager Abhinav Dutta government policies, lucrative subsidy
Marketing Executive Aditya Daftuar programmes and initiatives. During the
Subscription & Dispatch Anil Patwal current year India is likely to install 12
Budget, a game the actions and opinions of of installed solar energy GW of solar. So looking at these figures
changer future generations. The need capacity, this opportunity by themselves, growth in India has been
For the latest Renewable Energy news.
​I read the article in your last to educate children about is still untapped and impressive and the targets are also remarkable.
log on to www.energynext.in
issue by Kirith S Parikh. I the impact of climate change underutilised. Rooftops In percentage terms, we are doing great.

agree with him that it is not is a must. In fact, most
an easy task to prepare the children the world over don’t
Budget when one has to keep receive any formal academic
in mind the needs of around reasoning to put the vast
1.32 billion people. The amount of information and
best thing about this years’ opinions into context. After
Budget is the fact that it reading your story on the
focuses on agriculture which Science Express, I believe
was an ignored subject. The SECAS ​is doing a very noble
contribution made to each job as it empowered students
panchayat can help in the to ask their own questions
development of rural areas. and gave them the tools to
The implementation of find and understand the
all these initiatives will be answers themselves.
worth watching. ​ll Sarita Pandey, Maharashtra
​ll Piyush, Delhi​
More solar schools
​ limate education is
C needed
a must ​ ​​While many schools have
Preventing climate change already realised the cost
in the future is down to savings and other benefits
Feedback: Please send your feedback and comments to
editor@energynext.in
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Prof Rangan Banerjee Arun Gupta Dr Praveen Saxena K P Sukumaran
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B
in school properties are That’s why India’s leadership in
excellent candidates for Energy Next is printed by R Ramprasad and published y 2030, India plans to meet 40 to sell electricity generated in sunny Rajasthan establishing the International Solar Alliance
rooftop solar photovoltaic by R Ramprasad on behalf of percent of its energy needs with for Rs 4.34 per kilowatt hour, roughly the (ISA), which was launched at the UN
Focal Point Media Services Pvt Ltd
systems. I really wish that renewables, and thus create more same price as some recent coal projects. India’s Climate Change Conference in Paris last
#407, Fifth Floor,
schools in my city too Pavani Plaza, Khairatabad, jobs, increase exports and reduce massive bet on solar power is paying off far November, is a part of New Delhi’s big
adopt solar. It would really Hyderabad - 500 004 AP, India. its energy dependence on fossil fuels. India is earlier than anticipated. bet on solar. The ISA, comprising of over
help students understand Focal Point Media Services Pvt. Ltd. is a joint now looking at a commitment of building a States including Haryana, Andhra 120 solar-rich countries, lying fully or
venture of Gateway Media Pvt. Ltd, and Invision
the importance of Communications & Research Pvt. Ltd, and printed at
total of 350 GW of solar and wind power by Pradesh, Gujarat, Telanagana, Karnataka, partially between the Tropics of Cancer and
adopting green energy and M/s. Kala Jyothi Process Pvt. Ltd. 2030. Out of this, the government expects 250 Punjab, Rajasthan, Telangana, Assam, Odisha Capricorn, is a tremendous step forward for
provide deep reductions 1-1-60/5, RTC Cross Roads, Musheerabad Hyderabad GW of the renewable portfolio to come from among others are restating their commitment India on the world energy and environment
- 500 020, and Published at Focal Point Media towards promotion of renewable energy by stage. The overarching objective is to provide
in greenhouse gas. But, solar power and 100 GW from wind power.
Services Pvt. Ltd.
most importantly, solar #407, Fifth Floor Pavani Plaza Khairatabad,
With 300 days of sunshine a year, India has introducing progressive solar policies which a vibrant platform to bring together countries
installations on schools Hyderabad - 500 004 AP. India. placed a big bet on solar energy. Considering aims to drive forward reforms and prepare with rich solar potential to aggregate demand
can provide teachers with Tel: +91 40 233 000 61, 233 006 26 the initial trends in the solar energy cost the states for renewable energy integration in globally, potentially reducing prices and
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a unique opportunity to and the installed capacity, the signs are very partnership with the private sector. The states promoting collaborative R&D.
teach concepts in science, encouraging and the government’s goal to also have a single window clearance system With the cooperation of the other
Editor-in-Chief: K S Popli
technology, engineering, Subscribe: Phone: +91 11 2642 4071/72
achieve the target of 175 GW of clean energy to promote investment in solar power. nations that constitute the ISA steering
and mathematics and pique e-mail : subscribe@energynext.in by 2022 (of which 100 GW is from solar and At the COP 21 Paris summit, most nations committee, India’s position as a world
student interest in these Write to: Focal Point Media Services Pvt. Ltd. #409, 60 GW is from wind) is realistic. agreed to keep global temperatures capped leader is significantly enhanced. India,
Mansarovar Building,
critical subjects. The aggressive target for renewable at 2 degrees Celsius above the pre-industrial through its domestic solar bet and the
90 Nehru Place,
​ll Deepa Singh, Haryana New Delhi-110 019, INDIA energy capacity was worked out by the levels, and even try to achieve the cap of International Solar Alliance, can have
Phone: +91 11-26424071/73 power and environment ministries under 1.5 deg Celsius. India has a key role in this a transformative effect on the way we
Fax : + 91 11-46507580 close supervision of the Prime Minister’s ambitious target and is all set to convert this harness solar energy and find
Office. Prime Minister Narendra Modi crisis into an opportunity and achieve the its place in the sun.
Please note: Views expressed in the articles are those has chosen an unswerving path to achieve twin aims of economic development and
of the Authors and may not be shared by the editor or higher economic growth and also reduce environment preservation.
members of the editorial board. Unsolicited material India’s carbon footprint and greenhouse At present, renewable energy sources
will not be returned.
gas emissions. account for about 8 percent of India’s total
Copyright: No material published here should According to KPMG, solar prices are now energy consumption with installed solar
be reproduced in any form without prior written
permission from Focal Point Media. within 15% of coal. If the trend continues, solar capacity at 6.7 GW. Installation of solar
energy will actually be 10% cheaper than coal energy for power is growing at an annual rate
S Chandra Sekhar Yogesh Mehra
Managing Director Managing Director energy by 2020 – much earlier than previous of 25 percent.
MNRE Bhoruka Power Corpn Ltd Wind World (India) Ltd
studies suggested. At a recent government Over the last couple of years, the growth of
Write to auction for solar projects, the winning bidder, solar energy has drastically altered the energy
Focal Point Media Services Pvt. Ltd.
409, Manasarover Building Finnish state-run utility Fortum Energy, offered
KS Popli
90, Nehru Place
New Delhi - 110 019
Chairman & Managing Director, IREDA

8 | Energy Next | May 2016 May 2016 | Energy Next | 9

 NATIONAL
Solar power to save Rs 12 crore per year for IGI
I n a bid to save costs and reduce its carbon
footprint, the Indira Gandhi International
Airport (IGIA) enhanced its solar power
generating capacity by over three times to
meet a portion of its huge power needs. The
green initiative will save the airport Rs 12
crore annually.
The private air operator, Delhi International
Airport Ltd. (DIAL), has enhanced the current
solar power generation capacity at the IGI
Airport from 2.14 MW to 7.84 MW, making
the airport largely dependent on green energy
“Aligning with the vision of PM Narendra
Modi to harness solar energy to fight climate
change, we aim to increase our solar power
generation capacity to 20 MW by 2020,”
said I. Prabhakara Rao, CEO of Delhi
International Airport Ltd.
India is aiming to add 175,000 MW of
capacity from clean energy sources by 2022: 60
per cent from solar energy, 30 per cent from
wind and the balance from biomass and small
Cost of solar energy is less than that of conventional
energy: Goyal
M aking a strong plea for adopting
solar in rural areas, Minister of State
for Power, Coal and New & Renewable
Energy Piyush Goyal urged industries for
10 | Energy Next | May 2016
hydro.
According to DIAL, the solar power project
has been executed at the Airside of the IGI
Airport after achieving all requisite safety
clearances, and the green field area of the
airside has been utilised without hindering and
compromising the operations’ safety.
To reduce the glare effect, the non-reflective
PV solar panels are installed at the plant.
DIAL has carried out computer-aided solar
glare analysis for 365 days with complete sun
movement from sunrise to sunset to ensure
that there is no impact on flight movement.
15-point action plan by Ministry to link
renewable energy to electricity grid.
A technical committee constituted by the
Ministry of Power on Large Scale Integration
of Renewable has suggested a 15-point Action
Plan for facilitating large-scale integration of
renewables in the country. The committee
has recommended measures such as bringing
flexibility in conventional power generation,
frequency control, generation reserves to
integrate renewable energy into the national
electricity grid.
At present, only six states have issued
the regulations, as there are some pending
actions. These include Regulatory Framework
for Forecasting, Scheduling and Imbalance
Settlement for Renewable Energy Generators
at 23 states.
adopting solar in rural and urban areas in
Pune. He was speaking on ‘India’s Efforts in
Shaping the Global Solar Alliance’ during
a lecture organised by Mahratta Chamber
of Commerce and the Pune International
Centre. Goyal said that the cost of solar is
cheaper than conventional energy based
on fossil fuels and the tariff remains the
same for 25 years and it’s based on natural
resources over which no external agency
has control. He further said that energy
is an important part of our ecosystem and
the setting up of the International Solar
Alliance is a demonstration of our concern
for climate change. .
Investment of
Rs 86,000 crores in
RE projects during
last three years
T otal estimated investment in renewable
energy power projects during the
last three years is around Rs 86,000 crore.
Most of the investments in renewable
energy come from the private sector. As per
inputs provided by the Central Electricity
Authority (CEA), around 15,400 MU
has been generated through solar energy
during the last three years and it has met
the energy requirement to that extent in the
country. This was stated by Minister of State
(IC) for Power, Coal & New and Renewable
Energy Piyush Goyal in a written reply to a
question in the Lok Sabha.
The Minister further stated that the
Government is promoting solar energy
by providing fiscal and promotional
incentives such as capital and/or
interest subsidy, tax holiday on the
earnings for 10 years, generation based
incentive, accelerated depreciation,
viability gap funding (VGF), financing
solar rooftop systems as part of home
loan, concessional excise and custom
duties, preferential tariff for power
generation from renewables, and
foreign direct investment up to 100 per
cent under the automatic route.
Under grid connected solar power
schemes, the developer is decided
through open and transparent
bidding system. Under off grid solar
programme, organisations who are
interested in working in the sector can
be empanelled as channel partners.
The Ministry has empanelled Channel
Partners for grid-connected roof-
top, off-grid and solar water heater
categories.
Railways to harness 1000 MW solar power by 2020
T he Indian Railways proposes to
harness 1000 MW of solar and 150
MW of wind energy by 2020. A total of
about 50MW renewable energy capacity
has been installed till date, including
approximately 11MW solar power and
37MW wind power, Minister of State for
Railways Manoj Sinha said in a written
reply in Lok Sabha.
Banks sanctioned over $10 billion for RE
I ndian banks and financial institutions
have sanctioned large sums of debt
finance over the last 13 months. Most of this
finance has been approved for solar power
projects. Of the total amount sanctioned, Rs
29,500 crore ($4.4 billion) have already been
disbursed.
Banks and financial institutions had
committed to provide finance for 76,352
Tata Power unveils universal App for stakeholders
T ata Power, India’s largest integrated
power company, introduced its digital
interface by launching a universal Mobile
Application for all its stakeholders along
with employees and consumers of Mumbai
and Delhi. The Tata Power Mobile App is
specially designed to be an exclusive platform
to help customers and other stakeholders
to connect and directly engage with the
company.
Commenting on the launch, Anil Sardana,
Chief Executive Officer and Managing
Director, Tata Power, said, “Introduction
of the Tata Power app will provide benefits
NEWS
“Installation of 6.5 MW is in progress
and for about 50 MW solar capacities,
request for qualification (RFQ) has been
issued by zonal railways,” he added.
Such renewable energy plants are being
put up in Railways in an economical
manner to reduce the cost of energy with
viable gap funding from Ministry of New
and Renewable Energy.
Six bidders for AP solar
MW of renewable energy capacity. The total
amount committed by the 40 participants
park auction
entities was Rs 382,255 crore. The
commitments have been made by 24 public
sector banks, eight private sector banks,
four public sector and two private sector
financial institutions during the RE-INVEST
international investors summit organized by
the MNRE in February last year.
A solar park of 400 MW in Andhra Pradesh
saw limited solar auction competition
compared to recent tenders with just six bidders.
Fotowatio Renewable Ventures (FRV), a
Spain based developer company has won its
first project in India with 100 MW, while the
rest of the participants were Indian companies.
The Solar Energy Corporation of India
(SECI) issued the tender with a fixed tariff
of Rs 4.43/kWh (US$0.067) along with viability
gap funding (VGF), which is a funding mechanism
provided by the government of India.
to the customers by giving them access
to information, troubleshoot, get bill
statements and even make payments on the
move.”
One of the primary features of the mobile
app is the specially designed section for
consumers. It includes key features such
as Account overview; Bill Payment at
fingertips; Meter Reading details; Monthly
Consumption trend; Bills and Payment
history of previous 12 months, Notifications
alerts; Zone-wise Outage/Shutdown
information; Registration for e-bill and
e-services etc.
May 2016 | Energy Next | 11
 State NEWs
Madhya Pradesh a pioneer in renewable energy Over 1 crore LED
Investment of over Rs 10,000 crore was
made in renewable energy projects in
M adhya Pradesh has become a pioneer
in the setting up of renewable energy
projects. Renewable energy projects of
1497.33 MW were set up in the financial
year 2015-16 in the state. Last year, 24
percent of the country’s total renewable
energy capacity was set up in the state.
10 MW energy storage project in Haryana
P anasonic India Pvt and AES India
Private Limited together have
reached an agreement to build a 10
MW energy storage facility in Haryana.
The electricity from the battery system
will provide backup and enhance
daily reliability for a Panasonic India
manufacturing site. The AES Advancion
platform will be used, in conjunction
with Panasonic’s lithium-ion batteries.
It will be India’s first large-scale
battery-based energy storage project. “We
12 | Energy Next | May 2016
bulbs distributed at
Rs 80 in UP
Madhya Pradesh. The state’s installed
capacity of renewable energy projects has
gone up to 3018.29 MW.
Wind energy projects did not lag behind
either. During the last fiscal, wind energy
projects of 1261.4 MW capacity were set
up against 3200 MW in the entire country.
Thus, the state’s share in wind energy
projects in the country was 40 percent.
New and Renewable Energy Minister
Rajendra Shukla has congratulated
departmental officers for making Madhya
Pradesh a pioneer in renewable energy.
are excited to bring Advancion, the most
proven energy storage system available
globally, to India. Panasonic delivers high
quality, cost-effective batteries and is a
great partner to be working with as we
demonstrate the value of large-scale energy
storage to commercial and industrial
customers, renewable developers, utilities,
and the grid operator,” said Marty Crotty,
President of AES’ Strategic Business Unit
in Asia.
The Panasonic unit in Haryana was
established several years ago. Adding
energy storage in India is important at this
stage because the country is investing more
in solar and wind, and having the ability to
store electricity is obviously an advantage
that can hasten the transition away from
fossil fuels.
Manish Sharma, President & CEO
of Panasonic India said,“ Panasonic
India’s partnership with AES signifies
the convergence of synergies to deliver
reliable, cost-competitive solutions to meet
growing energy demand. This association
further establishes our commitment and
capabilities to providing smart energy
storage solutions. Set to transform the
energy storage landscape, Panasonic India
looks forward to this association, which
will help offer grid stability and improved
ancillary services.”
T he citizens of Uttar Pradesh have
replaced one crore inefficient bulbs
with energy efficient LEDs, distributed
under the Unnat Jyoti by Affordable
LEDs for All (UJALA) programme. Union
Minister for Power, Coal and New &
Renewable Energy Piyush Goyal handed
over the bulbs to AK Singh, Managing
Director of Purvanchal Vidyut Vitaran
Nigam Ltd. (PUVVNL) in Varanasi.
Given a total target consumer base of
approximately 45 lakhs, UP has been the
fastest state in the country to achieve this
remarkable feat.
On the occasion, Goyal also
announced that the price of the LED bulb
in Uttar Pradesh will now be only Rs 80.
The prices have dropped to Rs 80 because
of the transparent procurement by Energy
Efficiency Services Ltd (EESL) and the
removal of VAT in the state. UP was the
first state in the country to remove VAT
on LED bulbs.
Goyal also launched the National
Energy Efficient Fan Programme
(NEEFP) in UP. Under the NEEFP, BEE 5
star rated ceiling fans of 50 Watt will be
distributed to consumers at an attractive
EMI. The Minister distributed energy
efficient fans to 15 consumers at an event
held in the city. The energy efficient
ceiling fans will be distributed by EESL in
collaboration with PUVVNL.
IIIT-Allahabad to harness solar power
T he authorities of Indian Institute of
Information Technology, Allahabad
(IIIT-A) are planning to set up a state-of-the-art
solar photovoltaic power plant in their campus.
The institute would install a 300 KWp rooftop
plant connected to the power grid at the boys’
hostel. Excess electricity generated by the plant
will be made available to the power grid. This
step will help the institute to partially meet its
own power expenditure.
Somenath Biswas, director of IIIT-A, said,
“The mission is in line with the joint initiative
of the MNRE and HRD Ministry to make
campuses of technical institutions solar-energy
Three rooftop solar units commissioned by NMPT
T he New Mangalore Port Trust (NMPT)
has commissioned solar rooftop power
units with a total capacity of 350 kW. The
units were inaugurated by PC Parida,
chairman, NMPT.
The trust said the port area has reasonably
high solar insolation (5-6 kW per sq.m.).
While a 250kW unit has been set up at the
administrative building, 50kW units have been
Pune streets to light up with LEDs
A round 70,000 light emitting diodes
(LEDs) are set to replace the power-
guzzling streetlights by the end of this year.
Pune municipal commissioner Kunal
Kumar, said, “The administration aims to
replace all streetlights by December 2016.”
efficient. We will use the opportunity to enhance
associated teaching and research activities and
not merely as a capacity-building mechanism”.
Satish K Singh, nodal officer, said the power
plant would be set up at a cost of around Rs
2.40 crore at a rate of around Rs 80,000/KWp
benchmark cost set by MNRE.
set up on the VIP guesthouse roof as well as the
hospital building. The power consumption of all
these buildings is around 1,900 units a day.
NMPT expects to generate 1,100 units of
power a day from the administrative office
building and 225 units each from the other two
units with the installation of the solar panels.
This way, it expects to save Rs 13,392 on power
bill per day.
According to him, the move is a part of
the Pune Municipal Corporation’s (PMC)
smart street lighting project.
As per the project proposal, the
illumination would be controlled according
to the vehicle and pedestrian population
on the road. Censors will be fitted to the
streetlight poles to control them.
PMC aims to save around Rs 1 crore
per year from the project as using LEDs
would reduce the electricity bill by
around 40%.
State NEWS
Gujarat announces
subsidy for rooftop
solar power systems
G ujarat has announced attractive
subsidies for homeowners looking
to set up rooftop solar power systems.
The Gujarat Energy Developer Authority
has announced Rs 10,000 to Rs 20,000
subsidy per kW of rooftop solar power
system for homeowners. This financial
support will be in addition to the 30%
subsidy being offered by the Ministry
of New and Renewable Energy at the
central government level.
The Gujarat government plans to
include 100,000 consumers under
this programme. Once this target is
achieved, the government will review
the programme and decide its future.
Gujarat already has in place net
metering regulations that allow
consumers to install rooftop solar power
systems and inject electricity to the grid.
The state’s solar power programmes
were implemented before the central
government’s National Solar Mission. The
state was also among the first to successfully
implement rooftop solar power systems tied
with a feed-in tariff policy structure.
India plans to have an operational
solar power capacity of 100 GW by March
2022, which includes 40 GW of capacity
from rooftop projects. While the utility-
scale projects have attracted investment
from Indian and foreign developers, the
government has not been as enthusiastic
to promote rooftop solar power systems.
Success in this sector is likely to depend
on the pace of implementation of policies
by the state governments.
May 2016 | Energy Next | 13
 INTERNATIONAL
Caribbean lit with first wind-solar hybrid streetlight
I rish company creates history with
installation of first-ever hybrid streetlight
in Grenada. Irish company airsynergy’s wind
and solar powered off-grid remote power
unit (RPU) is the very first renewable hybrid
streetlight to be installed in the Caribbean
island country of Grenada.
Jim Smyth, CEO, airsynergy, said: “We
are excited that our revolutionary, award-
winning technology is making history. Our
aim and mission is to provide people almost
New Development Bank sanctions $250 mn
T he newly established BRICS (Brazil,
Russia, India, China and South
Africa) New Development Bank (NDB)
gave a $250 million funding to Canara
Bank for a renewable energy project. India
is among the first four countries to get a
loan from the China-based NDB.
The NDB had approved four green
renewable energy projects from India,
China, Brazil and South Africa entailing
Bank financing of $811 million.
The project from India
entails provisioning of a
multi-tranche loan of $250
million to Canara Bank
for lending to renewable
energy ventures.
14 | Energy Next | May 2016
anywhere with reliable, affordable renewable
power source which until now, has been
only a dream. This first for Grenada will help
make people more aware of what is possible.”
The hybrid streetlight made history
following a collaborative pilot project
between New York-based Aris Wind, the
company licensed to sell airsynergy products
in the US and the local Caribbean operator
Grenlec Utilities.
Gerry Ryan, CEO, Aris Wind, said: “As we
sought demonstration sites, end users and
partners throughout the Caribbean Islands,
Grenada’s strong wind and sun resource
made it a perfect place to start our Caribbean
launch and we are delighted that Grenlec
Utilities embraced the project.”
The streetlight is positioned at the highest
traffic area on the island at an area known as
the Sugar Mill Roundabout.
The project will result in generation
of 500 MW of renewable energy and
savings of about 800,000 tonnes of carbon
emissions.
“New Development Bank sanctioned
four loans, including a loan of $250 million
for a renewable energy scheme in India.
Good beginning,” tweeted Shaktikanta Das,
secretary for economic affairs.
This loan is the first such loan from
the development financial institution,
according to officials.
The bank was formed by the BRICS
nations to step up infrastructure funding
in the emerging economies and is
headquartered in Shanghai. Its initial
authorised capital is $100 billion.
IRENA celebrates
5th anniversary
I nternational Renewable Energy Agency
(IRENA) recently celebrated its fifth
anniversary on April 4, as a fully-fledged
intergovernmental organization in the green
and clean energy sector.
In five years, IRENA has expanded
its role as the global voice of renewables.
It is acknowledged as the lead agency for
renewable energy in climate action, with
concrete initiatives profiled at the UN
Secretary-General’s Climate Summit 2014 and
at COP21 in Paris.
“The past five years have witnessed a
dramatic shift in the global energy sector,” said
IRENA Director-General Adnan Z Amin.
SolarReserve, Shenhua
ink 1 GW of solar
thermal projects
S olarReserve and state-owned Shenhua
Group Corporation have signed a
memorandum of understanding to build
1,000 MW of solar thermal projects in China,
a move that will give the California-based
company a strong foothold in a major global
renewables market.
The announcement was made on May
3 in a signing ceremony in Washington
DC attended by US Deputy Secretary of
Energy Dr Elizabeth Sherwood-Randall
and US Deputy Secretary of Commerce
Bruce Andrews.
SolarReserve’s solar storage technology
solves the intermittency issues
experienced with other renewable energy
sources, enabling the delivery of 100%
renewable baseload and dispatchable
power with operational capabilities
comparable to traditional fossil-fired and
nuclear electricity generation methods.
M&A rises with £11bn investment in UK solar
M ergers and acquisitions (M&A) in the
UK solar sector are increasing due to a
£11 billion investment since 2013.
That’s according to a new report which added
the number of deals tracked in 2015 rose by
14%. They represented a total acquisition of £1.6
billion of solar assets.
The report from Clean Energy Pipeline and
law firm TLT stated the first quarter of 2016
“looked equally robust” with deals worth £333
million. It estimated M&A activity will remain
strong as further projects are under commission
Solar PV installation unveiled at Disney World
A new 5 MW solar photovoltaic
installation in the iconic shape of
Mickey Mouse’s head was recently unveiled
at Walt Disney World Resort in Florida.
Clean Energy Corridor in West Africa
T he ECOWAS Regional Center for
Renewable Energy and Energy Efficiency
(ECREEE) will see a clean energy corridor
featuring a combined capacity of 2 GW
developed in West Africa.
The executive director of ECREEE, Mahamma
and will come to market once operational. Maria
Connolly, Head of Real Estate and Energy &
Renewables at TLT said: “The large number of
solar projects brought online in the last two years
has created a large pool of de-risked assets that are
attractive acquisition targets for institutional and
other low risk investors. This is likely to continue
well into 2017.” Many transactions in the early
part of 2016 relate to disposal of operational
projects that were commissioned by 31st March
2015 or the disposal of consented projects that
qualify for the grace period.
The new installation, which is being
operated by the utility company Duke
Energy will provide electricity directly to
Disney’s Florida Resort, in addition to other
nearby resorts and hotels.
The 22-acre project will generate enough
electricity to provide for the equivalent
of the needs of around 1,000 regional
households.
The environmental integration director
at Walt Disney World Resort, Angie Renner,
commented that the new installation would help
the company to “conserve natural resources.”
Disney is currently aiming to slash its net
carbon emissions by at least 50% by the year
2020. The new solar PV installation is part
of the effort to achieve that goal.
Kappiah, said that the corridor will feature
numerous 10 to 15 MW solar PV plants,
accompanied by wind energy and hydroelectric
projects as well.
He added, “In the 2 GW, we have different
contributions from each country. Nigeria wants
to take 1 GW of it, the rest is shared among other
countries, some with 200 MW and some 500
MW. We are going to auction all the projects
under a common system.”
The plans are expected to cleared by the end of
2016. The plan is to tender all of the associated
project capacity at once, primarily as a means
of simplifying the process for the governments
involved, thereby cutting costs.
NEWS
Brazil registers 9.2 GW
of solar projects for July
auction
B razil has registered 9.2 GW of solar
projects for the upcoming auction,
which is going to be held on July 29 this
year. The auction is first of two national
solicitations for solar PV to be held this year
in Brazil.
Brazil’s Power Research Company (EPE) has
granted technical accreditation for 295 PV projects
with a total capacity of 9.2 GW for the reserve
auction, which will be held on July 29, according to
a press release.
To date three national auctions for solar PV
have been held in Brazil and these have awarded
contracts for a total of around 3 GW of projects.
The single largest number of projects approved
by EPE is located in Bahia, a total of 61 with a
combined capacity of 1.6 GW. 42 accredited
projects are located in Piauí, for a total of 1.4 GW.
In São Paulo 44 solar projects are located, with a
capacity of 1.3 GW and in Mato Grosso do Sul
there are 21 projects for a total of 1.2 GW.
There are also accredited projects in the states of
Minas Gerais (27 projects totaling 987 MW), Rio
Grande do Norte (33 projects, 960 MW) and four
other states with less than 600 MW each.
The winning projects in this auction should
begin delivering electricity in roughly two years,
1 July 2018. The solar projects will be awarded 20
year contracts to supply electricity.
In addition to the PV projects, in this first
2016 reserve auction contracts for hydroelectric
generation will be auctioned. EPE has indicated
that it will grant accreditation for 133 hydroelectric
projects of different types and with a combined
capacity of 985 MW.
This auction is the fourth national auction with
a special category for PV projects and the first of
two auctions for PV which is scheduled for this
year. The other auction with a category for PV,
the second reserve auction this year, will be
held on October 28. The projects awarded
in this second auction will begin supplying
electricity in July 2019.
May 2016 | Energy Next | 15
 Cover | Policy Initiatives/achievements
+71 GW
installed in
74 countries Renewable energy in India
records high growth in 2015-16
What’s the The total new capacity addition in the renewable energy sector in the country in 2015-16 has

value of a
surpassed the target. This is the second year in a row that clean energy sector has exceeded
the target and about one-third of the overall addition during the year is reported to be from
renewables. High levels of capacity utilisation and reliability are the cornerstones of this

proven achievement. The fiscal 2015-16 witnessed two major milestones — total installed capacity of
the wind sector crossed 25 GW and capacity addition in solar power segment was for the first
time, close to what wind sector added.

platform? As against the target of 4,460 MW, the clean energy sector achieved capacity addition of 6,938
MW in 2015-16, tweeted Minister of New and Renewable Energy Piyush Goyal.
The sector’s robust growth has translated into sound financials and its prudent
management has ensured that the fundamentals of the sector remain strong
Vestas 2MW platform is one of the most trusted turbines in the wind
industry, built on proven and reliable technology. The new V110-2.0MW™
and are leveraged for further growth and higher returns.
IEC IIIA is our latest addition to the 2MW platform - with its 54 m blades,
this turbine delivers a notable rotor-to-generator ratio producing
a remarkable capacity and yield at low- and medium-wind sites. A perfect
fit for Indian wind conditions.

Since 2002, we have installed more than 13,000 turbines from our 2MW
platform worldwide – a vote of confidence and a track record confirming
with hard numbers that we are delivering on our promise of business case
certainty. After just a few months of operation, the 2 MW platform
operates consistently with a lost production factor below 2% worldwide.
In addition, new upgrades to the turbine can increase annual energy
production by up to 13% compared to V100-1.8/2.0MW™.

With the Vestas 2MW platform we ensure competitive cost of energy and
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To learn more about Vestas, please visit www.vestas.com. Green energy surges ahead, sets new records in 2015-16
Installed capacity Cumulative FY FY 2015/16 Target As Per
Source
by end of 11th capacity As of 2015/16 Acheved 12th Plan 2022 Goal
(on-grid)
Plan (March 2012) March 2016 Goal March 2016 (March 2017)
WIND 17,352 MW 26,743.61 MW 2,400 MW 3,300 MW 32,352 MW 60,000 MW
SOLAR 941 MW 6,762.85 MW 1,400 MW 3,019 MW 10,941 MW 1,00,000 MW
SMALL
3,395 MW 4,273.9 MW 250 MW 219 MW 5,495 MW 5,000 MW
HYDRO
BIO-POWER 3,225 MW 4,946.41 MW 400 MW 400 MW 6,125 MW 10,000 MW
24,914 42,726.77 4,460 6,938 54,914 1,75,000
TOTAL
MW MW MW MW MW MW

(Source: MNRE)

May 2016 | Energy Next | 17

 Cover Policy Initiatives/achievements

PM: India is graduating

from MW to GW in RE
India’s stress on renewable energy is not aimed at impressing the world,
but to meet our own people’s energy requirements, says PM Modi.

P
rime Minister Narendra Modi
described India’s thrust towards
renewable energy production as an
effort to ensure universal energy
access for India’s poor, while speaking at the
inauguration of RE-Invest 2015, India’s first
Renewable Energy Global Investors’ Meet and
Expo, in New Delhi organised by the Ministry
of New and Renewable Energy.
Observing that India has now graduated
from Megawatts to Gigawatts in terms of
renewable energy production, the Prime
Minister said that even today there are lakhs
household of the country. The Prime Minister
asserted that in this age of globalization, we
have no option but to make a quantum leap in
energy production and connectivity.
The Prime Minister asserted that India’s
stress on renewable energy is not aimed at
impressing the world, but to meet our own
people’s energy requirements.
The Prime Minister spoke of the “seven
horses of energy.” He said that so far, India has
focused on thermal, gas hydro and nuclear
power. But now we need to add solar energy,
wind energy and biogas energy.
Modi suggested the possibility of hybrid
energy parks harnessing solar and wind energy
together in an area to maximize benefit. He
also encouraged the installation of solar panels
over water bodies to harness solar energy
as well as minimize surface evaporation. He
further spoke about the need for harnessing
rooftop solar power. In the rural areas, he
stressed on the need for solar pumps to reduce
input costs for farmers. He further spoke about
need for micro-irrigation to conserve water
and enhance crop yield for farmers.
He welcomed initiatives by many state

Achievements of RE-Invest 2015

of families in the country that are deprived
of energy connectivity. He said the fruits of
development will not reach the common man
until energy connectivity reaches every last
The Prime Minister said India is also
working towards evolving a consortium
of about 50 countries that are blessed with
abundant solar radiation. This will aim to pool
research and technological advancements
in the field of solar energy, to improve its
accessibility to the poorest of the poor, and in
the remotest of locations.
governments in this direction. This collective
effort, he said, will truly take the country
“from Megawatts to Gigawatts”. He said that
if any country has the potential to lead the
world in the domain of renewable energy, it
Rs 71,200 crore sanctioned and Rs 29,500 crore disbursed for the Renewable
is India. The Prime Minister said that loving Energy Sector by Banks and Non Banking Financial Companies (NBFCs)
nature and living in harmony with nature is
a part of India’s DNA. At the same time, he
since February 2015.

said, we cannot merely rely on our culture and
traditions to carry us through, but sustained
efforts are needed to make a quantum leap in
this direction.
He called for sustained technological
research in renewable energy; and a thrust
on domestic equipment manufacturing for
renewable energy as part of the “Make in India”
initiative.
R
E-INVEST 2015 saw RE capacity
commitments of over 283 GW
from stakeholders. Further,
there was commitment of over 62
GW of manufacturing of RE equipment in
India. Forty major Banks and Non-Banking
Financial Companies (NBFCs) [Public,
Private Sector Banks & NBFCs and Foreign
Banks operating in India] committed to
provide debt funding to Renewable Energy
Projects aggregating to over 78.75 GW
during the span of next five years.
The Ministry of New and Renewable
Energy had organised the first
Renewable Energy Global Investor Meet
and Expo (RE-INVEST 2015) from 15-
17 February, 2015 in New Delhi.
The Government of India has set an
ambitious target of 175 GW of Renewable
Energy capacities by 2022. Achieving
this target require capital outlay of US $
160 billion including equity of US $ 40
billion. In addition, huge investment is
required for transmission; upgradation
of infrastructure in order to utilise power
generated though Renewable Energy
sources. As such Banks & NBFCs have to
play a major role to provide low cost and
long term financing for these projects.
During the last one year post RE-
INVEST 2015, these 40 Banks & NBFCs
have reported (as on 21 March, 2016)
that they have sanctioned an amount of
Rs 71,201.54 crore to finance the various
renewable energy projects and disbursed
Rs 29,529.57 crore against the sanctioned
amount during this period. Loans
sanctioned by these Banks & FIs for RE
projects are 18.63% of commitments made.
Over the last few years some private
banks in India have signed deals with
development banks to provide loans at
concessional rates. The Indian Renewable
Energy Development Agency (IREDA) is
also providing loans at low rates following
its recent agreements with banks like
KfW, AFD, Nordic Investment Bank,
World Bank, Asian Development Bank,
the European Investment Bank, and Japan
International Cooperation Agency.
The commitments made by country’s
Banks & NBFCs to finance RE projects
and agreements with Foreign Banks &
FIs to provide low cost and on long term
funding are expected to boost the growth
of the Indian renewable energy sector.
(Source: PIB)

18 | Energy Next | May 2016 May 2016 | Energy Next | 19

 Cover Policy Initiatives/achievements

Renewable capacity highlights

‘Renewable Energy
deployment continues to
surge around the globe’
India has recorded a figure of 6,937 MW during
April, 2015 to March, 2016, taking the total installed
capacity from renewables to 42,771 MW,
writes Dr Praveen Saxena

R
enewable generation capacity
increased by 152 gigawatts
(GW) or 8.3% during 2015, the
highest annual growth rate on
record, according to new data released by
the International Renewable Energy Agency
(IRENA). Renewable Capacity Statistics
2016 finds that at of the end of 2015, 1,985
GW of renewable generation capacity
existed globally. India has recorded a figure
of 6,937 MW during April, 2015 to March,
2016, taking the total installed capacity from
renewables to 42,771 MW.
“Renewable energy deployment continues
to surge in markets around the globe, even in
an era of low oil and gas prices. Falling costs
for renewable energy technologies, and a
host of economic, social and environmental
drivers are favoring renewables over
conventional power sources,” said IRENA
Director-General Adnan Z. Amin. “This
impressive growth, coupled with a record
$286 billion invested in renewables in
2015, sends a strong signal to investors
and policymakers that renewable energy
is now the preferred option for new power
generation capacity around the world.”
2015 was a record year for both wind
and solar due in large part to a continued
decline in technology costs. Wind power
grew 63 GW (17%) driven by declines
in onshore turbine prices of up to 45%
since 2010. Solar capacity increased 47
GW (26%) thanks to price drops of up to
80% for solar photovoltaic modules in the
same time period. Hydropower capacity
increased by 35 GW (3%), while both
bioenergy and geothermal energy capacity
increased 5% each (5 GW and 1 GW
respectively) as per the IRENA Renewable
Capacity Statistics 2016
In India, as against the target of 4,460
MW, the renewable energy sector achieved
capacity addition of 6,937 MW in 2015-16.
While Wind witnessed a capacity addition
of 3300 MW, solar has achieved 3018 MW,
400 MW from biomass and about 218 MW
from small hydro. India’s renewable energy
programme comes as an article of faith,
said Minister of New & Renewable Energy
Piyush Goyal at a round table conference
on International Solar Alliance. He is
also confident that India will definitely
achieve the target for enhancing solar
power capacity and add 10,500 MW in the
year 2016-17. 40 Banks and Non-Banking
Financial Companies (NBFCs) have
sanctioned an amount of Rs 71,201.54 crore
to finance the various renewable energy
projects and disbursed Rs 29,529.57 crore
against the sanctioned amount during the
last financial year.
Looking at the regional distribution,
the fastest growth in renewable
generation capacity came in developing
countries. Central America and the
Caribbean expanded at a rate of 14.5%. In
Asia, where additions accounted for 58%
of new global renewable power generation
capacity in 2015, capacity expanded at a
rate of 12.4%. Capacity increased by 24
GW (5.2%) in Europe and 20 GW (6.3%)
in North America.
The analysis of technology wise capacity
addition indicate hydropower accounted for
the largest share of the global total renewable
power generation capacity with an installed
capacity of 1,209 GW, the majority of which
are large-scale plants. Wind and solar energy
accounted for most of the remainder, with
an installed capacity of 432 GW and 227
GW respectively. Other renewables included
104 GW of bioenergy, 13 GW of geothermal
energy and about 500 MW of marine energy
(tide, wave and ocean).
About 95% of wind capacity is now
located in Asia (China and India), Europe
and North America; and 90% of new
capacity was installed in those regions
in 2015 (57.1 GW). Wind energy is
also starting to expand rapidly in other
regions such as South America, where
capacity increased by 3.1 GW (40%) in
2015. The major solar development in
late year was the 48 % increase in solar
capacity in Asia, with 15 GW of new
capacity installed in China and another
10 GW in Japan. An increase of 8 GW in
North America also surpassed the level of
new installations in Europe (7.6 GW) for
the first time.
The growth rates for renewable
generation capacity in developing
economies are the evidence to the strong
business case for renewable energy.
Renewables are now powering economic
growth in the fastest growing economies in
the developing world.
The author is Former Advisor, MNRE and CEO
(design) Skill Council for Green Jobs
(Views expressed by the author are personal) (Source: IRENA)

20 | Energy Next | May 2016 May 2016 | Energy Next | 21

 Cover
Launch of International
Solar Alliance
P
rime Minister Narendra
Modi and French President
François Hollande launched
an International Solar Alliance
(ISA) at the CoP21 Climate Conference
in Paris on 30 November as a special
22 | Energy Next | May 2016
platform for mutual cooperation among
121 solar resource rich countries lying
fully or partially between Tropic of
Cancer and Tropic of Capricorn. The
alliance is dedicated to address special
energy needs of ISA member countries.
On 25 January, Modi, and Hollande
laid the foundation stone of the ISA
headquarters and inaugurated the interim
secretariat of the ISA in the National
Institute of Solar Energy (NISE), Gurgaon.
Besides contributing Rs 175 crore for
the ISA corpus fund and meeting all
expenditure for the initial five years, the
government will provide 5 acres of land in
the NISE campus for the construction of the
ISA secretariat. The French Development
Agency will allocate €300 million to
developing solar energy over the next five
years in order to finance the initial projects.
The ISA is India’s first international
and inter-governmental organization
headquartered in India. ISA is part of the
Prime Minister’s vision to bring clean and
affordable energy within the reach of all and
create a sustainable world. It will be a new
beginning for accelerating development and
deployment of solar energy for achieving
universal energy access and energy security
of the present and future generations.
The participants, mostly in Latin
America and Africa but also including
the US, China, and France, would work
together to increase solar capacity across
emerging markets.
India signs Paris
Agreement
E
nvironment Minister Prakash
Javadekar signed the Paris
Agreement on Climate Change at
the UN headquarters in New York
on 22 April 2016.
As many as 175 countries, including India,
China and the US, signed the agreement in
the UN General Assembly hall at a high-level
ceremony hosted by UN Secretary-General
Ban Ki-moon.
Earlier, the Union Cabinet gave its approval
for signing the Paris Agreement adopted at
the 21st Conference of Parties held in Paris in
December 2015.
The Paris Agreement on climate change is
a milestone in global climate cooperation. It
is meant to enhance the implementation of
the Convention and recognises the principles
of equity and common but differentiated
responsibilities and respective capabilities in
the light of different national circumstances.
The salient features of the Paris Agreement are
as follows:
a) The Paris Agreement acknowledges the
development imperatives of developing
countries. The Agreement recognises the
Policy Initiatives/achievements
developing countries’ right to development and
their efforts to harmonise development with
environment, while protecting the interests of
the most vulnerable.
b) The Paris Agreement recognises the
importance of sustainable lifestyles and
sustainable patterns of consumption with
developed countries taking the lead, and
notes the importance of ‘climate justice’ in
its preamble.
c) The Agreement seeks to enhance the
‘implementation of the Convention’ whilst
reflecting the principles of equity and
common but differentiated responsibilities and
respective capabilities, in the light of different
national circumstances.
d) The objective of the Agreement further
ensures that it is not mitigation-centric and
includes other important elements such
as adaptation, loss and damage, finance,
technology, capacity building and transparency
of action and support.
e) Pre-2020 actions are also part of the
decisions. The developed country parties are
urged to scale up their level of financial support
with a complete road map to achieve the goal
of jointly providing US $ 100 billion by 2020
for mitigation and adaptation by significantly
increasing adaptation finance from current
levels and to further provide appropriate
technology and capacity building support.
India had advocated a strong and durable
climate agreement based on the principles
and provisions of the Convention. The Paris
Agreement addresses all the important
concerns and expectations of India.
COP21 conference on
climate change
From 30 November to 11
December 2015, governments
convened in Paris for the
21st Conference of the
Parties (COP21) to agree on
a new global climate change
agreement. 195 countries
adopted the first-ever
universal, legally binding
global climate deal. The
agreement sets out a global
action plan to put the world
on track to avoid dangerous
climate change by limiting
global warming to well below
2°C. The agreement is due to
enter into force in 2020.
May 2016 | Energy Next | 23
 Cover
Global partnership
for clean energy
The Indian government now has an unparalleled opportunity to join forces with
the private sector, international institutions, and other countries to accelerate the
global clean energy market transformation and capture vital domestic benefits.
E
ver since the Modi government
fixed an ambitious target to
quadruple its renewable power
capacity to 175 gigawatts by
2022, the floodgates to investments in the
renewable energy sector has opened. The
government has not only substantially
increased the capacity addition targets
but also backed them with clear policy
initiatives. In a global ranking of best places
for renewable companies to do business,
India is ranked fifth after China, Brazil,
Chile and South Africa -- showing a growing
competition among the developing nations
to attract green energy funds.
The Indian government now has an
unparalleled opportunity to join forces with
the private sector, international institutions,
and other countries to accelerate the global
clean energy market transformation and
24 | Energy Next | May 2016
capture vital domestic benefits.
As India looks to increase the share of
renewable sources to 40% of its energy mix
by 2030, up from 13% now, the investment
climate is improving and international
businesses are scrambling to get a slice of the
pie from India’s booming renewable energy
sector. Foreign money has been pouring into
India’s fast-growing renewable energy sector.
More and more MoUs are being signed
with key countries in an effort to strengthen
cooperation and investment and develop
new and renewable energy technologies.
The agreements focus on spurring low
carbon inclusive development by supporting
research and deployment of clean energy,
strengthening institutional and human
capacity, enhancing energy security and
accelerating the adoption of clean energy
by supporting, creating and nurturing
clean energy innovations via public-private
collaboration.
ll MOUs SIGNED
INDIA AND FRANCE
MoU on Bilateral Cooperation on New and
Renewable Energy
A Memorandum of Understanding (MoU)
between India and France was signed in Paris,
during the visit of Prime Minister Narendra
Modi to France on 10 April 2015.
The signing of the MoU will help establish
the basis for a cooperative institutional
relationship to encourage and promote
technical bilateral cooperation on the new
and renewable energy issues, on the basis
of mutual benefit, equality and reciprocity.
The MoU envisages constitution of a Joint
Working Group which can co-opt other
members from scientific institutions, research
centres, universities or any other entity, as and
when considered essential.
The MoU will also help in strengthening
bilateral cooperation between India and France.
(Source: PIB)
ll Three MoUs on Smart Cities
Cooperation towards clean and sustainable
development and India’s plans to develop
Smart Cities
Three MoUs were signed in January 2016
between the Union Territory of Chandigarh,
the State of Maharashtra, the Union Territory
of Puducherry and the French Development
Agency for extending technical assistance
for the development of the three cities
of Chandigarh, Nagpur and Puducherry
respectively, as Smart Cities in India.
(Source: MEA)
ll COOPERATION
French support for International Solar Alliance
President Francois Hollande and Prime
Minister Narendra Modi jointly launched
the new International Solar Alliance (ISA)
initiative in Paris on 30 November 2015 on
the sidelines of the COP 21. The French will
support the solar projects launched by the
member countries of ISA. To that effect, the
AFD Group will provide funding amounting
to 300 million Euros. This pledge is in line
with the financing of 2 billion Euros for
the development of renewable energies,
announced by France during COP21.
Sustainable consumption and production
patterns
Support provided by AFD (French
Development Agency) to enhance energy
efficiency in India, with the ongoing
cooperation with the public ESCO EESL
(Energy Efficiency Services Limited) for the
promotion of LED lighting, and its future
support to the construction of green housing,
especially for lower income groups.
(Source: MEA)
ll INDIA AND GERMANY
MoU on solar energy cooperation
A Memorandum of Understanding (MoU)
was signed in October 2015, between India
and Germany during Chancellor Angela
Merkel’s visit to New Delhi to expand
bilateral development cooperation in the
Policy Initiatives/achievements
field of solar energy by increasing use of
solar energy in India through technical as
well as financial cooperation.
The MoU will help in strengthening bilateral
cooperation between the two countries.
Under the agreement, Germany would
provide concessional loans in the range of one
billion euros over the next five years through
Kreditanstalt fur Wiederaufbau (KfW).
The funds of KfW will also be utilised for
providing soft loans to the end-users through
partner banks.
The MoU would lead to -
- Cooperation in the field of solar rooftops;
- The development of solar parks or solar zones
(if possible in close proximity to the Green
Energy Corridors financed by KfW under
Indo-German Financial Cooperation) and
- Solar off-grid applications to improve the
access to clean and sustainable energy.
(Source: MEA)
ll INDIA AND US
MoU on cooperation to establish PACE Setter Fund
India and the United States of America
signed a Memorandum of Understanding
(MoU) on Cooperation to Establish the
PACESetter Fund – A fund to support the
Promoting Energy Access Through Clean
Energy (PEACE) track of the U.S.-India
Partnership to Advance Clean Energy (PACE)
to accelerate the commercialization of off-
grid clean energy through early-stage grant
funding grants to develop and test innovative
products, systems, and business models
The MoU was signed by Upendra Tripathy,
Secretary, Ministry of New and Renewable
Energy from Indian side and by Richard
Verma, United States Ambassador to the
Republic of India from USA side on 30 June,
2015 at New Delhi.
India-U.S. corpus of about Rs.500 Million
($8 Million U.S. Dollars) have been drawn on
50:50 sharing basis.
(Source: PIB)
ll India and the US sign MoU
on energy security, climate
change and clean energy
US Secretary of State John Kerry and External
Affairs Minister Sushma Swaraj co-chaired
the first India-US Strategic and Commercial
Dialogue that ended with a very significant
Memorandum of Understanding on energy
security, climate change, and clean energy on
22 September 2015.
(Source: PTI)
ll INDIA-UNITED KINGDOM
MoU on cooperation in renewable energy
The Union Cabinet chaired by Prime Minister
Narendra Modi has given its ex-post facto
approval for signing of a Memorandum
of Understanding (MoU) between India
and United Kingdom of Great Britain and
Northern Ireland on cooperation in the
energy sector. The areas of cooperation
include the following:
(i) Market reforms, regulatory structures
and the role of competition in the supply
and distribution of electricity, including
regulations and incentives for Renewable
Energy deployment;
(ii) The integration of renewable energy into
the grid;
(iii) Energy efficiency policies and practice,
including industrial energy efficiency and
vehicular fuel efficiency ;
(iv) Off-shore wind energy and solar energy;
(v) Smart grids;
(vi) Energy storage and new energy
technologies;
(vii) Capacity building of renewable energy
institutions;
(viii) Off-grid renewable energy services ;
(ix) Tidal energy;
(x) Any other area of co-operation approved
in writing by the Participants.
The MoU will provide an enabling
framework for technical assistance, including
in-kind grant, and other support, as mutually
agreed, through relevant projects initiated
by the United Kingdom. Project specific
agreements may also be developed, from
time-to-time. The focus will be the electricity
market structure and the integration of
renewable energy into the grid.
(Source: PIB)
ll INDIA AND SEYCHELLES
MoU on renewable energy
A Memorandum of Understanding (MoU)
on renewable energy cooperation was signed
between India and Seychelles in March 2015,
to strengthen, promote and develop renewable
energy cooperation between the two countries
on the basis of equality and mutual benefit. The
May 2016 | Energy Next | 25
 Cover
MoU will also help in strengthening bilateral
cooperation between the two countries in the
field of renewable energy.
(Source: PIB)
ll INDIA AND INDONESIA
MoU on renewable energy
A Memorandum of Understanding was
signed between India and Indonesia in
the field of new and renewable energy
cooperation in Jakarta during Vice President
M Hamid Ansari’s visit to Indonesia.
The objective of the MoU is to establish
the basis for a cooperative institutional
framework to encourage and promote
technical bilateral cooperation on new and
renewable energy issues on the basis of
mutual benefit, equality and reciprocity.
The areas of cooperation will focus on
capacity building, exchange of scientific
and technological information and data,
transfer of technology on non-commercial
basis, development of joint research or
technical projects on subjects of mutual
interest, encouragement and promotion
of investment, encouragement of policy
dialogue and other areas as may be agreed
upon by the two countries.
(Source: PIB)
ll INDIA AND BELGIUM
MoU on renewable energy
A Memorandum of Understanding
was signed between Indian and Belgian
government authorities at the Federal and
regional level for energy.
The objective of this Memorandum of
Understanding is to establish the basis for
a cooperative institutional relationship to
encourage and promote technical bilateral
cooperation on new and renewable energy
issues on the basis of mutual benefit, equality
and reciprocity. The areas of cooperation
will focus on development of new and
renewable energy technologies in the field of
Wind energy, Biomass, Solar (thermal and
photovoltaic), Smart grids, Geothermal energy,
Marine energy, contribution of renewables to
diversification of supply and energy security,
and any other mutually agreed areas.
(Source: PIB)
ll INDIA AND MOZAMBIQUE
MoU on renewable energy
26 | Energy Next | May 2016
A Memorandum of Understanding was
signed between the Ministry of New and
Renewable Energy of the Government
of India and the Ministry of Mineral
Resources and Energy, Government of
Mozambique in New Delhi on 5th August,
2015, during the visit of Filipe Nyusi,
President of Mozambique to India.
The areas of cooperation will focus on
development of new and renewable energy
technologies in the field of conducting
on-the-job and specialized training courses
on renewable energy field, Research &
development and of technology transfer in
renewable energy, including Labs; Exchange
of experience on different kinds of renewable
energies, focusing on solar, wind, biomass,
biofuels and geothermal; Establish a bilateral
private sector renewable energy platform;
Scientific visits and any other mutually
agreed areas.
(Source: PIB)
ll SECI AND RUSSIAN ENERGY
AGENCY SIGN MOU FOR
DEVELOPMENT OF SOLAR
PROJECTS IN INDIA
The objective of India-Belgium
Memorandum of Understanding is to
establish the basis for a cooperative
institutional relationship to encourage
and promote technical bilateral
cooperation on new and renewable
energy issues on the basis of mutual
benefit, equality and reciprocity.
The Russian Energy Agency (REA) and the
Solar Energy Corporation of India (SECI) have
entered into a Memorandum of Understanding
(MoU) on 24 December 2015. The MoU was
signed by. A V Tikhonov, Director General
(REA), and Dr Ashvini Kumar, MD (SECI) in
the presence of senior-level officials.
Under the MoU, the parties have agreed to
set up large-scale photovoltaic power plants in
India during the years 2016-2022. As one of
the first stages for realisation of the projects, a
pilot project of capacity upto 500 MW would
be constructed.
(Source: SECI)
ll INTERNATIONAL COOPERATION
India and Japan
Prime Minister Narendra Modi and Prime
Minister Shinzo Abe had a summit meeting
on 12 December 2015. The two Prime
Ministers reaffirmed their commitment to
continue annual summit meetings to give
strategic directions to broad and diverse
bilateral agenda. Following the Joint
Statement, they instructed relevant authorities
to further advance cooperation in the
following areas:
Development Assistance
- Welcoming the progress achieved in the
Smart Community Projects in the Delhi-
Mumbai Industrial Corridor (DMIC) area
such as the Logistics Data Bank project, the
Mega Solar Power project in Neemrana, and
the Grid Stabilisation project in Gujarat, the
two sides instructed relevant authorities to
accelerate these smart community projects.
The two sides recognised the need of
immediately deciding to its service level and
the concrete steps towards the realisation of
the Logistics Data Bank Project.
- The two sides welcomed the progress of
the preparatory survey on the project for
setting up of a canal-top grid connect solar
photovoltaic power plant in Gujarat as a
model for next generation infrastructure.
- The two sides also shared their recognition
that further cooperation is required in order
to promote transfer of leading low-carbon
technologies by Japan’s investments to India.
- The two sides recognised the importance
of the “Clean Ganga Initiative” that Prime
Minister Modi had initiated, and shared
the view towards the rejuvenation of the
Ganga River. The two sides welcomed the
commencement of the preparatory survey
by Japan for Ganga rejuvenation, targeting
Varanasi city and neighbouring cities. The
two sides expressed hope that this potential
project will lead to the enhancement of
quality of life. The two sides also noted the
Policy Initiatives/achievements
India and Japan welcomed the
progress of the preparatory survey on
the project for setting up of a canal-
top grid connect solar photovoltaic
power plant in Gujarat as a model for
next generation infrastructure.
importance of encouraging the private sector
to participate in the initiatives in the field of
public sanitation.
Energy
The two sides recognised the importance of
renewable energy source to tackle energy
security and climate change, and welcomed
the initiation of a study on appropriate
measures to deploy energy storage
technologies in India.
- The two sides welcomed progress of
model projects organised by New Energy
and Industrial Technology Development
Organisation (NEDO) in the field of energy
efficiency and renewable energy. The two
sides welcomed the Memorandum Of
Understanding (MOU) signed in December
2015 for the model project by NEDO for
smart grid in Panipat city, Haryana.
- The two sides decided to continue to promote
well-functioning energy markets and affirmed
to promote transparent and diversified Liquefied
Natural Gas (LNG) market through the
relaxation of destination clause.
- The two sides affirmed their intention to
further strengthen energy cooperation and to
hold the 8th India-Japan Energy Dialogue in
Tokyo in 2016.
- The two sides welcomed the signing of
the Statement of Intent between National
Institution for Transforming India (NITI)
Aayog and Institute of Energy Economics,
Japan (IEEJ) which will foster mutual
understanding on cooperation in energy
sector and in analysing issues related to the
energy sector in December 2015.
(Source: MEA)
ll India- Japan Energy
Dialogue: Both Sides Discusses
Wide Range of Issues Related
to Energy Sector
Minister of State (IC) for Power, Coal and
May 2016 | Energy Next | 27
 Cover | Policy Initiatives/achievements

Your guide to Renewable Energy

A Monthly
Publication
dedicated to the
Renewable Energy
Sector

In Conversation:
New low for 3 crore energy efficient
Ramesh Kymal,
CMD, GAMESA
solar tariff pumps for farmers:
Piyush Goyal
Pg 24

VOLUME 6
Pg 42 Pg 40
` 100 $ 5 € 3
www.energynext.in

ISSUE 04
Be a part Volume 6 Issue 04 February 2016

RNI NO.: APENG/2010/38296

Hyderabad Your guide to Renewable Energy
Date of Publication: 08/02/2016 Date of Posting: 10/02/2016

of the
REvolution

ENERGy NExt
New & Renewable Energy Piyush Goyal An MOU to jointly setup Photovoltaic energy research & innovation and explore
attended the 8th India-Japan Energy Dialogue (PV) Industry Park for production of 500 possibilities for joint initiatives supporting iNdia, fraNce

Power
on 12-14 January 2016 and held the Energy MW of PV Cell and 500 MW of PV Solar the “Sustainable Energy for All” objectives,

Dialogue with his Japanese counterpart
Motoo Hayashi, Minister of Economy, Trade
and Industry wherein both sides discussed
a wide range of issues related to the energy
sector, deepening the ongoing co-operation
and also issued a Joint Statement.
(Source: PIB)
ll INDIA AUSTRALIA
India Australia Energy Security Dialogue
Held at Canberra
Union Minister of State (IC) for Coal, Power
and New and Renewable Piyush Goyal
participated in an Energy Security Dialogue
with Australian Minister for Resources,
Energy and Northern Australia, Mr Josh
Frydenberg at Canberra on 10 February. The
dialogue concluded with both co-leaders
resolving to cooperate closely to utilise the
complementary strengths of each other,
namely India’s manpower and Australia’s
technology and resources.
(Source: PIB)
ll INDIA CHINA
Business MoU/ Agreements signed at India-
China Business Forum during PM’s visit to
Shanghai.
28 | Energy Next | May 2016
Modules in India was signed between
Welspun Energy Pvt. Ltd. And Trina Solar.
MoU to set up a Solar Cell and module
manufacturing facility between Essel Infra
and JA Solar Holdings Co. Ltd.
MoU to generate 5,000 MW of solar
power in the next five years as well as
manufacturing of solar modules between
Sun Group and Canadian Solar (CSI) Solar
Power China Ltd.
(Source: MEA)
ll EU-India
Cooperation on renewable energy, energy
security and climate change
At the 13th European Union - India
Summit in Brussels, Prime Minister
Narendra Modi, President of the European
Council Donald Tusk and President of
the European Commission Jean-Claude
Juncker agreed to further develop
cooperation on renewable energy, energy
security and climate change. Under
the aegis of the EU-India Energy Panel
and its working groups, expand energy
cooperation including on renewable
energy, energy efficiency, smart grids,
clean coal technology, energy security, and
FEBRUARY 2016
solar
alliaNce
launched by the UN Secretary General.
ll NISE
National Institute of Solar Energy (NISE)
is collaborating with premium institutions/
laboratories of USA, Japan and Germany in
the fields of performance evaluation, long term
operational reliability and indoor-performance
testing of different technology modules.
(Source: PIB)
ll NIWE
National Institute of Wind Energy (NIWE)
in collaboration with specialized institutions
of Denmark; USA, Spain and Germany is
working in the areas of wind forecasting,
offshore wind, aero-structural design, training
on testing inter-laboratory comparisons etc.
(Source: PIB)
Policy Initiatives | Industry Issues | Investment
ll IREDA Technology & Trends | Company Profiles
Indian Renewable Energy Development
Agency (IREDA) is also operating Line of State Focus | Global Perspective | Market Watch
Credits from various Bilateral/ Multilateral
institutions for further extending the credit
to viable renewable energy projects in the
country. Advertise today!
(Source: PIB)
Focal Point Media Services Pvt Ltd | 409, Mansarovar Building, 90,
Nehru Place, New Delhi 110019 | www.energynext.in | info@energynext.in
 Cover
UPSCALING OF RE TARGETS
With the renewable energy target of 175 GW by the year 2022, India will
become one of the largest green energy producers in the world, surpassing
several developed countries.
T
he Government up-scaled the
target of renewable energy
capacity to 175 GW by the year
2022 which includes 100 GW
from solar, 60 GW from wind, 10 GW
from bio-power and 5 GW from small
hydro-power. Stepping up capacity target
under the Jawaharlal Nehru National
Solar Mission (JNNSM) by five times
now India is aiming to generate reaching
1,00,000 MW solar power by 2022. The
target will principally comprise of 40
GW Rooftop and 60 GW through Large
and Medium Scale Grid Connected Solar
Power Projects. With this ambitious target,
India will become one of the largest Green
Energy producers in the world, surpassing
several developed countries. The total
investment in setting up 100 GW will be
around Rs. 6,00,000 crore.
ll GREEN POWER CAPACITY
INCREASED
A total of 2,311.88 MW of grid-
connected power generation capacity
from renewable energy sources like solar
and wind has been added so far this fiscal
in the country. The government has set a
target of 4,460 MW of power generation
capacity addition this fiscal from
renewable energy sources, including solar,
wind and small-hydro. During the first
seven months of the fiscal, 827.22 MW
of solar power generation capacity was
added, taking the cumulative electricity
generation capacity from the source to
4,579.24 MW. The Centre is aiming to
add 1,400 MW solar power generation
capacity during this fiscal. Similarly,
1,234.11 MW wind power generation
capacity was added during the period,
taking cumulative electricity generation
capacity from this renewable source to
24,677.72 MW. The government has set
a target of adding 2,400 MW of wind
30 | Energy Next | May 2016
Policy Initiatives/achievements
‘Budget to have
positive impact on RE’
The overall renewable energy industry stands to gain from several
power generation capacity in 2015-16.
Under the small-hydro category, 106.55
capacity to 4550.55 MW in this segment.
The government has set a target of adding
announcements in the Budget. With these announcements, the government
MW generation capacity was added till 400 MW capacity from these sources. In has lent an aggressive support to its green energy agenda and initiatives.
T
October, taking the total generation waste-to-power segment, 12 MW capacity
capacity in this segment to 4161.90 has been created till October compared to he Clean Environment Cess at technologies in the renewable energy sector. will lead to reduction in the capital cost of
MW. The Centre has set a target of a target of 10 MW for the entire 2015- Rs 400 per tonne will be used Goyal said that solar pumps for irrigation the wind power equipments, which in turn
adding 250 MW of small-hydro power 16. Now, India has 127.08 MW of power for development of renewable and the pumps based on biomass likely to will reduce the cost of generation of power
generation capacity this fiscal. In the generation capacity under this category. energy resources and various get the fillip in 28.5 lakh hectares which is from wind power projects. Excise duty on
bio-power (biomass & gasification and The country’s total grid-connected environmental protection measures, said to be brought under irrigation. He further carbon pultrusions used for manufacture of
biogases cogeneration) segment, 132 power generation capacity from all the Piyush Goyal, Minister of State for Power, stated that solar lamp has been exempted rotor blades, and intermediates, parts and
MW of generation capacity was added till above mentioned renewable sources was Coal and New & Renewable Energy, in a from excise duty from 25% to NIL and basic sub-parts of rotor blades for wind operated
October end this fiscal, taking the total 3,8096.49 MW at the end of October. media briefing in New Delhi. custom duty on industrial solar water heaters electricity generators reduced from 12.50%
He informed that Plan Outlay to support increased from 7.5% to 10%. to 6%.
renewable energy has been increased from He also urged people to monitor work • Cheaper funds to boost investment in
The physical progress of achieving these targets Rs 2,509 crore in 2014-15 to Rs 4,246 crore of his ministries and to bring forth any renewables
in 2015-16; and further to Rs 5,000 crore deficiencies in working of the system. The Mobilisation of additional finances to the
Scheme wise Physical Progress in 2015-16 in 2016-17 Budget. The Minister told that minister added that the feedback from people extent of Rs 31,300 crore by NHAI, PFC,
(During the month of October 2015)
Budget 2016 has provisions to mobilize will help the Government to work efficiently. REC, IREDA, NABARD and Inland Water
FY 2015-16 Cumulative
funds at cheaper rate to ensure availability of Authority by raising Bonds. o Dedicated
Sector Achievements
Target Achievement (as on 31.10.2015) cheaper power to the ultimate consumers. ll Highlights of Budget fund to provide credit enhancement to
Grid Interactive Power (Capacities in MW) Goyal reiterated that out of all un- 2016-17 infrastructure projects by LIC. Renewable
electrified villages, about 3000 will be • Plan Outlay to support Renewable Energy energy projects may likely to get the share in
Target 2400.00 1234.11 24677.72
electrified through renewable energy sources has been increased from Rs. 2,509 Crore in the proposed dedicated fund.
Achievement 1400.00 827.22 4579.24
under the Deendayal Upadhyaya Gram Jyoti 2014-15 to Rs. 4,246 Crore in 2015-16; and • Electrification of Villages: As on 1 April,
Small Hydro Power 250.00 106.55 4161.90 further to Rs. 5,000 Crore in 2016-17 budget.
Yojana (DDUGJY) scheme. 2015, a total of 18,542 villages were not
Bio Power 400.00 132.00 4550.55 The Budget also proposes 100% tax This will help in implementation/ expansion electrified. The Prime Minister, in his address
Waste to Power 10.00 12.00 127.08 deduction of projects for 3 out of 5 of renewable energy programmes to reach to the nation on 15 August 2015, announced
Total 4460.00 2311.88 38096.49 years to start-ups. It will encourage the the target of 175 GW by 2022. that the remaining villages will be electrified
Off Grid Captive Power (Capacities in MWEQ ) entrepreneurs to launch startups in the RE • Clean Environment Cess will enhance the within the next 1000 days.
Waste to Energy 10.00 0.50 146.51 sector. A special patent regime with 10% funds available for promoting renewable • Pradhan Mantri Krishi Sinchai Yojana:
Biomass Cogeneration 60.00 10.50 602.37 rate of tax on income from exploitation of energy projects and the infrastructure 28.5 lakh hectares will be brought under
Biomass Gasifies patents is mentioned in the Budget to give associated with it. irrigation. Solar pumps for irrigation and
2.00 0.20 18.51
Rural fillip to entrepreneurs to adoption of new • Inverted Duty Corrected This correction the pumps based on biomass likely to get the
Industrial 6.00 8.67 160.72 fillip due to this announcement.
Aero-Generators/Hybrid • Make in India: Basic custom duty on
0.50 46.50 280.85 industrial solar water heaters increased
System
Water Mills/Micro hydel 2.00 0.00 7.21 from 7.5% to 10%. Imports likely to become
Total 130.50 66.50 1228.48 costlier and will provide boost to domestic
manufacturers.
Other Renewable Energy System
• Promote entrepreneurs among SC/ST
Family Biogas Plants
1.10 0.15 48.28 and women – 2.5 lakh entrepreneurs to be
(Numbers in lakhs)
created. Decentralised renewables are likely
Solar Water Heating-
- 0.00 8.90 to get a boost as new entrepreneurs likely to
Coll. Areas
enter the sector.
(Source: PIB) (Source: PIB)
May 2016 | Energy Next | 31
 Cover Policy Initiatives/achievements

Lowest Solar Tariffs, Solar bids drop

to record low
Rooftop Solar Subsidy

T
he lowering bid rates prove that solar
energy is becoming cheaper in the
country, and will accelerate solar
adoption.
Solar tariffs hit a historic low of Rs 4.34
per kWh in January 2016 following the bid
for a 70 MW project in Rajasthan by Finnish
solar power company Fortum Energy. NTPC
conducted the reverse bidding for a capacity of
The Cabinet Committee on Economic Affairs
has approved the scaling up of budget from Rs
600 crore to Rs 5,000 crore for implementation
of Grid Connected Rooftops systems over a
period of five years upto 2019-20 under the
National Solar Mission (NSM). This will support
installation of 4200 MW solar rooftop systems Andhra Pradesh
Year: October 2014
in the country in next five years. Bid Volume: (In MW): 40 MW
The capital subsidy of 30% will be provided Lowest Bid (Per kWh): Rs 5.25

Funds for R&D of New and

for general category States/UTs and 70% for Firm: First Solar
420 MW in six solar power plants of 70 MW
each to be set up at the Bhadla Solar Park-II near special category States i.e., North-Eastern States

Renewable Energy Technology

Jodhpur in Rajasthan. including Sikkim, Uttarakhand, Himachal
Earlier in November, US-based SunEdison Pradesh, Jammu & Kashmir and Lakshadweep,
had won projects of 500 MW capacity in Andaman & Nicobar Islands,
Andhra Pradesh at the rate of Rs 4.63 per kWh. There will be no subsidy for commercial
In June, a subsidiary of SkyPower won rights and industrial establishments In the private Against the budget of Rs 513.28 crore allocated by the Ministry of New and Renewable
to develop 150 MW of solar power photovoltaic sector since they are eligible for other benefits Energy for research and development (R&D) of new and renewable energy technology, a total
capacity in Madhya Pradesh. Mauritius-based such as accelerated depreciation, custom duty
SkyPower Southeast Asia Holdings secured concessions, excise duty exemptions and tax
expenditure of Rs 435.95 crore was incurred during the last three years and the current year.
Madhya Pradesh
rights to develop three projects of 50 MW holiday etc, This capacity of 4200 MWp will Year: June 2015
capacity each at tariffs ranging from Rs 5.051/ come up through the residential, Government, Bid Volume: (In MW): 150 MW Year wise and subject-wise budget allocated and expenditure incurred
social and institutional sector (hospitals, Lowest Bid (Per kWh): Rs 5.05
kWh to Rs 5.298/kWh. The previous lowest bids
Firm: SkyPower Southeast Asia Year-wise expenditure (release) in Rs. (crores)
in India were placed by US-based major First educational institutions etc.). industrial & Holdings
Solar in Andhra Pradesh in October 2014. First commercial sector will be encouraged for Sl Subject 2015-16
2012-13 2013-14 2014-15
Solar submitted bids of Rs 5.25/kWh for 40MW. installations without subsidy. (up to Feb2016)
No Area
This will create the market, build the Funds Funds Funds Funds
Expenditure Expenditure Expenditure Expenditure
Cabinet approves Rs 5000 confidence of the consumers and will enable Allocated Allocated Allocated Allocated
crore for promotion of solar the balance capacity through market mode to 1. Solar 47.50 47.50 54.80 54.80 44.80 44.80 33.90 33.25
rooftops in the country achieve the target of 40,000 MWp by 2022. Biogas
R&D/
2. 2.00 1.42 3.00 3.20 10.00 8.02 1.00 0.86
Biogas
Solar Tariff (per KwH) Bottling
`5.25 Andhra Pradesh
Year: November 2015
3. Biofuel 3.0 0.398 6.50 6.38 8.00 1.104 5.00 1.00
Andhra
Pradesh Bid Volume (In MW): 500 MW Hydrogen
Lowest Bid (Per kWh): Rs 4.63
`5.05 Firm: Sun Edison
4. and Fuel
Cells
20.00 12.35 2.00 15.85 19.00 10.80 5.90 2.80
Madhya
Pradesh `4.63 Wind-
Andhra 5. 2.0 2.0 6.00 6.0 2.00 2.0 2.94 2.94
Hybrid
Oct Pradesh
`4.34
2014 Rajasthan 6. SHP 8.00 8.0 8.50 8.22 1.00 1.00 0.50 0.50
Institutions
7. 16.00 16.17 27.000 27.14 40.00 49.36 20.00
(a) NISE
6.23
(b) NIWE 20.00 16.58 14.00 19.52 12.64 10.96 5.00

Jan (c) NIBE 15.00 3.91 20.25 6.50 10.55 4.39 15.50
Rajasthan
2016 Year: January 2016 Total 133.5 108.328 142.05 147.61 147.99 132.434 89.74 47.58
Bid Volume (In kWh): 70 MW (Source: MNRE)
Lowest Bid (Per Unit): Rs 4.34 The Ministry released Central Financial Assistance including subsidy totalling Rs.8293.31 crore during the last
Oct 2014 June 2015 Nov 2015 Jan 2016 Firm: Fortum Energy three years and the current year for promoting new and renewable energy.

32 | Energy Next | May 2016 May 2016 | Energy Next | 33

 Cover
New policies and
schemes lead
RE to realise its
potential
First time ever India exceeded renewable capacity addition targets in solar and
wind. These policies and schemes are taking the renewable energy sector forward.
ll National Offshore Wind
Energy Policy, 2015
Under the Policy, the Ministry of New &
Renewable Energy (MNRE) has been
authorised as the Nodal Ministry for use
of offshore areas within the Exclusive
Economic Zone (EEZ) of the country
and the National Institute of Wind
Energy (NIWE) has been authorised
as the Nodal Agency for development
of offshore wind energy in the country
and to carry out allocation of offshore
wind energy blocks, coordination and
allied functions with related ministries
and agencies. It would pave the way
34 | Energy Next | May 2016
for offshore wind energy development
including, setting up of offshore wind
power projects and research and
development activities, in waters, in
or adjacent to the country, up to the
seaward distance of 200 Nautical Miles
(EEZ of the country) from the base line.
Preliminary assessments along the 7600
km long Indian coastline have indicated
prospects of development of offshore
wind power. With the introduction of
the National Offshore Wind Energy
Policy, the Government is attempting
to replicate the success of the onshore
wind power development in the offshore
at 100 meter above ground level and
solar radiation map at ground level on
online Geographic Information System
(GIS) platform has been launched. This
online Wind Atlas is available online in
the NIWE website www.niwe.res.in the
Wind and Solar Resource Maps will not
only help and guide the wind and solar
power developers and other stakeholders
in identifying potential areas for the
development of wind & solar power
projects in the country but also help the
central and state agencies in planning
and developing the infrastructure
including transmission system, required
for installing renewable power projects in
these potential areas.
Inclusion of Renewable
Energy Projects in Priority
Sector Lending Norms of
Commercial Banks
The Reserve Bank of India has revised
the priority sector lending norms,
and has accorded priority sector
lending status for renewable energy.
As per RBI’s notification, banks can
now provide loans up to a limit of
Rs 15 crore to borrowers for solar,
biomass, wind, and micro-hydel power
generation, and also for renewable
energy based public utilities like
street lighting systems and remote
village electrification. For individual
households, the loan limit has been set
to Rs 10 lakh per borrower.
wind power development. The policy
will provide a level playing field to all
investors/beneficiaries, domestic and
international.
The development would help the
country in moving forward towards
attaining energy security and achievement
of the NAPCC targets.
The scheme would be applicable
throughout the country depending upon
offshore wind potential availability.
ll Indian Wind Resources
Atlas 2015 Launched
Wind Energy Resources Map of India
Policy Initiatives/achievements
With the National Offshore Wind Energy
Policy, the Government is attempting
to replicate the success of the onshore
wind power development in the
offshore wind power development
ll Enforcement of Renewable
Purchase Obligations
Enforcement of Renewable Purchase
Obligations has been strengthened by
Supreme Court judgement for captive
power generators and Appellate Tribunal
Judgement on fulfilment of RPO obligation
by State regulators.
ll Net-metering schemes has
been rolled out in majority of States which
will help in meeting 40 GW rooftop grid
connected solar projects.
ll State Electricity
Regulatory Commissions
(SERCs) of twenty States have notified
regulatory framework on net-metering
and feed-in-tariff to encourage rooftop
solar plants.
ll Land procurement
Many states have provided deemed Non
Agricultural status for land purchased for
RE projects.
ll INTRA STATE TRANSMISSION
SYSTEM
The Cabinet Committee on Economic
Affairs (CCEA) approved the creation
of an intra state transmission system in
the States of Andhra Pradesh, Gujarat,
Himachal Pradesh, Karnataka, Madhya
Pradesh, Maharashtra and Rajasthan at an
estimated cost of Rs 8548.68 crore with
Government of India contribution from
the National Clean Energy Fund (NCEF)
of Rs 3419.47 crore (40 percent of the total
estimated cost of project).
The activities envisaged under the project
includes establishment of 48 new Grid
sub-stations of different voltage levels with
total transformation capacity around 17100
MVA (Mega Volt Ampere) by installing
over 7800 ckt-kms (Circuit Kilometers) of
transmission lines in these seven states. The
project is proposed to be completed within
a period of three to five years.
The cost on creating intra-state transmission
system is proposed to be met through KfW
loan (40 percent of the total cost), NCEF grant
(40 percent of the total cost) and the remaining
20 percent as State contribution.
These States are rich in renewable
resource potential and large capacity
renewable power projects are planned
there. Creation of an intra state
transmission system will facilitate
evacuation of renewable power from
generation stations to load centres.
ll SOLAR PROJECTS UNDER
NATIONAL SOLAR MISSION
The Union Cabinet approved the
implementation of the scheme for setting
up of 15,000 MW of Grid-connected Solar
PV Power projects under the National
Solar Mission through NTPC/ NTPC
Vidyut Vyapar Nigam Limited (NVVN)
in three tranches namely, 3000 MW under
Tranche-l under mechanism of Bundling
with Unallocated Coal based Thermal
Power and fixed levellised tariffs, 5,000 MW
under Tranche-ll with some support from
May 2016 | Energy Next | 35
 Cover
Government to be decided after getting some
experience while implementing Tranche-l
and balance 7,000 MW under Tranche-Ill
without any financial support from the
Government. Successful completion of
additional 15,000 MW capacity of Grid-
connected solar PV power generation
projects, mainly in the private sector,
with largely private investment, under the
National Solar Mission would accelerate
the process of achieving grid tariff parity
for solar power and also help reduce
consumption of kerosene and diesel, which is
presently in use to meet the unmet demand.
ll SOLAR CITIES
The Ministry of New and Renewable Energy
has approved 56 solar cities projects against
the target of 60 solar cities under the
Development of Solar Cities Programme.
The development of solar cities
programme is designed to support/
encourage urban local bodies to prepare a
road map to guide their cities in becoming
renewable energy cities or solar cities.
The Ministry has already initiated
various programmes in the urban sector
for promoting solar water heating systems
in homes, hotels, hostels, hospitals and
industry; deployment of SPV systems/
devices in urban areas for demonstration and
awareness creation; establishment of ‘Akshya
Urja Shops’; design of Solar Buildings and
promoting urban and industrial waste/
biomass to energy projects. The solar city
36 | Energy Next | May 2016
programme aims to consolidate all the
efforts of the Ministry in the urban sector
and address the energy problem of the urban
areas in a holistic manner.
Objectives of the Solar City programme
The Solar City programme aims
l To enable and empower Urban Local
Governments to address energy challenges
at City - level.
l To provide a framework and support
to prepare a Master Plan including
assessment of current energy situation,
future demand and action plans.
l To build capacity in the Urban Local
Bodies and create awareness among all
sections of civil society.
l To involve various stakeholders in the
planning process.
l To oversee the implementation of
sustainable energy options through public
- private partnerships.
ll SOLAR PUMPS
The government has implemented a scheme to
install one lakh solar pumps for irrigation and
The development of solar cities
programme is designed to support urban
local bodies to prepare a road map to
guide their cities in becoming renewable
energy cities or solar cities
drinking water through State Nodal Agencies
and NABARD. These pumps helped lakhs of
farmers to increase output, income and also
provide drinking water. According to estimates,
drinking water problems will be solved for more
than 7.6 lakh families through solar pumps for
drinking water. MNRE provides 30% capital
subsidy to farmers for installation of solar
pumps for irrigation purpose through state
nodal agencies. The state governments can give
additional subsidy. The government presented
40% subsidy with mandatory loan to farmers
for irrigation purpose through NABARD. The
ministry has issued supplementary guidelines
for 1,00,000 solar pumps during 2014-15 and Rs
353.50 crore was released to various agencies.
ll UNNAT CHULHA ABHIYAAN
The Unnat Chulha Abhiyan envisages
developing and promoting deployment of
efficient and cost effective improved biomass
cook-stoves in the country. The programme
involves demonstration of the various
models of biomass cook-stoves both natural
and forced draft types for domestic and large
scale community cooking on cost sharing
basis. The programme aims at providing
improved cook stoves for clean cooking
thus saving lives of thousands of people in
the country. 3.5 lakh cook stoves have been
sanctioned under the scheme last year.
ll OTHER SCHEMES LAUNCHED
FOR ACHIEVING SOLAR ENERGY
TARGETS
Off-grid Rooftop
It is proposed to set up 40 GW solar
rooftop programmes where grid
connectivity already exist. 15%
Government subsidy for non-commercial
and non-industrial categories for using
domestic solar panels would be provided.
Grid-Connected Solar PV Power Projects
Setting up of over 300 MW of Grid-
Connected Solar PV Power Projects
by Defence establishments and Para
Military Forces with viability gap funding:
More than 150 MW projects have been
sanctioned under the scheme.
Implementation of Scheme for setting
up 1000 MW of Grid Connected Solar
PV Power projects by CPSUs and
GOI organization’s with Viability Gap
Funding in three years period from
2015-16 to 2017-18. About 100 MW have
been allocated to various CPSUs under
the scheme.
Policy Initiatives/achievements
Scheme for Development of Grid
Connected Solar PV Power Plants on
Canal Banks and Canal Tops:
MNRE launched a scheme for Development
of Grid Connected Solar PV Power Plants on
Canal Banks and Canal Tops in the country
during the 12th Plan period at an estimated
cost of Rs 975 crore and with Central
Financial Assistance (CFA) of Rs 228 crore.
The Solar PV Power Plants on Canal Banks
and Canal Tops with 50 MW capacities
under each category have been approved
for eight States (Gujarat, Andhra Pradesh,
Karnataka, Kerala, Uttar Pradesh, Punjab,
Uttarakhand and West Bengal).
Scheme for Decentralized Generation of
Solar Energy Projects by Unemployed
Youths & Farmers
It is expected that about 10 GW solar
projects would be setup. Innovative
Financing of such projects could be
possible as equity is being put up by the
state, local bodies and entrepreneurs.
Surya Mitra Scheme
The Surya Mitra Scheme was launched for
creating 50,000 trained personnel within a
period of 5 years (2015-16 to 2019-20). The
course content has been approved by the
National Council of Vocational Training
as per the National Skill, Qualification
Framework. As on 30.9.2015, a total of 27
programmes involving Rs 17 crore have been
sanctioned to SNAs by National Institute for
Solar Energy. In 2015-16, 70 programmes will
be conducted against which 27 programmes
have started. As on 30.9.2015, about 360
Surya Mitras were trained under the scheme.
Domestic Efficient Lighting Programme
The Domestic Efficient Lighting Programme
launched in 2015 by Prime Minister
Narendra Modi has already provided over
10 crore LED bulbs to families through
power distribution companies at an
installment of Rs 10 per month for each
bulb. The distribution companies charge the
EMI through their electricity bills.
Through the bulk tendering, the
government has been able to reduce the
procurement price of these LED bulbs from
Rs 64.41 in January 2016 from the market
rate of Rs 310 in February 2014. The target
of the DELP is to replace all the 77 crore
incandescent bulbs sold in India with LED
bulbs. This will result in reduction of 20,000
MW load, energy savings of 105 billion KWh
and Green House Gas (GHG) emissions
savings of 80 million tonnes every year. The
annual saving in electricity bills of consumers
will be Rs 40,000 crore, considering an
average tariff of Rs 4 per kWh.
(Source: PIB / MNRE / DELP)
May 2016 | Energy Next | 37
 Cover Policy Initiatives/achievements

33 Solar parks to be
setup across india
With the world taking notice of the burgeoning carbon emission problems that
come with burning fossil fuels, solar energy is becoming increasingly popular. 2015
has been a significant year for solar with a dramatic drop in solar tariffs.
A
big part of the solar story is
the steady growth of ground-
mounted solar power, or solar
parks. Out of the government
target of 100 GW of solar by 2022, 20 GW is
for solar parks. Beginning with the Charanka
Solar Park in Gujarat, and closely followed
by the Bhadla Solar Park in Rajasthan, solar
parks have quickly emerged as a powerful
mechanism for the rapid development of solar
power projects in the country.
ll MNRE Scheme for Solar
parks
In a recent development, the total number of
approved solar parks has risen to 33 in 21 states
with an aggregate capacity of 19,900 MW. “As
against 25 solar parks planned, the ministry (of
new and renewable energy) has approved 33
solar parks in 21 states with aggregate capacity
of 19,900 MW,” said Solar Energy Corporation
of India (SECI) managing director Ashvini
Kumar in a statement.
The SECI is the implementing agency and
has already released Rs.54.93 crore, out of
each with a capacity of 500 MW and above
targeting over 20 GW solar power, across
the country in next five years at an outlay
of Rs 4050 crore. However, in December
last year the government approved 27 solar
parks, bringing the aggregate capacity to
18,418MW across 21 states and union
territories. In a written letter replying to a
question in the Rajya Sabha, Power Minister
Piyush Goyal said the total cost for the
scheme remains at Rs 4050 crore.
ll Concept of Solar Parks
Solar parks are common development
zones of solar power projects and offer
developers land that is well characterized,
with proper infrastructure and access to
amenities and where the risk of the projects
can be minimized. State governments
or EPC developers acquire the land, put
up transmission lines, get the required
government permissions and approvals, and
offer the facility to companies who can put
up their solar projects on the land and offer
the operators a fee. In this way, the solar
Uday scheme:
A positive
comes from the Jawaharlal Nehru National
Solar Mission (JNNSM), which provided
the policy framework and roadmap for solar
power development in the country.
bailout
ll Large-scale Solar Parks
Large size projects have a potential to bring
down the cost of solar power. Therefore, Ultra
Mega Solar Power Projects having capacity of
500 MW or above have been planned in India.
Large chunks of land are available in some
states for solar park development. There are
some developers who are keen to individually
take up very large projects.
Smaller parks could also be considered
under the scheme in Himalayan states
where large tracts of contiguous land may be
difficult to acquire and in states where there
is acute shortage of non-agricultural lands.
The solar parks would be developed in
collaboration with state governments. Lands
have been identified in Gujarat, Madhya
Pradesh, Telangana, Andhra Pradesh, UDAY assures the rise of vibrant and efficient DISCOMs through a permanent
Karnataka, Uttar Pradesh, Meghalaya, J&K
(Leh and Kargil), Punjab and Rajasthan. resolution of past as well as potential future issues of the sector.

the Rs 374crore sanctioned.
The Ministry of New and Renewable
Energy (MNRE) had earlier announced a
scheme to develop at least 25 solar parks,
parks reduce project development to simply
winning a bid for capacity and setting up the
solar modules and inverters.
The initial impetus for the solar parks
ll Maximising environmental
benefits, creating jobs
At the State level, the solar parks will
enable the States to bring in significant
investment from project developers, meet
its Solar Renewable Purchase Obligation
(RPO) mandate and provide both direct and
indirect employment opportunities to local
population. Solar parks create both direct
and indirect employment opportunities.
The huge solar parks are expected to weave
a more consolidated job market, as well as
drive collaboration between government
agencies and local companies
Source: MNRE / SECI
T
he Union Cabinet approved a
new scheme, Ujwal DISCOM
Assurance Yojna or UDAY
to ease the financial crunch
facing power distribution companies, or
DISCOMs on 5 November 2015. UDAY
provides for the financial turnaround and
revival of DISCOMs, and importantly also
ensures a sustainable permanent solution
to the problem.
DISCOMs are trapped in a vicious cycle
with operational losses being funded by
debt. Outstanding debt of DISCOMs has
increased from about Rs 2.4 lakh crore
in 2011-12 to about Rs. 4.3 lakh crore in
2014-15, with interest rates upto14-15%.
UDAY assures the rise of vibrant and
efficient DISCOMs through a permanent
resolution of past as well as potential
future issues of the sector. It empowers
DISCOMs with the opportunity to break
even in the next 2-3 years. This is through
four initiatives (i) Improving operational
efficiencies of DISCOMs; (ii) Reduction of
cost of power; (iii) Reduction in interest
cost of DISCOMs; (iv) Enforcing financial
discipline on DISCOMs through alignment
with State finances.
Adopting UDAY is optional for States,
but provides the fastest, most efficient
and financially most feasible way for
providing 24X7 Power for All. It will
be operationalized through a tri-partite
agreement amongst the Ministry of Power,
the State Government and the DISCOM.
ll Salient Features of UDAY
• States shall take over 75% of DISCOM
debt as on 30 September 2015 over two
years - 50% of DISCOM debt shall be
taken over in 2015-16 and 25% in 2016-17.
• Government of India will not include
the debt taken over by the States as per the
above scheme in the calculation of fiscal
deficit of respective States in the financial

38 | Energy Next | May 2016 May 2016 | Energy Next | 39

 Cover
years 2015-16 and 2016-17.
• States will issue non-SLR including SDL
bonds in the market or directly to the
respective banks / Financial Institutions
(FIs) holding the DISCOM debt to the
appropriate extent.
• DISCOM debt not taken over by the
State shall be converted by the Banks / FIs
into loans or bonds with interest rate not
more than the bank’s base rate plus 0.1%.
Alternately, this debt may be fully or partly
issued by the DISCOM as State guaranteed
DISCOM bonds at the prevailing market
rates which shall be equal to or less than
bank base rate plus 0.1%.
• States shall take over the future losses of
DISCOMs in a graded manner .
• State DISCOMs will comply with the
Renewable Purchase Obligation (RPO)
outstanding since 1 April, 2012, within a
period to be decided in consultation with
Ministry of Power.
• States accepting UDAY and performing
as per operational milestones will be
given additional / priority funding
through Deendayal Upadhyaya Gram
Jyoti Yojana (DDUGJY),Integrated Power
Development Scheme (IPDS), Power
Sector Development Fund (PSDF) or other
such schemes of Ministry of Power and
Ministry of New and Renewable Energy.
• Such states shall also be supported with
additional coal at notified prices and, in
case of availability through higher capacity
utilisation, low cost power from NTPC and
other Central Public Sector Undertakings
(CPSUs).
• States not meeting operational
40 | Energy Next | May 2016
DISCOMs are trapped in a vicious cycle
with operational losses being funded by
debt. Outstanding debt of DISCOMs has
increased from about Rs 2.4 lakh crore
in 2011-12 to about Rs. 4.3 lakh crore in
2014-15, with interest rates upto14-15%.
milestones will be liable to forfeit their
claim on IPDS and DDUGJY grants.
• UDAY is optional for all States. However,
States are encouraged to take the benefit
at the earliest as benefits are dependent on
the performance.
ll MOU Signed by States
under UDAY
Jharkhand
The Government of India, the State of
Jharkhand and the JBVNL (Jharkhand
Bijli Vitran Nigam Limited) signed
Memorandum of Understanding (MOU)
under the UDAY Scheme on 5 January
2016 for operational and financial
turnaround of DISCOMs. Jharkhand
would derive an overall net benefit of
approximately Rs 5,300 crores through
UDAY, by way of savings in interest cost,
reduction in AT&C and transmission
losses, interventions in energy efficiency,
etc, during the period of turnaround.
Chhattisgarh
The Government of India, the State
of Chhattisgarh and the CSPDCL
(Chhattisgarh State Power Distribution
Company Limited) signed Memorandum
of Understanding (MOU) under the
UDAY Scheme on 25 January 2016 for
operational and financial turnaround of
the CSPDCL. Chhattisgarh would derive
an overall net benefit of approximately
Rs 3,100 crore through UDAY, by way of
savings in interest cost, reduction in AT&C
and transmission losses, interventions in
energy efficiency, etc, during the period of
turnaround.
Rajasthan
The Government of India, the State of
Rajasthan and the DISCOMs of Rajasthan
(Jaipur Vidyut Vitran Nigam Limited,
Jodhpur Vidyut Vitran Nigam Limited
and Ajmer Vidyut Vitran Nigam Limited)
signed Memorandum of Understanding
(MOU) under the UDAY Scheme on 27
January 2016 for operational and financial
turnaround of the DISCOMs. Rajasthan
would derive an overall net benefit of
approximately Rs 21,000 crore through
UDAY, by way of savings in interest cost,
reduction in AT&C and transmission
losses, interventions in energy efficiency,
coal reforms etc, during the period of
turnaround.
Uttar Pradesh
The Government of India, the State of
Uttar Pradesh and Uttar Pradesh Power
Corporation Limited(UPPCL), on behalf of
DISCOMs of Uttar Pradesh (Dakshinanchal
Vidyut Vitran Nigam Limited, Kanpur
Electric Supply Company Limited,
Madhyanchal Vidyut Vitrran Nigam Limited,
Paschimanchal Vidyut Vitran Nigam
Limited and Purvanchal Vidyut Vitran
Nigam Limited) signed Memorandum of
Understanding (MOU) under the Scheme
UDAY on 30 January 2016 for operational
and financial turnaround of
the DISCOMs. Uttar Pradesh would derive
an overall net benefit of approximately Rs
33,000 crore through UDAY, by way of
savings in interest cost, reduction in AT&C
and transmission losses, interventions in
energy efficiency, coal reforms, etc., during
the period of turnaround.
Bihar
The Government of India, the State of Bihar
and the DISCOMs of Bihar (North Bihar
Power Distribution Company Limited,
and South Bihar Power Distribution
Company Limited) signed Memorandum
of Understanding (MOU) under the UDAY
Scheme on 22 February 2016 for operational
and financial turnaround of the DISCOMs.
An overall net benefit of approximately Rs
9000 crore would accrue to the state by opting
to participate in UDAY, by way of savings
in interest cost, reduction in AT&C and
transmission losses, interventions in energy
efficiency, coal reforms etc. during the period
of turnaround.
Punjab
The Government of India, the State
of Punjab and the Punjab State Power
Corporation Limited (PSPCL), which
An overall net benefit of Rs 14,160 crore
would accrue to the State by opting to
UDAY, during the period of turnaround.
Policy Initiatives/achievements
takes care of the power distribution
activity of Punjab, signed Memorandum of
Understanding (MOU) under the UDAY
Scheme on 4 March 2016 for operational
and financial turnaround of the DISCOMs.
An overall net benefit of approximately Rs
5,475 crore would accrue to the State by
opting to participate in UDAY, by way of
savings in interest cost, reduction in AT&C
and transmission losses, interventions in
energy efficiency, coal reforms etc. during
the period of turnaround.
Haryana
The Government of India, the State of
Haryana and the DISCOMs of Haryana
(Uttar Haryana Bijli Vitran Nigam Ltd. and
Dakshin Haryana Bijli Vitran Nigam Ltd.)
signed Memorandum of Understanding
(MOU) under the UDAY Scheme on 11
March 2016 for operational and financial
turnaround of the DISCOMs.
An overall net benefit of approximately
Rs 14,160 crore would accrue to the State
by opting to participate in UDAY, by way of
savings in interest cost, reduction in AT&C
and transmission losses, interventions in
energy efficiency, coal reforms etc. during
the period of turnaround.
Jammu and Kashmir
The Government of India and the State of
Jammu & Kashmir signed Memorandum
of Understanding (MOU) under the UDAY
Scheme on 15 March 2016 for operational
and financial turnaround of the State’s Power
Distribution Department. An overall net
benefit of approximately Rs 9,800 crore would
accrue to the State by opting to participate
in UDAY, by way of savings in interest cost,
reduction in AT&C and transmission losses,
interventions in energy efficiency, coal
reforms etc. during the period of turnaround.
Uttarakhand
The Government of India, the State of
Uttarakhand and the Uttarakhand Power
Corporation Limited (UPCL), which takes
care of the power distribution activity of
Uttarakhand, signed Memorandum of
Understanding (MOU) under the Scheme
UDAY on 31 March 2016 for operational
turnaround of the DISCOMs. An overall net
benefit of approximately Rs 962 crore would
accrue to the State by opting to participate in
UDAY, reduction in AT&C and transmission
losses, interventions in energy efficiency, etc.
during the period of turnaround.
Gujarat
Gujarat has also signed the MoU for
operational turnaround, considering the
healthy financial position of the DISCOMs
of the State.
Source: PIB
May 2016 | Energy Next | 41
 Cover | Policy Initiatives/achievements Inconversation

Policy amendments underway ‘Renewable energy sector

India is the most exciting power market in the world and crucial policies
will make the renewable energy sector even more attractive for investors
ll National Wind Energy
Mission
The Government has initiated the process
of establishing National Wind Energy
Mission. The setting up of a Mission
would help in (a) achieving the targets
of 12th Plan and energy generation from
renewable energy as set under NAPCC, and
(b) addressing the issues and challenges
which the wind sector is faced with, such as
precise resource assessment, effective grid
integration, improvement in technology
and manufacturing base, to maintain its
comparative advantage in the wind sector.
ll Draft National
Renewable Energy Act 2015
The Draft National Renewable Energy
Act 2015 broadly proposes provisions for
institutional structure, supportive eco –
system, economic and financial framework,
long-term energy policy. Notwithstanding
the clear acknowledgement of the benefits
of renewable energy in these value based
to see explosive growth in
the coming years’
Dr Ajay Mathur, Director General, TERI, shares his vision and challenges on India’s
ambitious renewable energy target of 175GW by 2022.
relationship that governs the take up of
electricity from various sources by the
electricity distribution companies. This,
in turn, is linked to the issue of long-term
PPAs (into which electricity distribution
companies are today locked in). In
addition, the large amount of excess coal
based capacity would also work against the
integration of renewable electricity; this can
be overcome only if the price reductions in
renewable electricity are rapid and quickly
fall below those of coal based electricity.
Outline
This Act is broadly classified into the How do investors react to
following sections: the Government’s renewable
for the renewable electricity they supply
to the electricity distribution companies.
The NTPC Vidyut Vyapar Nigam Limited
(NVVN) experience showed that this
risk can be overcome if the counter
party is a maharatana like NTPC. Risk
reduction strategies to enhance counter
party confidence are therefore the key
intervention needed to ensure that
investors’ confidence in the renewable
electricity sector continues.
What is your vision for India’s
renewable energy sector?
I am of the opinion that renewable energy

constitution and operation of national and
state level funds to support achieving of the
objectives of the Act, and renewable energy
applications including distributed and grid
connected renewable electricity.
Purpose
The purpose of this Act is to promote the
production of energy through the use of
renewable energy sources in accordance with
climate, environment and macroeconomic
considerations in order to reduce dependence
on fossil fuels, ensure security of supply
and reduce emissions of CO2 and other
greenhouse gases. This Act shall in particular
contribute to ensuring fulfillment of national
and international objectives on increasing the
proportion of energy produced through the
use of renewable energy sources.
Need for a RE Law
The current energy sector planning based
on techno-economics discounts climate,
environment, social and economic impacts
and other qualitative considerations
related to long-term national risks that
may be critical from the perspectiveof
parameters, the current project evaluation
framework and energy sector planning do
not consider these advantages explicitly.
These distortions suggest that RE is not on
a level playing field when compared with
conventional power systems and needs
legislative support to claim it‘s due.
In the given context, increasing the share
of RE in the energy mix will require enabling
policies to stimulate changes not only in
policies related to RE deployment but also
in policies related to the planning of the
complete energy system. The mandatory
provisions after the enactment of Renewable
energy Law will provide the requisite
backbone framework to facilitate increase in
the use of renewable energy for all relevant
applications including electricity, heat and
transport in an effective and coordinated
manner, which is well integrated with the
energy and electricity system, and to do
so by developing a supportive ecosystem,
laying down a institutional structure ,and
by creating framework for transparent and
effective incentive structure.
Institutional Structure: The constitution
of decision-making and advisory bodies
in the government, which ensure the
development and implementation of a
stable and conducive policy regime to
facilitate investments for development of
renewable energy sources.
Supportive Eco–System: The development
of conducive ecosystem, which promotes
the utilisation of RE sources and permits
investments. This includes, RE Policy and
Plan, resource assessment, policies on
testing, monitoring and verification, and
indigenous manufacturing of components.
Economic and Financial Framework:
Constitution and operation of National
and State level funds to support achieving
of the objectives of this Act.
RE Applications: This section covers the
application of the above described framework
to two main categories of renewable sources:
Distributed Renewable Energy
Applications and Energy Access Grid
connected Renewable Electricity.
Source: PIB/MNRE
Q
Is India on track to energy policies? sector will continue to see explosive
meet its renewable The key challenge to investors today is growth in the coming years, largely
energy target of 175 the counter party risk, i.e. the limited powered by increasing RPO levels and
GW by 2022? confidence that they will be paid in time decreasing costs.
India is capable of meeting the 175
GW renewable energy targets by 2022.
The challenge is, on the one hand, to
accelerate price reduction in the case
of renewable energy electricity and the
Renewable Portfolio Obligation (RPO)
set by regulators. On the other hand, we
need to ensure that this renewable energy
electricity is absorbed by the grid. If the
current price reduction trends continue
(of 50% reduction in price for 10-fold
increase in the installed capacity), the
first part of the challenge could be met,
especially once a linkage between the
price and the RPO is established.
What challenges do you
foresee?
The challenge of integration of renewables
in the grid is more complex as it would
require a relook at the cost-reliability

42 | Energy Next | May 2016 May 2016 | Energy Next | 43

 State Policies
States are the wheels
for India’s RE surge
F
or proper planning of energy
resources and monitor its usage,
energy statistics are published
by the Ministry of Statistics and
Programme Implementation (MOSPI) in
their annual publication “Energy Statistics”.
The publication provides information on
renewable energy resources like solar, wind,
small hydro, biomass/bio-fuels, waste to
energy etc. The data relates to the end of
Financial Year, 2014-15 i.e. 31 March 2015
and has been sourced from the Ministry of
New and Renewable Energy.
According to the data available, the total
installed capacity of renewable energy sector
44 | Energy Next | May 2016
as on March 2015 was 38507.21. To this,
contribution of wind is the highest about two
third of the total; solar power is 12%, biomass
and SHP contribute little over 10% each.
The major contribution to total installed
capacity of renewable energy comes from
10 states namely Tamil Nadu, Maharashtra,
Rajasthan, Gujarat, Karnataka, Andhra
Pradesh, Madhya Pradesh, Uttar Pradesh,
Himachal Pradesh and Punjab which
together account for about 95% of Total
Installed Capacity of Renewable Energy.
The states contributing to renewable energy
are Tamil Nadu, Maharashtra, Karnataka,
Andhra Pradesh and Madhya Pradesh.
Additionally, Rajasthan and Madhya
Pradesh also contribute to these except
waste to energy; Punjab and UP except
wind power. This gives an overall picture of
the RE sector.
WIND POWER
In wind power, there are mainly 8 states
contributing to this and their ranking
in order are: Tamil Nadu, Maharashtra,
Gujarat, Rajasthan, Karnataka, Andhra
Pradesh, Madhya Pradesh and Kerala.
SOLAR POWER
In solar power, there are mainly 10 states
which together contribute to little over 95%. Rajasthan, Gujarat,
Madhya Pradesh, Tamil Nadu, Maharashtra, Andhra Pradesh,
Punjab, UP, Karnataka, and Telangana.
SMALL HYDRO POWER
In small hydro power sector, there are mainly 10 states which
contribute to about 80% to the sector. The states are Karnataka,
Himachal Pradesh, Maharashtra, Andhra Pradesh, Kerala,
Punjab, Jammu & Kashmir, Tamil Nadu, Arunachal Pradesh, and
West Bengal.
BIOMASS POWER
In biomass power, there are mainly 10 states which together
contribute to about 94% to the sector. The states are
Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Andhra
Pradesh, Chhattisgarh, Punjab, Gujarat, Haryana and Bihar.
WASTE TO ENERGY POWER
Waste to Power contributes less than 1% of the total renewable
energy. This contribution comes from eight states namely
Andhra Pradesh, Delhi, Maharashtra, Punjab, Tamil Nadu, Uttar
Pradesh, Uttar Pradesh, Madhya Pradesh and Karnataka.
renewable energy
Power Tariff Policy
amendments for
24X7 power for all
I
ndia’s Cabinet Committee on Economic Affairs (CCEA)
approved amendments to the National Tariff Policy 2005. The
amendments are also aimed at achieving the objectives of
Ujwal DISCOMs Assurance Yojana (UDAY) with the focus
on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs,
Environment for a sustainable future, Ease of doing business to
attract investments and ensure financial viability.
Highlights
Electricity for all
• The policy envisages 24*7 power supply to all consumers by 2022. State
Governments and regulators will devise a power supply trajectory to
achieve this.
• Power to be provided to remote unconnected villages through micro
grids with provision for purchase of power into the grid as and when the
grid reaches there.
• The policy allows production of power from coal washery rejects
(these are generated during coal washing) to provide affordable power to
people living near the coal mines.
Efficiency
• Reduce power cost to consumers through expansion of existing power
plants.
• Benefit from sale of un-requisitioned power to be shared allowing for
reduction in overall power cost.
• Transmission projects to be developed through competitive bidding
process to ensure faster completion at lower cost.
• Faster installation of smart meters to enable “Time of Day” metering,
reduce theft and allow net-metering.
Environment
• Renewable Power Obligation (RPO): In order to promote renewable
energy and energy security, 8% of electricity consumption excluding
hydro power, shall be from solar energy by March 2022.
• Renewable Generation Obligation (RGO): New coal/lignite based
thermal plants after specified date to purchase renewable capacity
• No inter-state transmission charges and losses to be levied for solar and
wind power.
Ease of Doing Business
• Generate employment in coal rich Eastern states by encouraging
investments. States allowed to setup plants, with up to 35% of power
procured by DISCOMs on regulated tariff.
• Remove market uncertainty by allowing pass through for
impact of any change in domestic duties, levies, cess and taxes in
competitive bid projects.
Source: PIB/MNRE
May 2016 | Energy Next | 45
 State Policies renewable energy

SHP
978 Installed Capacity of Renewable Power as on 31.03.2015 in MW
MW

Andhra Pradesh ASSAM Biomass Power

Waste to Energy
-
-
SOLAR Wind Power -

State Nodal Agency:
Non-Conventional Energy
Development Corporation of
Andhra Pradesh Ltd (NEDCAP)
Policy Highlights
AP solar power policy 2015
• All registered companies, Government
entities, individuals and all consumers of AP
DISCOMs) will be eligible for setting up of
Solar Power Projects within the State.
• The DISCOM(s) would enter into long
term PPA of 25 years with developers
who are selected based on a competitive
procurement process.
• These projects will also qualify for Renewable from the date of commissioning of the SPP.
Energy Certificates (RECs) subject to
applicable regulations/ guidelines issued by the AP wind power policy 2015
appropriate commission.
• The government will encourage solar power
producers to set up Solar Power Projects for
captive use within the State or third party
sale within and outside the State of Andhra
Pradesh.
• Eligible Developers who intend to set-up
solar photovoltaic plants at their premises, All subsequent development at self-identified
approvals/clearances shall be disposed by the
respective DISCOM within 14 days from the
date of application.
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
• The State will extend all facilities 38,440
and fiscal incentives provided
by Central Government/
National Solar Mission to the
manufacturers in Solar Parks.
• The Government will
promote solar rooftop
systems on public buildings,
domestic, commercial and industrial
establishments on gross and or net meter basis.
• Transmission and Distribution charges
shall be exempted for wheeling of power
generated from Solar Power Projects.
• Distribution losses shall be exempted only
for Solar Power Projects injecting at 33 kV
or below irrespective of voltage-level of the
delivery point within the DISCOM.
• Electricity duty shall be exempted for captive
consumption, sale to DISCOM(s) and third
party sale, provided the source of power is from
Solar Power Projects setup within the State.
• Cross subsidy surcharge shall be exempted
for third party sale, provided the source of
power is from Solar Power Projects setup
within the State for a period of five (5) years
• The wind power projects shall be allowed
in the areas notified by MNRE or in the
areas where wind monitoring studies
have been undertaken by MNRE/NIWE/
NREDCAP/GoAP.
• Permission for carrying out Wind
Resource Assessment (WRA) and
locations by the private entities will be given
by the Nodal Agency.
• There will be no Transmission and
389.75
58.16
1,155.12
232.23
357.34
2,192.60
Table Source: MoSPI
BIOMASS
578
MW
MW
Wind
14,497
MW
Distribution charges for wheeling of power
generated from wind power projects, to the
desired location/s for captive use/third party
sale within the State through grid. However,
the Transmission and Distribution charges for
wheeling of power generated from the wind
power projects for sale outside the State shall
be as per regulations of APERC.
• The wind power developers will be
encouraged to install higher capacity
and improved technology Wind Electric
Generators (WEGs)
• The Eligible Developer shall bear the
entire cost of power evacuation facilities for
interconnecting the wind farm with the grid.
• Banking of 100% of energy shall be
permitted during all 12 months of the year.
• All wind power projects are exempted from
paying Electricity Duty in case of sale of power
to AP DISCOM.
Policy on net metering for
solar grid interactive roof-
top and small spv power
plants in the state
• Under this facility, consumer will generate
solar power for self consumption and feed
excess power into the grid.
• The meter, having the feature of recording
both the import and export values, besides
other parameters notified by CEA metering
regulations and APTRANSCO /DISCOM
procedures in vogue, shall also be allowed for
arriving net energy for the billing period.
• The net metering facility shall be allowed
only for 3 Phase service consumers. Single
Phase consumers are not eligible for net
metering to avoid imbalance in the phases.
Content Source: NEDCAP
State Nodal Agency:
Assam Energy Development
Agency (AEDA)
Policy Highlights
Grid Interactive Solar PV
Systems Regulations, 2015
• The aggregate solar panel capacity of grid
interactive system to be installed at any eligible
consumer premises shall be between 1 kwp to
1,000 kwp, restricted to 40% of contract demand
of the eligible consumer with the licensee.
• The grid solar system under net metering
arrangement, whether self-owned or third party
owned installed on eligible consumer premises,
shall be exempted from wheeling and cross
subsidy surges.
• Eligible consumer shall comply with the
provisions of Central Electricity Authority
(Measures Relating to Safety and Electricity
supply) regulations 2010 and relevant provision
of National Electrical Code particularly those
related to Solar PV installations.
• The commission may determine suitable
tariffs for GISPP (separate tariff for projects with
and without capital subsidy) as per guidelines
of MNRE, Govt of India, and provision in the
connected Regulations of Commission.
• An eligible consumer shall be able to
participate in the REC mechanism and issuance
of REC shall as per the guidelines CERC
(Central Electricity Regulatory Commission).
• The eligible consumer shall bare all the costs
related to setting up of solar photovoltaic system
including metering and interconnection costs.
Assam Electricity
Regulatory Commission
(Smart Grid) Regulations, 2015
• All Smart Grid projects requiring investments
of more than Rupees 10 crores shall be
submitted to the Commission by the Licensee
for approval of Investments.
• The Commission shall allow creation of
provision for R&D activities in the field of
Smart Grid projects in the Aggregate Revenue
Requirement of the Distribution Licensee and
which may be equivalent to 1 paise per unit of
sales of the Distribution Licensee.
• The Commission shall review and approve
Small Hydro Power
Solar Power
Total
proposals for financial incentives/disincentives
to participating consumers to encourage active
and effective participation in the Smart Grid
programs.
• Licensees shall earmark 1%of the project cost
for each Smart Grid project towards consumer
awareness and 12 capacity building.
• Smart Grid Consultation Committee (SG-
CC) set up under these Regulations shall be the
nodal agency to guide the implementation of the
Smart Grid Project.
• The funding of the activities of SG-CC
(smart grid shall be met through a fund
created by the Commission. 1% of all license
fees collected shall be credited to the fund
and used for SGCC activities.
Policy for Small Hydropower
Development 2007
• All Hydropower projects/stations with an
SOLAR Wind
13,760
MW
34.11
-
34.11
Table Source: MoSPI
installed capacity of up to 25 MW are eligible
under this policy.
• The Govt of Assam shall declare ASEB/
Successor Company as nodal agency and
subsequently ASEB/GENCO shall constitute a
technical body and a nodal officer for clearing
of project proposals after detail scrutiny of
technical aspects.
• Optimum requirement of land for
implementation of a particular project shall be
allotted /sold at a premium / lease to be decided
case wise and shall continue a part of the bid
document.
• No wheeling charges are applicable in cases of
sales to the ASEB/Successor Company in case
power is supplied directly to ASEB/DISCOMs.
• The ASEB/GENCO will carry out the
implementation of evacuation facilities at
charges to be mutually negotiated. The cost of
transmission lines in excess of 5 km shall be
borne by the IPPs/Users society and ASEB/
GENCO on mutually agreed terms and
conditions.
• Developers can avail of the facility of banking
of energy within fixed period spans of 6 months.
All terms and conditions of the banking shall be
incorporated in banking agreement to be drawn
with the IPPs/Users society.
• For project upto 5
MW, there will be no
royalty, provided
entire energy SHP
239
MW
112
generated
MW
is sold within
BIOMASS the state of Assam.
212
For above 5 MW, a
MW royalty @Rs. 0.25 per unit of
net energy generated will be
paid to GOA by IPPs/Users
society. It may be reviewed after
5 years.
Content Source: AEDA

46 | Energy Next | May 2016 May 2016 | Energy Next | 47

 State Policies

Installed Capacity of Renewable Power as on 31.03.2015 in MW

SOLAR
BIHAR Biomass Power 43.42 CHHATTISGARH 18,270
Waste to Energy - MW
Wind Power - required for solar power
State Nodal Agency: Small Hydro Power 70.70 State Nodal Agency: projects included in the WIND
Bihar Renewable Energy
Solar Power .
Chhattisgarh State Renewable list notified by energy 314
Development Agency (BREDA) Energy Development Agency department shall be MW
Total 114.12 (CREDA)
entitled for exemption
Policy Highlights Table Source: MoSPI
by Commercial Tax SHP
Bihar Electricity Policy Highlights Department. 1,107
Regulatory Commission Chhattisgarh State Solar • Depending on availability, MW
(Rooftop Solar Grid Power Policy 2012 Government land will
Interactive Systems • The policy will come into effect from be made available to the
Based on Net Metering) the date of issuance and shall remain in project developer as per
Regulations, 2015 operation up to 31st March 2017. Solar policy of the state.
• The capacity of the solar energy system power plants approved, installed and BIOMASS
to be installed at the premises of any commissioned during this period alone Wind Energy
236
eligible consumer under Regulations shall shall be eligible for benefits of this policy. Policy 2006
not be less than one KWp and shall not • State Government endeavors to achieve • Chhattisgarh State
exceed one MWp. targeted solar power generation capacity Renewable Energy Development
• The distribution licensee shall provide between 500 to 1000 MW by March 2017. Agency (CREDA) will be the
net metering arrangement to eligible • All Solar power projects will be nodal agency for the wind power
consumers as long as the total capacity (in exempted from paying Electricity Duty development in the State, under the
MW) does not exceed the target capacity (ED) on auxiliary consumption and Department of Energy.
determined by the Commission and captive consumption within the state. • Developer will be given the land use right
the maximum capacity of an individual Energy projects shall be entitled to avail other biomass based project within a radial • VAT for all the equipments/material for the installation of generator of the land
rooftop PV system would be equal to the the facilities available under prevalent distance of 25Km.
sanctioned load of the consumer. Industrial Incentive Policy, and other
policies of the Govt. of Bihar. Hydro Power Policy 2012
Bihar Policy for • The capital cost of transmission system • Bihar State Hydroelectric Power
promotion of New and for evacuation of power to the nearest Corporation (BHPC) will be the Nodal
Renewable Energy grid/ sub-station including all metering Agency on behalf of the Government of
Sources 2011 & protective instruments shall be born Bihar for notifying hydropower locations,
• The project developer may purchase by BSEB, which shall be reimbursed to inviting proposals, examining the techno-
private land directly from the owners, on BSEB by the State Government, provided commercial feasibility of projects, etc.
their own. that the project developer offer to supply • Projects up to 3 MW will be allocated on
• The project developer shall necessarily BSEB// Distribution Licensee at least input cost basis and preference will be given
offer to supply to Bihar State Electricity 50%, subject to a minimum of 2 MW. to developers within the states. In case of self
Board (BSEB)/ Distribution Licensee a • Captive power project developer may identified projects up to 25 MW input based
minimum of 25% except for sell the generated power to the State grid/ cost may be allowed to the developers.
captive projects. BSEB after the captive consumption, if • The developer shall provide 12% free
• All New and the power available is more than 1 MW. power to the state as royalty. Out of above within 25 Km radius of “eligible site”.
Renewable • The electricity generated from the new 12%, 2% free power will be provided to • Acquisition of land will be carried
and renewable energy projects shall be the surrounding areas /villages in the Installed Capacity of Renewable Power as on 31.03.2015 in MW out as per the ideal rehabilitation policy
exempted from radius of 1 km from the project site. under land acquisition act of the State
SHP Biomass Power 264.90
electricity duty. • All entry tax and electricity tax will the Government.
223 Waste to Energy -
MW • In order to ensure exempted for projects up to 25 MW. • Wind energy generating companies
BIOMASS
availability of biomass • Once the project site is awarded to Wind Power - shall be also eligible for all the incentives
619
SOLAR MW and sustainability of
such projects having
developer, the developer will acquire land
from its owner as per norms defined by
Small Hydro Power
Solar Power
52.00
73.18
for new industries, declared in the
industrial policy of the Department
11,200 aggregate capacity of the government. If required, the nodal of Industries of the Government of
MW Total 390.08
WIND more than 2MW - SIPB agency will extend help. Chhattisgarh.
144 shall not approve any Content Source: BREDA Table Source: MoSPI Content Source: CREDA

MW
48 | Energy Next | May 2016 May 2016 | Energy Next | 49
 State Policies
Installed Capacity of Renewable Power as on 31.03.2015 in MW
J&K Biomass Power
Waste to Energy
Wind Power
State Nodal Agency: Small Hydro Power
Jammu & Kashmir Energy
Solar Power
Development Agency
(JAKEDA) Total
The Ladakh Renewable Energy
Development Agency (LREDA)
Kargil Renewable Energy
Development Agency (KREDA) Department/JAKEDA/LREDA/KREDA
and will be leased out to the IPP at token
rate to be decided by PAC.
Policy Highlights • Wherever forest land is involved, the
Solar Power Policy for state will facilitate permission for use
J&K 2013 of forest land for non forest purposes
• Solar Power Plants (SPPs) installed under the provisions of the J&K Forest
and commissioned during the operative Conservation Act. However, the
period shall be eligible for the declared compensation required to be paid for the
incentives under this policy, for a period purpose including the amount required
of twenty five years from the date of for net present value, compensatory
scheduled commissioning or as approved afforestation etc. will be paid by the entity.
by MNRE. • Mortgage deed in favour of the
• No entry tax will be levied by the state financing institutions required to
Govt. on Power generation/transmission be signed by the promoters shall be
equipment and building material used for exempted from payment of stamp duty.
Solar Power Plants. The State Government has already
• The Govt. land if required, for Power enabled equitable mortgage in the state.
Projects shall be acquired by JAKEDA • Exemption from court fee for
strictly as per project requirement for the registration of documents relating to
developer and leased to the developer lease of land will be granted to entities.
on payment of premium/rentals to be • No royalty in the shape of free power
determined by the Government till the has to be paid for the Solar Power
expiry of concession period. Projects. However, in case such provision
• In case of non availability of Govt. is incorporated by the MNRE in the
land, the land required shall be arranged guidelines the same shall be applicable.
by the entity for Science & Technology • Entities will be eligible for central
financial assistance as per the guidelines of
MNRE, GoI as may be applicable besides
other incentives by the state or centre.
• Electricity generated from the SPPs and
SOLAR BIOMASS used for self consumption/
1,11,050 43 sale to third party /sale to
MW MW licensees shall be liable
to pay @4 paisa per unit
under J&K Electricity
SHP Duty Act, 1963.
1,431 • Exemption from demand
WIND MW cut to the extent of 50% of the
5,685 installed capacity of SPPs, assigned
MW for captive use purpose, shall be
allowed.
50 | Energy Next | May 2016
renewable energy
SOLAR
- Gujarat 35,770
-
MW WIND
- 35,071
156.53 State Nodal Agency:
Gujarat Energy Development MW
- • Solar developers
Agency (GEDA) may set up SPGs for
156.53
sale of power to
Table Source: MoSPI
Policy Highlights third parties.
Gujarat solar power • The solar energy
BIOMASS
Policy for development policy 2015 generated by the
of Micro/Mini Hydro Power • The state will facilitate rooftop solar irrigation pump sets shall be SHP 1,221
Projects-2011 PV systems with net metering on credited towards the Discom’ 202 MW
• No entry tax will be levied by the state Govt. government, residential, industrial and s RPO. MW
on power generation/transmission equipment commercial buildings.
and building material used for Mini Hydro • Solar projects set up for captive use, either Gujarat wind power policy
Projects. directly or under the REC mechanism. 2013 and/ or any other sites
• The Govt. land if required, for Power • For the project not registered under • Any company or body corporate or identified as potential site,
Projects shall be allotted on lease for REC-50 % of wheeling losses as applicable association or body of individuals, within the State by the Nodal
40 years @ premium of Rs.1 per sq. m. to normal open-access consumer. whether incorporated or not, or artificial Agency or Developer.
However, in case of non availability • Solar Power Projects may be set juridical person, will be eligible for • The Wind Power Projects availing
of Govt. land, the land required shall up under NSM with sale of power to setting up of WTG. open access for third party sale shall be
be acquired by Science & Technology/ SECI,NVVN or any other designated • The WTGs may be set up at sites notified by liable to pay open access charges and
JAKEDA/ LREDA/ KREDA and leased out agencies. Gujarat Energy Development Agency (GEDA) losses as applicable to normal open access
to the IPP. consumers.
• Mortgage deed in favour of the financing • Wind Energy Generator owner, who
institutions required to be signed by the desires to wheel electricity at more than
promoters shall be exempted from payment of two locations, shall pay 5 paise per unit.
stamp duty. The state Government has already • The electricity generated from the WTGs
enabled equitable mortgage in the state. commissioned from 8.08.2012, may be sold to
• Exemption from court fee for registration GUVNL and / or any Distribution Licensee
of documents relating to lease of land will be within the state, at a rate of Rs. 4.15 per unit of
granted to the IPPs. electricity as per GERC order.
• 3% interest subsidy shall be payable
on the working capital facilities available Gujarat waste to energy
from the commercial banks to IPPs for a policy 2016
period of 5 years initially from the date of • The developers may set up power plants
allotment and to be reviewed after 5 years. utilizing Municipal Solid Waste for their
• 10% subsidy on capital investment captive use.
subject to the ceiling of Rs.60.00 lakhs • The urban local body shall not charge any tax,
shall be given in addition to the central cess, royalty, levies or nay other charges.
subsidy for the power projects from I MW • The appropriate voltage for injection of
to 2MW after successful installation & power by power projects shall be as per
commissioning of the project. GERC supply code.
Installed Capacity of Renewable Power as on 31.03.2015 in MW
• Royalty @ 12% shall be charged after • Electricity generated from power
the period of 10 years from the date of Biomass Power 55.90 projects based on USW shall be metered
commissioning of the Hydel projects up to Waste to Energy - on 15-minute time block by State
2MW capacity. Wind Power 3,876.50
Transmission Utility (STU).
• IPP will be eligible for central financial • The operation and maintenance of
Small Hydro Power 16.60
assistance as per the standing guidelines of dedicated evacuation line shall be carried
MNRE, GoI. Solar Power 1,024.15 out at the cost of the developers of power
Content Source: JAKEDA Total 4,973.15 project.
Content Source: GEDA
Table Source: MoSPI
May 2016 | Energy Next | 51
 State Policies
Karnataka
State Nodal Agency:
Karnataka Renewable Energy
Development Ltd. (KREDL)
Policy Highlights
The Karnataka solar
policy 2014-2021
• For the development of Solar Power projects
under this policy any individual/firm including energy policy 2014-2020
public utilities shall be eligible to apply.
• Solar projects under the REC mechanism
shall be eligible for Policy benefits as allowed• The sale of electricity by independent
under CERC/REC mechanism.
• Developers will be allowed to start project
execution without waiting for formal approval
on filing application for conversion of
agricultural land for setting up of solar power • Renewable Energy development is to be
projects on payment of specified fees.
• A separate cell shall be created in KREDL,
to ensure creation of Govt/Private land
banks for development of solar power
projects on lease basis.
• Time bound clearance for evacuation
approval from KPTCL. Reduction of
supervision charges by KPTCL/ESCOMS to
5 per cent.
• Tax concessions in respect of entry tax,
stamp duty and registration charges shall be as Fund, part for Renewable Energy
per Karnataka Industrial Policy.
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
52 | Energy Next | May 2016
SOLAR
24,700
MW
• The GoK (Government of
Karnataka) shall promote grid
connected solar rooftop projects on
public buildings, domestic through net
metering and gross metering methods.
• Private participation by providing “plug
and play” options for developers.
Karnataka renewable
MW
(wind, small hydro, biomass,
cogeneration and msw)
power producer will be governed by the
power purchase agreements executed
between the sellers and purchasers and
approved by the KERC.
classified as an industry. Land is, therefore
, to be made available to the developers by
the Government through allotment by the
Commerce and Industries Department Single
Window System.
• A Green Energy cess at Rs 0.05 per unit
on commercial and industrial consumers
to generate Rs 55 crores annually. Out of
Rs 55 crores to be collected as cess, a part
will be set aside for Energy conservation
Project Financing and strengthening the
664.28
1.00
2,871.53
1,177.85
104.22
4,818.88
Table Source: MoSPI
SHP
4,141
MW
BIOMASS
1,131
MW
Wind
13,593
evacuation system and the remainder
for an integrated information and
communication programme in the State.
• The wheeling of electricity generated from
the renewable sources mentioned in this
policy, to the desired location(s) within the
State and banking of such energy, shall be
allowed on such terms and on payment of
relevant charges as determined by KERC from
time to time.
• Tax concessions in respect of entry tax,
stamp duty and registration charges shall be as
per Karnataka Industrial Policy as amended by
GoK from time to time.
• No green energy cess is applicable on the
power procured from renewable energy power
projects in the State.
Karnataka energy
efficiency and conservation
policy 2015 – 2019
• Amendment of building bye laws for
enforcing the mandatory compliance with the
ECBC by all commercial buildings within the
city corporation limits of the state.
• Action shall be initiated to collect Rs 0.05 per
unit for Electricity supplied to all the industrial
& commercial consumers through DISCOMs
as Green cess.
• Under this Business Model, Distribution
Utility shall identify the technology as well
as targeted consumer categories based on the
load research.
• Sector specific responsible organizations
will suggest the modifications/amendment in
policy to the Nodal Agency.
Content Source: KREDL
Himachal
Pradesh
State Nodal Agency:
Himachal Pradesh Energy
Development Agency
(HIMURJA)
Policy Highlights
HP Solar Power Policy-2016
• Investment in the solar power projects
shall be treated like investment in
industrial project. Therefore, investor
has to take his own investment decision.
Generation is delicensed and no
approvals and controls are required. It is
only in hydel, where Govt. concurrence
for dam safety and water potential
optimisation is required.
• Preference in power purchase from
solar generation within the State will
be given to achieve RPPO, instead of
purchasing power from outside the State
and purchase of RECs.
• The state will endeavour to create land
banks for allocation to power producers,
on the lines of industrial estates.
• The electricity consumers of HPSEBL
shall be eligible to install minimum 1 KW
to maximum 5 MW capacity solar PV
plants on their building roof top.
• HPERC has framed
Regulations and fixed tariff
of Rs. 5 per unit for surplus
energy, which is one of the
highest tariff in the region, so SOLAR
as to encourage investment.
• State Govt. will facilitate
the developers in obtaining
statutory clearances, and
procedures and processes
for various State level clearances
and support will be made simple,
transparent with self certified
documentation, so as to ensure doing
business with ease.
HP Small Hydro Power
Policy-2006
• The State Government may give
renewable energy
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power -
Waste to Energy
Wind Power
-
-
Small Hydro Power 754.80
Solar Power -
Total 754.80
Table Source: MoSPI
first preference to the developers of Himachalis. However, not more than 2
HEPs above 5.00 MW and upto 25.00 projects falling in this category shall be
MW to Himachalis who have been allotted to the same Himachalis.
living in Himachal Pradesh • HPSEB shall purchase power from private
and Cooperatives of such parties/joint sector companies setting up the
Small Hydel Power Stations @ Rs. 2.50 per unit.
• Wheeling for captive use within the State
shall be allowed by HPSEB at a fee of 2%
(including system losses). For sale/captive
BIOMASS use of power outside the State the HPSEB
33,840 142 shall levy wheeling charges @ 10%
MW (including system losses) of the energy
MW
received (excluding royalty) at the
interconnection point for wheeling/
transfer of power up to the mutually
Wind agreed inter-state point.
64 • The Agreement shall remain in
MW force up to a period of 40 years
SHP from the Scheduled Commercial
Operation Date of the Project,
2,398 thereafter, the Project shall
MW revert to the State Government free
of cost and free from all encumbrances.
Content Source: HIMURJA
May 2016 | Energy Next | 53
 State Policies
MADHYA PRADESH
State Nodal Agency:
New and Renewable Energy
Department (NRED)
Policy Highlights
Policy for implementation
of small hydel-power based
electricity projects in
Madhya Pradesh, 2011
• This policy shall be applicable to all the
small hydel power projects up to 25 MW
capacity which have been identified by
the Water Resources Department.
• The selected developer has to execute
the HPDA within 30 days of depositing
performance guarantee.
• Within 30 days of the financial closure,
the developer shall have to deposit 0.5
percent of the total project cost
• All the milestones for the development
of project shall be the part of HPDA till
the commercial operation date.
• The performance guarantee shall be
released after 3 months from the date of
commercial operation of the project.
• The power consumed from the small
hydel power projects for the purpose of
captive use or third party sale shall be
exempted from payment of Electricity.
Policy for implementation
of solar power based
projects in Madhya
Pradesh, 2012
• All Solar energy based power project
Developers (Solar PV/Solar thermal)
and manufacturing units of equipments,
ancillaries related to Solar Power projects
shall be eligible for benefits under the Policy.
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
54 | Energy Next | May 2016
Wind
2,931
MW
SHP
SOLAR 820
MW BIOMASS
61,660 1,364
• The GoMP
MW MW
(Government
of Madhya
Pradesh) will
promote decentralized and organisation/registered company
off-grid solar applications, including hybrid etc. shall be eligible to apply for the
systems as per guidelines issued by MNRE. development of the project.
• Policy benefits like banking, wheeling • Applicant shall have to ensure that
etc. as brought out in this policy shall be wind turbine generator being installed at
applicable as per the provisions made out by the project site proposed by them should
CERC and or the authorities in this respect. be at a technically safe distance from
• The Developer shall submit monthly progress the other nearest previously identified/
report in the prescribed format with related installed wind turbine generators.
documents from the date of registration. • Developer has to deposit the Performance
• Metering equipment, as may be stipulated Guarantee to ensure timely installation of
by MPPTCL or by respective MP Discom, the project on government land.
shall be installed at the interconnection point. • The prime lending institution shall have
the right to substitute the developer for
Wind power project policy land use permission during the loan period.
of Madhya Pradesh - 2012 • In case the developer sell power to Third
• Any individual/firm/society/ Party Consumers/ Licensee distributor/ Power
Trading Company then it shall be bound for
payment of wheeling and transmission charges
36.00 to the MPPTCL/Distribution Company,
3.90 subject to the final decision taken by M.P.
1,126.19 Electricity Regulatory Commission.
• M.P. Power Trading Company shall
86.16
have the first right to purchase the power
678.58
generated from the project installed entirely
1,930.83 or partly on Government land.
Table Source: MoSPI Content Source: NRED
KERALA
State Nodal Agency:
Agency for Non-conventional
Energy and Rural Technology
(ANERT)
Policy Highlights
Kerala Solar Energy
Policy 2013
• For off grid systems the policy seeks to
ensure bank finance at attractive rates.
• KSEB will have first right of refusal for the
power from the plants established in private
lands / premises, except in cases of self/
captive use.
• KSEB shall create necessary evacuation facility
beyond the pooling station for the projects with
capacity less than or equal to 10MW.
Kerala Small Hydro Power
Policy 2012
• Small Hydro Power Projects below 25
MW will be assigned for development
by Government to developers through
competitive bidding.
• Total period of allotment of any project,
including period of construction, will be
limited to 30 years from the date of allotment.
• Small Hydro Power Projects, such projects
shall not attract levy of water cess.
• KSEB will permit banking facility during
a financial year subject to availability of Grid
and the rights for banking the energy with
the KSEB and charges applicable for the same
shall be determined by the regulation in force
from time to time.
• All distribution licensees and KSEB
shall follow the renewable energy purchase
obligation as decided by the Kerala State
Electricity Regulatory Commission.
• KSEB and other Distribution licensee may
procure power from the Small Hydro Power
Projects at the tariff fixed by the KSERC.
• Wheeling charges as per the rate fixed by
KSERC from time to time will be levied from
the developer. T&D losses in the Transmission
& wheeling of energy from generating station
to the consumption point for captive producers
shall be fixed by KSERC and governed by the
regulation in force from time to time.
• All transactions related to the procurement
renewable energy
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power -
Waste to Energy -
Wind Power 35.10
Small Hydro Power 198.92
Solar Power 12.03
Total 246.05
Table Source: MoSPI
of power by KSEB/Distribution licenses from development of wind power for a period of
the Developer Company shall be settled on 20 (twenty) years from the date of allotment.
monthly basis.
• KSEB will provide a relief in demand Kerala Renewable Energy
charges to HT/EHT captive consumers for Policy 2002
continuously operating their captive power • All power producers generating grid-grade
plant for a minimum of 15 days during a including power producers from ‘stand alone
month limited to 50% of the value. projects’ using Non-conventional Energy
• The transmission facilities upto the inter‐ Sources are ‘eligible producers’ under the policy.
connection point shall be constructed by the • In the case of small hydro projects, only
developer through STU/KSEB as a deposit work power producers having installed station
at the cost and responsibility of the developer. capacity of and below 25 MW will be treated as
eligible producer.
Guidelines for • Power generated through Renewable
Development of Wind Energy Sources, if purchased by Kerala
Farms in Private Land 2007 State Electricity Board (KSEB), will be
• Any individual, company, body corporate, at a ceiling rate of Rs.2.50 per unit from
partnership firm, joint venture-whether small hydel power plants.
incorporated or not, artificial judicial person • For power from all other renewable energy
intending to set up wind firm in private land sources, price will be at a ceiling rate of Rs.2.80
shall obtain technical approval from ANERT. per unit, with base year fixed as 2000-01 and
• The developer at their own cost and with 5% escalation for every year up to 5
responsibility shall carry out necessary years of operation.
infrastructure development such as • Large Industries having 2000
construction of approach roads, improving to kVA and above as connected
existing roads etc.
• KSEB/STU shall develop the evacuation
facility according to a master plan prepared in load, SOLAR
consultation with ANERT to evacuate the total should 6,110
power from each of the potential sites. produce at least MW
• The benefits of Carbon Credit if any available 5 per cent.
shall be shared equally between STU/buyer and • The power
investors. generated by eligible
producer and bring SHP
704
Kerala Wind Energy on the grid for captive MW
Policy 2002 use or for banking, at a
• The development of wind power generating uniform wheeling charge
stations through private developers includes of 5 per cent of energy fed
Wind
837
development in Government and private into the grid, which includes MW
lands. Any developer is free to set up compensation for transmission
wind power in private lands subject to the loss also, irrespective of the
provisions in these guidelines. distance from the generating
BIOMASS
• Government land will be licensed to station.
1,044
CPPs on payment of a licensing fee for the Content Source: ANERT
MW
May 2016 | Energy Next | 55
 State Policies renewable energy

Installed Capacity of Renewable Power as on 31.03.2015 in MW

PUNJAB
State Nodal Agency:
Punjab Energy Development
Agency (PEDA)
Policy Highlights
New and Renewable
Sources Of Energy (Nrse)
Policy – 2012
• The State Government shall provide
the 6 clearances in a time bound manner
through a single window mechanism
within a period of 60 days.
• The tariff for Biomass/Biogas projects
will be re-determined by PSERC for the
remaining period of PPA.
• PSPCL/LICENSEE shall sign a Power
Purchase Agreement within 30 days from
the date of order issued by Commission in
case tariff approval is to be given by PSERC.
• Monthly information with regard to
parameter like energy generated, revenue
earned, power factor and plant load factor
achieved, reasons for non achievement of
full generation etc shall be submitted to
maintain and update data bank on NRSE
generation in the state.
• All NRSE project developers in the
state (including Captive,
SHP
441
MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
Cogeneration, IPP and merchant power
developers) will be required to submit their
project proposals with PEDA for approval
and validation for sale of power in or
outside the state.
• NRSE projects of capacity more than 1 MW
shall be allocated on the recommendation of
the Project Allotment Committee.
• The NRSE projects shall be provided
tariff for sale of power as per PSERC/RE
tariff orders and shall be governed
by RE regulations.
140.50
10.25
- project for expenditure made on evacuation
157.40
200.32
508.47
Table Source-MoSPI
shall be eligible with project capacity
ranging from minimum 1 KWp up to
1MWp.
• The leasing company generates
revenues by way of lease rental from the
rooftop owner under a contract. It also
qualifies for claiming depreciation on
the capital cost of the PV systems with
associated direct tax benefits.
• PSPCL shall deal with the rooftop
owner or consumer only and arrangement
between rooftop owner and developer
shall be personal to them.
Maharashtra
State Nodal Agency:
Maharashtra Energy arrangement.
Development Agency (MEDA) • It will be necessary for the project developers
of small hydro power projects to sell power
Policy Highlights primarily to any distribution licensee in the state
Comprehensive Policy for fulfilling the Renewable Power Obligation at
For Grid Connected the preferential tariff fixed by MERC. generated from these projects can be sold to
Power Projects Based the distribution licenses by competitive bidding
On New And Renewable Biomass based Power Projects ,or it can be used for captive purpose within
(Nonconventional) Energy • The project developer will be granted or outside state or for third party sale or for
Sources - 2015 infrastructure clearance by MEDA for availing Renewable Energy Certificate mechanism.
benefits under this policy. • The regulations and orders of MERC in
Wind Power Projects • The evacuation arrangement would include the matter of evacuation arrangement and
• Deemed non-agricultural land status is being the strengthening or modification of existing expenditure will be applicable to the solar power
made applicable in respect of the land procured sub-stations and transmission lines. projects under this policy.
• Electricity duty will not be levied for the first
Installed Capacity of Renewable Power as on 31.03.2015 in MW
10 years in respect of the solar power projects
Biomass Power 1,033.40 established under this policy.
Waste to Energy 12.72
Wind Power 4,638.35 Policy For Grid Connected
Solar Power Projects
Small Hydro Power 336.87
• The private land required for the solar power
Solar Power 378.7 projects developed under this policy will be
Total 6,400.04 procured by the project developer himself.
Table Source-MoSPI • The electricity generated from these projects
for wind power projects under this policy. • The State Electricity Regulatory Commission can be sold to the distribution licenses by
• The regulations and orders of MERC in will factor in the incentives provided under this competitive bidding ,or it can be used for captive
the matter of evacuation arrangement and policy while working out the tariff for biomass purpose within or outside state or for third
expenditure will be applicable to the wind power based power projects. party sale or for Renewable Energy Certificate
projects under this policy. • It will be necessary for the project developers mechanism.
of biomass based projects to • The regulations and orders of MERC in
Bagasse / Agricultural Waste based Co- sell power primarily to
generation Power Projects any distribution licensee
• It will be necessary for the project developers in the state for fulfilling
of bagasse/agricultural waste based co- the Renewable Power
Wind
generation projects to sell power primarily Obligation at the
preferential tariff
BIOMASS 5,961
to any distribution licensee in the state for 1,887
fulfilling the Renewable Power Obligation at the fixed by MERC. SOLAR MW
MW

Policy On Net • As per Open Access Regulations in preferential tariff fixed by MERC. 64,320
Metering For Grid force, third party owned system may • The regulations and orders of MERC in Solar Power MW
BIOMASS Interactive result in an open access transaction with the matter of evacuation arrangement and Projects the matter
Roof-Top Solar implications of wheeling charges and expenditure will be applicable to the bagasse/ • The private of evacuation
3,172 Photo Voltaic surcharge relating to cross subsidy. agricultural waste based co-generation projects land required for arrangement and
MW SOLAR Power Plants • Net metering injection is not eligible under this policy. the solar power expenditure will be
2,810 • All the consumers of for REC. The quantum of electricity projects developed SHP applicable to the solar power
MW the State Distribution
licensee or PSPCL
consumed by an eligible consumer, shall
qualify as deemed Renewable Purchase
Small Hydro Power Projects
• The project developer as per availability of
under this policy
will be procured by
794 projects under this policy.
• Electricity duty will not be levied for
who set up solar PV plants at Obligation (RPO) for the distribution funds will be given financial assistance by the project developer
MW the first 10 years in respect of the solar power
available places on roof-tops licensee. MEDA as reimbursement from the green himself. projects established under this policy.
of Individual households, industries, Content Source-PEDA cess fund upto a maximum of Rs 1 crore per • The electricity Content Source-MEDA

56 | Energy Next | May 2016 May 2016 | Energy Next | 57

 State Policies
Delhi
State Nodal Agency:
Energy Efficiency and
Renewable Energy
Management Centre (EE&REM)
Policy Highlights
Delhi Solar Energy Policy,
2015
• This Policy will be applicable for any
solar energy generating system with a
capacity of 1 KWp or more.
• A GBI of INR 2.00 per unit (kWh) of
gross solar energy generated is proposed
for 3 years, starting from 1st January 2016
to 31st December 2018. GBI will be paid
on a first-come-first-served basis until
the funds earmarked for GBI run out.
• This policy applies to all electricity
consumers under all electricity tariffs in
Delhi and to all entities that setup and
operates power plants in Delhi.
• There shall be no Open Access Charges
during the Operative Period of the Policy
if the solar electricity is generated and
consumed within the State.
• The State shall explore the feasibility of
floating solar power plants on top of some
of the perennial water bodies in Delhi as
well as on the rooftop of moving buses
and eRickshaws.
• Up to a solar plant capacity of 150
kWp, the consumer shall be responsible
for the inspection and verification before
commissioning.
• The implementation of rooftop solar
energy systems shall be permitted
by the State Planning Department,
after necessary scrutiny. Residential
Installed Capacity of Renewable Power as on 31.03.2015 in MW : DELHI
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
58 | Energy Next | May 2016
SOLAR
2,050
MW
consumers opting to implement solar
plants to sell power to the grid shall be shall be exempted
exempted from conversion of house tax to from VAT and
commercial tax. entry tax during the
• Electricity Tax (currently 5%) shall Operative Period.
be exempted for solar energy units • There shall be no wheeling
generated, whether for self-consumption and banking charges for solar plants
or supplied to the grid. commissioned during the Operative Period.
• All solar panels, inverters, energy • Exemption of payment of cross-subsidy
meters, and other devices purchased for charges and surcharge for solar plants
the installation of solar plants in Delhi commissioned during the Operative
Period of the Policy.
• No Transmission Charges for solar
plants commissioned during the
Operative Period of the Policy.
-
• All risks, costs, and efforts associated
28.00
with the availing of carbon credits shall
- be borne by the solar energy generating
- entity. Further, the generating entity
6.71 shall retain the entire proceeds of carbon
credit, if any, from an approved CDM
34.71
project.
Table Source: MoSPI Content Source: EE&REM
ODISHA
State Nodal Agency:
Odisha Renewable Energy
Development Agency (OREDA)
Policy Highlights
Odisha Renewable Energy
Policy, 2015-22
Solar
• All project developers who intend to
set-up solar photovoltaic plants on canal
tops/ banks shall be allotted land with
no lease charge. The water bodies shall
be allotted without any land cost.
• Eligible developers (lowest price bidder)
are allowed to avail the relevant subsidies
and incentives from MNRE under JNNSM
scheme. Further, State Government shall
give incentive of 50 paise per unit of gross
generation from systems installed by
residential consumers under this scheme.
• Solar parks shall be developed by
GEDCOL on non-agricultural, non-forest
government land. GEDCOL shall own the
land and be responsible for development of
the basic infrastructure.
• All solar PV and solar thermal project
developers, manufacturers developing solar
projects in notified Solar Parks shall be
eligible for benefits under this policy.
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
SOLAR
25,780
MW
WIND
1,384
MW
BIOMASS
246
MW
• The Government of Odisha would
SHP make land available to the project developer
295 in accordance with the Industrial Policy
MW Resolution (IPR).
• The Government land required for setting
up of wind monitoring station shall be
allotted on temporary basis to the developer
Hydro for maximum period of 3 years at the rate
• The Government of Odisha gives period decided by District Level Committee.
of 6 months from the date of this policy, to the
developers to complete all preparatory work and Biomass
achieve financial closure. • The State targets a capacity addition of 180
• The Project developer shall have the right MW through biomass projects during the
to sell power to any entity in the State or policy control period.
outside the State. • The Government of Odisha would make land
• Self-identified projects up to the capacity available to the project developer in accordance
of 100 kW shall be directly allotted on ‘first with the Industrial Policy Resolution (IPR).
come first serve basis’ and shall be required
to obtain the techno-economic clearance Municipal solid waste
from the Odisha Renewable Energy • The Urban Local Bodies (ULBs)
Empowered Committee (OREEC). in Odisha, categorized as Municipal
corporations, Municipalities and Notified
Wind Area Councils shall be responsible for
• GRIDCO shall purchase 200 MW infrastructure development.
wind power capacity at generation tariff • GRIDCO shall purchase the power from
determined by OERC from time to time. such projects at generation tariff set by OERC,
which ideally shall be only fixed cost of
generation.
• The State Government will create a separate
Odisha Renewable Energy Development
Fund (OREDF) within 6 months of issuance
of this policy for accelerated development of
renewable energy in the state.
Other incentives:
• New industrial unit other than in Priority
sector industries shall be exempted from the
payment of electricity duty up to a contract
20.00 demand of 500 KVA for a period of 7 years
- from the date of availing power supply for
commercial production.
-
• New Micro and Small Enterprises and
64.63
Priority Sector units shall be eligible for 100%
66.92
reimbursement of Entry Tax on purchase of raw
151.55 materials for a period of five years.
Table Source: MoSPI Content Source: OREDA
May 2016 | Energy Next | 59
 State Policies
RAJASTHAN
State Nodal Agency:
Rajasthan Renewable Energy
Corporation Limited (RRECL)
Policy Highlights
Rajasthan Solar Energy
Policy 2014
• In case of solar power projects established Plant in excess of ceiling limit
for sale of power through REC mechanism,
the Power Purchase Agreement will be
signed between Solar Power Producers and
the Discoms of Rajasthan whereas in case of
third party sale it will be executed between Committee after evaluating / examining
the Power Producer and the procurer on
mutually agreed rates.
• Solar Power Producers may construct
Common Pooling Sub - Station to
evacuate their generated solar power to
the RVPN / Discom substation through
common transmission line with separate
metering system at their Common
Pooling Sub-Station and main metering
system at RVPN / Discom Sub Station.
• The allotment of land to Solar Power
Projects will be done as per the provisions
of Rajasthan Land Revenue Rules, 2007.The
State will promote setting up of Solar Power Regulatory Commission (RERC).
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
60 | Energy Next | May 2016
SOLAR WIND
5,050
1,42,310
MW
MW
Plant / Solar
Farm on
private land. Solar
Power Producers
shall be allowed to
BIOMASS SHP
purchase private land for 1,039 57
setting up of Solar Power MW MW
in accordance with the provisions of
Ceiling Act, 1973.
• In-principle clearance of projects will
be granted by the State Level Screening
the project proposals. • The power injection beyond the nominal
Policy For Promoting voltage range of 97% - 103% may attract
VaR charges as per the relevant Grid Code.
• The allotment of land to the Wind Power
Developers will be done as per the provisions
of Rajasthan Land Revenue Rules, 2007.
• For augmentation of transmission/
distribution systems to evacuate the power
from receiving Sub-station, RVPN/Discom
shall develop the necessary transmission
within mutually agreed timeframe.
• The Power Purchase Agreement will be
executed between Discoms of Rajasthan
and Power Producer on the preferential
tariff determined by RERC whereas in case
Generation Of Electricity of successful bidders it would be as per the
From Wind, 2012 provisions of bid documents .
• The power generated from these power
projects shall be purchased by Discoms Policy For Promoting
of Rajasthan at Pooled Cost of Power Generation Of Electricity
Purchase determined by the Commission From Biomass, 2010
from time to time. • The sale of electricity by Power Producer
• The minimum Renewable Energy to Discoms will be governed by the Power
Purchase Obligations (RPO) for the Purchase Agreement executed between the
Discoms of Rajasthan shall be governed by concerning Discom and the Power Producer
the relevant orders of Rajasthan Electricity as per the order of RERC in this regard.
• The Government land required for
Biomass Power Plant shall be allotted to
Power Producer at concessional rates of
11.30 10% of DLC rates.
- • For augmentation of transmission/
distribution systems to evacuate the power
3,866.34
from receiving station, RVPN / Discom
23.85
shall develop/augment the necessary
1,264.35 transmission/ distribution network within
5,165.84 mutually agreed timeframe.
Table Source-MoSPI Content Source: RRECL
TAMIL NADU
State Nodal Agency:
Tamil Nadu Energy
Development Agency (TEDA)
Policy Highlights
Tamil Nadu Solar Energy
Policy 2012
• A generation based incentive (GBI)
of Rs 2 per unit for first two years, Re 1
per unit for next two years, and Re0.5
per unit for subsequent 2 years will
be provided for all solar or solar-wind
hybrid rooftops being installed before 31
March, 2014.
• Tamil Nadu will select developers
through Tariff based reverse/competitive
bidding.
• Appropriate tax incentives as per the
Tamil Nadu Industrial Policy will be
provided to attract investors from India
and abroad.
• The wheeling and banking charges
for wheeling of power generated from
the Solar Power Projects, to the desired
locations for captive use/third party
sale within the State will be as per the
orders of the Tamil Nadu Electricity
SHP
660
MW
BIOMASS
1,070
MW
SOLAR
17,670
MW WIND
14,152
MW
renewable energy
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power 662.30
Waste to Energy 8.05
Wind Power 7514.76
Small Hydro Power 123.05
Solar Power 418.95
Total 8727.11
Table Source: MoSPI
Regulatory Commission.
• Exemption from payment of
electricity tax to the extent of
100% on electricity generated
from Solar power projects used
for self-consumption/sale to
utility will be allowed for 5 years.
• Tax concessions as per the Tamil
Nadu Industrial Policy will provided.
• Exemption from demand cut to
the extent of 100% of the installed
capacity assigned for captive use
purpose will be allowed.
• Guaranteed Single Window
Clearance will be provided through cottage and tiny industries ,power looms,
TEDA in 30 days so that the plants can LT Industrial consumers and agricultural
be commissioned less than 12 months. consumers may fulfil their SPO by purchasing
• Lands will be identified for development
of exclusive solar manufacturing parks.
power from TANGEDCO at Solar Tariff.
• Appropriate tax incentives as per Tamil
The state will promote setting up of Nadu Industrial Policy will be provided
solar manufacturing industries in these to the investors. A solar manufacturing
exclusive solar manufacturing parks ecosystem will be created that include solar
• The SPO will be administered by research centres, test facilities etc.
TANGEDCO. Domestic consumers, huts, Content Source: TEDA
May 2016 | Energy Next | 61
 State Policies
MANIPUR
State Nodal Agency:
Manipur Renewable Energy
Development Agency
(MANIREDA) POLICY
Policy Highlights
Policy on Renewable
sources for promotion of
generation through Non
Conventional Energy, 2006
• 100% accelerated depreciation for
tax purpose in the first year of the
installation of projects/ systems.
• No excise duty on manufacture of most
of the finished products.
• Low import tariffs for capital equipment
and most of the materials and components.
• Soft loans to manufacturers and users for
commercial and near commercial technologies.
• Five year tax holiday for, power
generation projects.
• Remunerative price under alternate
power purchase policy by State
Government for the power generated
through renewable energy systems fed to
the grid by private sector.
• Facility for Banking and wheeling of power.
• Facility for third party sale of renewable
energy power.
• Financial incentives/subsidies for
devices with high initial cost.
• Involvement of women not only as
beneficiaries but also for their active
contribution in implementation of
renewable energy programmes.
• Special thrust for renewable energy in
North-Eastern region of the country. 10%
of Plan funds earmarked for North-East
toward enhanced and special subsidies.
Installed Capacity of Renewable Power as on 31.3.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
62 | Energy Next | May 2016
Manipur Grid Interactive
Rooftop Solar Photo Voltaic
(SPV) Power Policy, 2014
• Eligible project capacity limit under the
scheme will be from 1 KW upto 500 KW.
• A Power Purchase Agreement (PPA)
should be signed between the owner of
buildings, 3rd party, MANIREDA and
MSPDCL as applicable.
• An agreement between MSPDCL and
the owner of building/premise/SPV plant
needs to be signed for the net metering
and billing on the monthly/bi-monthly
basis as applicable.
• Rate and amount of applicable subsidy
would be according to approved rate,
sanctioned amount and also on
SHP
the basis of allocated target by the
MNRE, GoI.
109
MW
Hydro Power policy,
2012
• All Entry Tax on power
generation and transmission
equipments meant for the
project are deemed to be
- Government policies/rules. In case
-
- Wind Power
5.45
- • No wheeling charges are applicable
5.45
Table Source: MoSPI
CHANDIGARH
CHANDIGARH RENEWABLE
ENERGY SCIENCE &
TECHNOLOGY PROMOTION
SOCIETY (CREST)
Roof top based Solar PV
system
The approved Master Plan of
Chandigarh Solar City envisaged mid
term target of 5 MWp Rooftop Solar (
by 2017) and long term target of 10 MWp
rooftop solar plants installation by 2022.
Chandigarh is well ahead in terms of
exempted from such Tax achievement and has already installed
• The tariff for sale of energy from and commissioned 6.5 MWp Grid tied
the project shall be decided by Joint Rooftop Solar plants as on 31 March 2016
Electricity Regulatory Commission In view of enhanced target of 100 GW
Manipur-Mizoram/ CERC as to be achieved by 2022 as announced
per the Central by Govt of India last year, MNRE,
SOLAR
10,630
MW
BIOMASS
13
MW
WIND GOI has set 50 MW as Solar PV target
56 for Chandigarh Administration to be
MW achieved by 2022 in tune with Revised
Power Tariff Policy of 2016.
Work is under full swing on another
Installed Capacity of Renewable Power as on 31.03.2015 in MW
Biomass Power
any government subsidy is provided in Waste to Energy
development of project, such component
of project cost shall be excluded for
determination of tariff Small Hydro Power
Solar Power
in cases of sales to the Electricity Total
Department / concerned State utility.
Content Source: MANIREDA
20 sites of overall
capacity 3.5
MW and likely to be
completed by July 2016.
CREST plans to install 12 MW
solar power plant by March
2017 in Chandigarh.
As on today, Chandigarh is
generating 8.45 million units of solar
electricity annually and most of these
plants are under net metering scheme so that
solar energy generated is first used in the local
building and excess, if any is exported to grid.
Innovation in Procurement/
Installation of SPV Power
Plants
• Guaranteed Minimum Electricity
Generation for each solar plant
• Make in India Initiative by having only
Indian made Solar Panel with Minimum
Efficiency of 15%.
• Grid Interactive SPV System
• Third Party Inspection for solar plants
- notification is likely to be issued shortly.
-
-
- shall be able to obtain subsidy as well as
5.04
5.04
Table Source: MoSPI
renewable energy
WASTE TO
ENERGY
6
MW
installed to ensure its technical standards
& quality.
• Provision for 10 Year O&M in the
DNIT itself to ensure good quality
products being installed by EPC
Contractor
Initiatives taken in
Promotion of Solar power
in Private sectors:
• On the initiative of UT administration,
Joint Electricity Regulatory Commission for
Goa & UT has notified a new Solar Tariff
& Net metering Regulation 2015 wherein
solar Tariff has been kept @ Rs 8.51 per unit
(kWhr) which is very attractive and is likely
to motivate Private residents to go for solar
rooftop plants.
• CREST has empanelled 27 solar plant
installers/aggregators along with rates
from whom any residents can install Solar
plant and can avail 30% subsidy.
• UT Chandigarh is in final stage of
amending Building By- laws to make
Solar PV Installation mandatory on all
buildings above certain size and draft
A new website/software has been launched
thereby providing ease of business and
transparency to all people wherein they
all regulatory clearances online from the
electricity dept and electrical inspectors
within a fixed time .
Content Source: CREST
May 2016 | Energy Next | 63
 State Policies
TELANGANA
State Nodal Agency:
Telangana New and Renewable
Energy Development
Corporation Limited (TNREDCL)
Policy Highlights
TELANGANA SOLAR POWER
POLICY 2015
• Solar Policy Cell (SPC) to undertake single
window clearance for all SPPs.
• Evacuation to be at the appropriate
voltage level at the interconnection point of
TSTRANSCO or TSDISCOMS and evacuation
up to the interconnection point to be the sole
responsibility of the SPP developer.
• Developer to ensure that the generation is
within the time limit stipulated in the PPA
or within a maximum period of 2 years from
the date of application whichever is earlier,
failing which the provisions under this policy
automatically stands cancelled.
• Developer to acquire land for solar project.
Land acquired for grid-connected SPPs for sale
to DISCOMs/ captive use/ third party sale or
for Solar parks shall be deemed to be converted
to Non agricultural land status on payment
of applicable conversion charges as per the
Agricultural Land
• Ceiling limit as per the land ceiling act not
applicable for land acquisition for SPPs and
Solar Parks. Exemption available only against
firm orders/ PPAs/ successful bids to the extent
of land required.
• Wheeling and transmission charges exempted
for captive use within the state but applicable for
third party sale.
• Exempted for captive consumption, sale
to DISCOMS and third party sale from solar
projects set up within the state. Electricity duty
to be waived for the new manufacturing facilities
Installed Capacity of Renewable Power as on 31.3.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
64 | Energy Next | May 2016
SOLAR
20,410
MW
and ancillaries of the SPPs
• For SPP located and selling power to third
parties within the state, 100% exemption on
the cross subsidy surcharge as determined
by TSERC for five years from the date of
commissioning
• 100% refund of VAT/SGST for all the
inputs required for SPP to be provided by the
Commercial Tax Department for 5 years.
• 100% refund of Stamp Duty for land
purchased for setting up SPP and/or Solar parks
by Industries Department as incentive.
THE TELANGANA WIND POWER
POLICY 2016
• The Wind Policy Cell (WPC) will
undertake single window clearance for all
WPPs. A transaction charge of Rs. 25,000/
MW shall be applicable for processing
applications for single window clearance. The
modalities of the single window clearance
mechanism shall be notified within 30 days
from the date of issue of this policy.
• Wind projects will be encouraged to set
up on private land. All necessary approvals/
clearances must be obtained from concerned
departments/agencies (central/state as
applicable) for setting up of WPP in forest-
land. Government also reserves the right
to allot such land on lease to State/central
PSUs or JVs 7 (where majority stake is that of
- • Intra-state Open Access clearance for the
- SHP
- TSERC regulations amended from time to time.
-
91.45
91.45
Table Source: MoSPI
Government) on nomination basis
• The ceiling limit as per the land
ceiling act will not be
applicable for any land
acquisition for Wind Power
Projects. Land requirement
would be computed based on the
assessment done by TNREDCL
• The wheeling and transmission charges are
exempted for captive/ group captive use within
the state. They will be charged as applicable
for third party sale. The transmission and
distribution losses, however, are fully applicable
for both third party within the state as well as
captive use within the state.
• Banking of 100% of energy shall be permitted
for all Captive and Open Access/ Scheduled
consumers during all 12 months of the year.
Banking charges shall be adjusted in kind @ 2%
of the energy delivered at the point of drawl.
• Electricity duty shall be exempted for captive/
group captive consumption, sale to DISCOMS
and third party sale in respect of all WPPs set
up within the state. Also, Electricity duty will be
waived for the new manufacturing facilities and
ancillaries of the Wind Power Projects
• For WPP located within the state and
selling power to third parties within the
state, 100% exemption shall be provided on
the cross subsidy surcharge as determined
by TSERC for five years from the date of
commissioning of the WPP.
• In respect of WPPs selling power to the
DISCOMS, settlement of energy shall be as
per the PPA executed between the WPP and
the DISCOM
• 100% refund of VAT/SGST for all the inputs
required for wind power projects will be
provided by the Commercial Tax Department
for a period of 5 years.
• Industries Department will provide incentive
in terms of 100% refund of Stamp Duty for land
purchased for setting up wind power project
and/or wind-solar hybrids. Registration charges
are payable as per rules.
tenure of the project will be granted as per
• WPPs being a part of green energy will be
exempted from obtaining any NOC/Consent
for establishment under pollution control laws
from Telangana Pollution Control board.
Content Source:TNREDCL
UTTAR
PRADESH
State Nodal Agency:
Uttar Pradesh New
and Renewable Energy
Development Agency (UPNEDA)
Policy Highlights
Solar Power Policy 2013
• The grid connectivity and associated
evacuation facilities from the solar
power plant substation/switchyard
to distribution/transmission system
“feed in substation” will be provided in
accordance with UPERC Regulations
2010 as amended from time to time.
• Nodal Agency will act as single window
clearance for Solar Power Projects.
• Identification of suitable locations and
creation of land bank. Facilitation for
allotment of suitable land/space in control
of State Government or its agencies.
• For PPAs signed as a result of competitive
bidding for a period of 12 years, difference
in the weighted average of levellised tariff
arrived at by UPPCL for purchase of
conventional power in latest bidding and the
tariff approved of solar power
through this bidding shall be
borne by the State
Government.
Uttar
Pradesh
Rooftop Solar
Photovoltaic SOLAR
Power Plants 22,830
Policy, 2014 MW
• The Nodal Agency
shall also support the
distribution licensee
in developing the
protocols and procedures for metering,
grid connectivity, and power purchase
agreements etc. for easy adoption of solar
power plants by the stakeholders.
• To promote deployment of
rooftop solar photovoltaic plants
for captive/self-consumption
Installed Capacity of Renewable Power as on 31.3.2015 in MW
Biomass Power
Waste to Energy
Wind Power
Small Hydro Power
Solar Power
Total
on the offices of the government
organisations/ State government owned
or aided institutions.
• To facilitate in availing Government
of India subsidy, if available for
implementation of such plants, to
both Public and Private Institutions /
organisations.
• To facilitate the public institutions in
identifying the feasible sites/roofs for
deployment of rooftop solar photovoltaic
power plants.
Wind Energy Policy 2015
• Land use permission by the Government
will be given to the developer for 30 years or
period of project whichever is earlier. The
government land required for such project
shall be allotted to the selected developer on
foot print basis as per MNRE guide lines.
• UPNEDA shall act as coordinator for
single window clearance system.
• State Government or its
nominated agency shall have
the first right to purchase
electrical energy generated
BIOMASS
1,617
MW
Wind
1,260
MW
461
MW
renewable energy
888.50
5.00
-
25.10
140
1,058.60
Table Source-MoSPI
by the wind energy projects at the rate
determined by SERC. In the case of
non-purchase of the power by the State
Government or its nominated agency,
developer will be at liberty to sell the
power to a third party.
• PPA shall be executed with UPPCL/
State DISCOMs for period of 30 years.
UPPCL or its DISCOMS shall under
take to transmit the power generated by
the prospective developers and make it
available to him for captive use or to the
third party nominated by him(developer),
at the charge determined by the
Uttar Pradesh Electricity Regulatory
Commission (UPERC) irrespective of the
distance from the generating station.
Mini Grid Policy Uttar
Pradesh 2016
• The Land will be arranged by the
Developers for the sanctioned Projects.
• UPNEDA will act as the Nodal Agency
for Single window clearance for all Mini
Grid 6 7 Projects which include the task
related to issuance and facilitation of desired
Government orders, necessary sanctions/
permissions, clearances, approvals, consent
etc. in a time bound manner.
• The energy generated from the plant will be
received in the grid by DISCOM
at the tariff decided by
Uttar Pradesh Electricity
Regulatory Commission/
tariff decided on mutual
consent.
• Distribution
of energy by the
developer will not be
restricted in case of Self
identified projects.
Content Source: UPNEDA
May 2016 | Energy Next | 65
 State Policies renewable energy

UTTARAKHAND SOLAR West Bengal Installed Capacity of Renewable Power as on 31.3.2015 in MW

Biomass Power 26.00
16,800 Waste to Energy -
SHP
State Nodal Agency: permission MW 1,708 State Nodal Agency: Wind Power -
Uttarakhand Renewable Energy for Govt land, if West Bengal Renewable
MW Small Hydro Power 98.50
Development Agency (UREDA) available, to the BIOMASS Energy Development Agency
Solar Power 24 (WBREDA) Solar Power 7.21
Policy Highlights Developer shall MW Total 131.71
Uttarakhand Solar Power be 2.5 Hectare Policy Highlights Table Source:MoSPI
Policy 2013 per MW. Wind West Bengal Policy on Co-
• This Policy will be applicable to all Solar • The wheeling charges will be 534 generation and Generation governed by the Power Purchase Agreement • The host and obligated distribution utilities
Photovoltaic and Solar Thermal Power applicable as decided by UERC from time MW of Electricity from executed between the power producer and shall provide revolving Letter of Credit from
Projects. to time. Renewable Sources of the obligated procuring entity through a nationalized bank as a payment security
• The minimum capacity allocation to each • UREDA shall be the nodal agency and Energy, 2012 competitive bidding and as per Regulations of mechanism for all RE projects.
Solar Power Developer will be at 100KW and Govt of Uttarakhand shall act as facilitator for • Any person generating electricity from the Commission. • Exemption of demand cut to the extent
the maximum capacity allocation will be at implementation of the Policy. co-generation or renewable sources can opt for • The interested developer shall execute of 50% of the installed capacity assigned for
50 MW. prefeasibility studies in a time bound manner. captive use purpose will be allowed subject to
• GoUK will promote setting up of Solar Policy on Hydropower • The projects shall be offered for a period the Regulations of the Commission.
Power Projects for direct sale of electricity to Development (25 MW to of forty five (45) years from the date of the Content Source: WBREDA
DISCOM of Uttarakhand (UPCL). 100 MW) award at the end of which they shall revert to
• The Government land (if available) shall • All Hydropower projects/stations estimated the Government of Uttarakhand or extended
further on mutually agreed terms, as per the
decision of the Government of Uttarakhand.
• The IPP can contract to sell power to
any consumer/s outside Uttarakhand, to
the Uttarakhand Power Corporation Ltd.
(UPCL), or for the captive use of new
industrial consumers in Uttarakhand.

Policy for Harnessing

Renewable Energy Sources
in Uttarakhand with SHP
Private Sector/Community 396
articipation MW
• Uttarakhand State Government will be
inviting open bids for development of small
hydro projects (above 2.00 MW) under PPP
(Public Private Partnership) mode. open access, subject to availability of adequate an implementation agreement with the
be provided to the project developer on long to have an installed capacity of 25 MW and • For the purpose of this policy IPP transmission facility to any transmission Government of West Bengal and submit a
term lease of 30 years. larger shall be eligible under this policy. is defined as SHP setup by any person licensee’s system within the State on payment corporate bank guarantee of a requisite
• For setting up of Solar Power Plant on • The Uttarakhand Jal Vidyut Nigam Ltd. as defined in EA 2003 for generating of various charges as specified. amount linked to the capital cost SOLAR
different technology, maximum land use (UJVNL) will undertake to prepare the electricity, and the electricity generated • Open access charges shall be payable of the project. The 6,260
can be sold to any consumer located in according to the Open Access Regulations, specific quantum of MW
Installed Capacity of Renewable Power as on 31.3.2015 in MW the state of Uttarakhand or any other Tariff Regulations and Co-generation & bank guarantee shall
willing distribution licensee or any Power Renewable Sources Regulations of the be specified in the bid
Biomass Power 30.00
Trading Company. Commission. documents.
Waste to Energy - • To empower and strengthen Panchayat • For power purchase from projects located • All transactions between the West
WASTE Wind
TO ENERGY
Wind Power - Raj Institutions (PRI), the Local Bodies of outside the State, the landed cost of the RE Bengal State Electricity Transmission
22
BIOMASS 148 MW
Small Hydro Power 209.33 the State Government will be encouraged power on account of open access transaction Company Limited/Distribution Licensee
to avail the financial support of the at the State boundary cannot be more than the and the developer involving wheeling or
396
Solar Power 5 MW
MNES for establishing small hydro power WBERC price cap, as approved. sale of power will be settled on a monthly
Total 244.33
projects. • The sale of electricity by the power producer basis as per the Power Purchase Agreement and
Table Source: MoSPI Content Source: UREDA to the energy supply company shall be Transmission Service Agreement executed.

66 | Energy Next | May 2016 May 2016 | Energy Next | 67

 State Policies renewable energy
SHP
110
MW
SOLAR SHP
4,560 SOLAR 230 BIOMASS
HARYANA MW
MEGHALAYA 5,860
MW
MW 11
MW

Wind
82
State Nodal Agency: incentives such as industrial status, electricity BIOMASS State Nodal Agency: MW
Haryana Renewable Energy duty exemption, banking facility, cross-subsidy 1,333 Meghalaya Non-Conventional
Wind MW
Development Agency (HAREDA) charges, etc have been provided in the policy. 93 and Rural Energy Development small hydro plants, biomass combustion, from Non-Conventional Energy Sources.
• To promote small investors by reserving MW Agency (MNREDA) biomass co-generation, waste recycling etc. will • The DISCOM will purchase electricity
Policy Highlights 20 per cent of the target for the projects of be “Eligible Producers” under the scheme. offered by the developer as per the tariff fixed
Haryana Solar Power Policy capacity of 1-2 Mw. For these projects, a price Policy Highlights • It shall not be necessary for such power by the SERC on mutually accepted terms and
2016 preference of two per cent will be given to Policy for promoting producers to sell the electricity generated to conditions.
• To give boost to the solar energy sector, those who set up their plants within Haryana. generation of Power DISCOM or its successor company. • Consumption of electricity generated
through Non-conventional • There shall be no restriction on the legal by eligible producer for its captive use or
Installed Capacity of Renewable Power as on 31.03.2015 in MW
• Sale of power to the Haryana government or Energy sources form of power producing entrepreneur. upon sale to a nominated third party will be
Biomass Power 52.30 to the third party is permitted without levying • All power producers generating grid-grade Companies, cooperative, partnership exempted from electricity duty for a period
Waste to Energy - any charges under the policy. electricity from Non-Conventional Energy individuals etc. would all be eligible producers of 5 years.
Wind Power - • Employment generation and skill up Sources such as solar, wind electric generators, provided they undertake to generate electricity • “Eligible Producer” will be eligible for
gradation of the youth. Sales Tax/VAT deferment/ remission under
Small Hydro Power 73.50
• The policy encourages setting up of solar Installed Capacity of Renewable Power as on 31.03.2015 in MW the provision of schemes notified in this
Solar Power 12.8 parks and installation of solar power plants on respect by Finance Department as modified
Biomass Power -
Total 138.60 canals tops and banks. from time to time.
Waste to Energy -
Table Source: MoSPI Content Source: HAREDA • MNREDA shall also facilitate grant of
Wind Power - loans and subsidies.
Small Hydro Power 31.03 • MNREDA/ State govt will provide
clearance within a period of 2 months from
Jharkhand WIND
Solar Power
Total
-
31.03
the date of submission of application.
Content Source: MNREDA
SOLAR 91 Table Source: MoSPI
18,180 MW The figures shown in the maps depict the renewable energy potential of the states. Source: MNRE
State Nodal Agency: MW plants. The Nodal Agency shall
Jharkhand Renewable Energy facilitate and provide clearances and
Development Agency (JREDA) approvals from concerned departments.
• The modalities for operating the single
Union Territories
Policy Highlights SHP window clearance mechanism shall be
Jharkhand State Solar 209 BIOMASS developed within 30 days from the date of JOINT ELECTRICITY • The billing will be with one of the two parties
MW
Power Policy 2015 90 issue of this policy. REGULATORY COMMISSION that is decided and informed to the Distribution
MW
• Power Purchase agreement (PPA) shall • Electricity duty shall be exempted for FOR THE STATE OF GOA AND Licensee as a party authorized to bill.
be done between the state Discoms and the 10 years from date of commissioning UNION TERRITORIES (GRID • These Regulations shall remain in force
successful bidder for a period of 25 years. provided the source of power is from Solar CONNECTED SOLAR POWER for 3 (three years) unless reviewed /revised
• The state government under this Power Projects setup within the State. REGULATIONS) - 2015 earlier or extended by the Commission.
policy will help facilitate in building • The state shall promote development of • Power Purchase agreement (PPA) is
up the necessary infrastructure like solar park on non-productive govt land Policy Highlights signed between the Solar Project Developer the Solar Power produced and fed to the
power evacuation, infrastructure, water or any other land falling within the area • In line with section 62 read with section and the Distribution Licensee mandated to Grid for sale to the Distribution Licensee
requirements and internal roads. of solar park. 86 of the Act, these Regulations shall be buy the Solar Power; and shall be billed accordingly.
• State Government shall attract private Content Source: JREDA applicable to the grid connected solar PV, • The Producer of Solar Power shall • Net metering will be applicable to Solar
investments for installation of solar and solar thermal projects. arrange for themselves a meter to register Power generators having an electrical
Installed Capacity of Renewable Power as on 31.03.2015 in MW Installed Capacity of Renewable Power as on 31.03.2015 in MW service connection for all consumer
categories of the Distribution Licensee
Biomass Power - Biomass Power -
• The quantum of electricity purchased
Waste to Energy - Waste to Energy - by the Distribution Licensee of the
Wind Power - Wind Power - respective distribution licensee area
Small Hydro Power 4.05 Small Hydro Power 5.30 under the Commission’s jurisdiction shall
get computed towards the Solar RPOs for
Solar Power 16 Solar Power 9.88
the Solar Power purchased
Total 20.05 Total 15.2
Content Source: CREST
Table Source: MoSPI Table Source: MoSPI

68 | Energy Next | May 2016 May 2016 | Energy Next | 69

 MNRE NEWS
Percentage of renewable energy
in total power generation
A s per information received from the
Central Electricity Authority, the
percentage share of renewable energy in
the total power generation has consistently
increased from 4.97% in 2012-13 to about
5.7%, as on February, 2016. This was stated by
Piyush Goyal, Minister of State (IC) for Power,
Coal & New and Renewable Energy in a
written reply to a question in the Rajya Sabha.
The Minister further stated that the
Government has recently approved
amendments in Tariff Policy in January,
2016 which envisages long term trajectory
of RPO prescribing purchase of solar energy
to promote the renewable energy, from the
date of notification of the policy, which
Solar power plants on waste land
T he Government is encouraging use
of waste land for installation of solar
power plants. Setting up of solar parks is
a step in that direction. This was stated
70 | Energy Next | May 2016
shall be such that it reaches up to 8% of the
total electricity consumption or as notified
excluding hydro power by March 2022.
The Minister also stated the Government is
implementing ‘Green Energy Corridor Project’
for strengthening intra-state and inter-state
transmission system along with other control
infrastructure for the likely renewable power
capacity addition to facilitate integration of
large scale renewable energy generation, in
the renewable rich states of Andhra Pradesh,
Gujarat, Himachal Pradesh, Karnataka,
Maharashtra, Rajasthan, Tamil Nadu, Jammu
& Kashmir and Madhya Pradesh. The funding
pattern for creating intra-state transmission
infrastructure is approved as share of KfW
loan (40% of the cost) and grants from
National Clean Energy Fund (40% of the cost)
and the remaining 20% as state contribution.
The Inter-State Transmission Projects are
proposed to be funded with 70% KfW loan
and 30% equity by Power Grid Corporation
of India Limited (PGCIL). The setting up
of Renewable Energy Management Systems
(REMCs) has to be funded from budgetary
sources, the Minister added.
by Piyush Goyal, Minister of State (IC)
for Power, Coal & New and Renewable
Energy in a written reply to a question in
the Rajya Sabha.
The Minister further stated that a
solar capacity of 20,000 MW has been
targeted under the existing solar park
scheme, which includes use of waste land
also. Total target for gird connected solar
power plants is 60,000 MW by 2022. The
Government is monitoring the scheme
in close coordination with States and
other stakeholders so as to complete the
projects in time for which various fiscal
and promotional incentives e.g. capital
subsidy, generation based incentive,
accelerated depreciation, viability gap
funding (VGF), concessional excise and
custom duties are provided to project
developers, the Minister added.
India will surely
achieve 10,500 MW
solar power: Goyal
I ndia has set an ambitious target of
adding 100,000 MW of solar power
generation capacity by 2022 which is
five times more than the earlier target
of 20,000 MW under National Solar
Mission.
India will definitely achieve the
target for enhancing solar power
capacity and add 10,500 MW in the
current fiscal, said Minister of State
(IC) for Power, Coal & New and
Renewable Energy Piyush Goyal.
“The way things are progressing in solar
energy sector. We will definitely achieve
our target. Solar energy is economically
viable,” Goyal said at an event.
Consulting firm Bridge to India
said in its latest edition of India Solar
Handbook report that “India is poised to
become the fourth largest solar market
in 2016, leaving behind three major
European solar markets (UK, Germany
and France) with expected new capacity
addition of 5.4 GW in 2016.”
The Minister added, “A target of
adding 10,500 MW solar power has
been set for this fiscal. It is four to five
time more than last year (target of 2,000
MW). For achieving this target, we have
already floated tenders for 21,000 MW
solar power projects during last fiscal.
With 21,000 MW of new solar projects
out in the market, India has signalled to
the world that we’re ready to lead.”
The Minister also said that India
has exceeded solar targets by 116 per
cent this year in comparison to last
year and already had awarded solar
projects of 11,000 MW.
 Green Success
Germany inspires energy
transition worldwide
Long term targets with reliable policies and regulatory frameworks created security,
reduced costs of finance and attracted private sector investment in this remarkable
transformation of energy systems all over the world, writes Tobias Winter.
than only one pioneer in this world.
Germany together with USA, India,
China, Denmark and Japan but also
Brazil, Sweden and recently Norway in
regards to its mobility transition, were
the main drivers of this global energy
transition so far. Long term targets
with reliable policies and regulatory
frameworks created security, reduced
costs of finance and attracted private
sector investment in this remarkable
transformation of energy systems all
T
over the world. So far the Energiewende
he Energiewende, the energy has demonstrated that a sustainable and
transition from a fossil fuel economically viable energy transition
and nuclear powered society is possible. New technologies became
towards sustainable forms of new sources of growth and employment,
generation and consumption of energy reduced dependency on energy imports
is a German success story but has more and carbon emissions.
72 | Energy Next | May 2016
ll The Global Energy
Transition
The Global Trends in Renewable Energy
Investment 2016 revealing data from
Bloomberg New Energy Finance, published
with the support of the Government of
Germany, clearly points out impressing
facts about the worldwide achievements.
In 2015 global investment in renewable
energy assets reached a new record. The
total investments in power plants above
1 MW excluding large hydro-electric
projects (above 50 MW) rose 5 % to US$
28,590 crore. India saw its commitments
rise again 22 % to US$ 1,020 crore in
2015. Worldwide more renewable energy
capacity has been added in 2015, even
excluding large hydro, than all other
fossil or nuclear capacities put together.
This marks a milestone in world’s history,
as it is the first time new investment in
renewable energy capacities represents the
majority (53.6 %) of all capacity added.
In 2015, the main technologies for
generation of electricity invested globally,
were solar photovoltaics and wind energy
as they became mature technologies.
The amount of money invested in solar
energy assets still shows growth rates of
12 %. Investment in wind energy reached
9 % growth in 2015. Investment in other
technologies as biomass, biofuels or
geothermal declined strongly. Most of the
investment already is seen in emerging
and developing countries, as energy
consumption is faster growing and natural
resources as sun or wind are often more
dominant.While ground mounted PV
power plants on feed-in tariffs and PPA
basis are the main drivers for ongoing
PV development, self-consumption is
becoming more important in rooftop PV
installations. The figure “New renewable
energy asset finance”shows the investments
made in power plants with a capacity
above 2 MW differentiated by sector also
including small scale solar below 2 MW.
Solar and Wind can be clearly pointed
out as the main drivers with investment
growth rates of 12 % and 9 %.
Economies of scale, technology
improvement and reduced cost of
financing still result in price declines for
both technologies. As renewable become
more cost efficient, the actual growth
rates in capacity are still a lot higher
than growth rates of invested money
Investment in new power
capacity in between 2008 –
2015 (in US$ hundred crore)
Source: Bloomberg New Energy Finance
With 15.2 GW of photovoltaics added
in one year China now has beaten
record holder Germany (2015: 39.7 GW)
with a total of 43.5 GW photovoltaics
installed. China and Japan together
account for about 50 % of all total PV
capacity added in 2015
volumes. As per the last “Renewable
Capacity Statistics” from the International
Renewable Energy Agency (IRENA),152
GW have been added globally in 2015.
This results in a record 8.3 % growth of
renewable energy capacity in 2015. Out
of this 152 GW, 110 GW came from PV
and wind energy only. A total of 1,985
GW renewable energy capacity is installed
so far, including around 12 GW offshore
wind capacity worldwide. As per the
International Energy Agency (IEA) and
the “World Energy Outlook” of one of the
major petroleum companies in the world,
this renewable energy capacity running
is now generating at least 10 % of world’s
electricity consumption already. Last
year’s drivers for worldwide investment
in renewable energy capacity were China,
USA, Japan, England stepping stronger
into Renewables, India, Germany and
Brazil followed by South Africa, Mexico
and Chile. Other countries like France
since COP21 in Paris or Russia now show
a stronger will to also become part of
worldwide energy transition.
New renewable energy
asset finance (in US$
hundred crore)
Source: UNEP, Bloomberg New Energy Finance
Clean Transition
As per IRENA 47 GW of solar
photovoltaics have been added globally,
summing up 222 GW PV by the end
of 2015. This means impressive 27 %
growth of capacity in PV. The recently
published data from IEA “Snapshot
of global photovoltaic markets 2015”
confirms this amazing growth rate having
also calculated a 25 % growth of capacity
worldwide. Within the top 10 countries
for photovoltaic capacities added last year,
there are 5 Asia-Pacific countries (China,
Japan, India, Korea and Australia). With
15.2 GW of photovoltaics added in one
year China now has beaten record holder
Germany (2015: 39.7 GW) with a total of
43.5 GW photovoltaics installed. China
and Japan together account for about 50
% of all total PV capacity added in 2015.
Together with its investments in other
renewable energy sources, China was the
first country ever, who invested more
than 10,000 crore US$ in renewables in a
single year.
While in many developed countries
PV and wind energy enter into direct
Top 10 investing countries
in renewable power (in US$
hundred crore)
Source: UNEP, Bloomberg New Energy Finance
May 2016 | Energy Next | 73
 Green Success Clean Transition

competition with existing power plants, Top 10 global capacities of

the situation in most emerging countries Recently published data from wind energy by 2015 (in GW)
Total Capacity
is different. With its fast growing need for
electricity, here PV becomes an additional
Bloomberg New Energy Finance Country
capacity added in 2015

source of required supply which is able to shows an annual growth rate of 60 China
USA
145.4
74.5
33.6
17.2
compete with prices for most new fossil
and nuclear sources of energy worldwide.
% for sales of pure electric vehicles Germany
India
44.9
25.1
10.4
5.8
Asian countries as well as the US and worldwide. In some countries more Spain
UK
23.0
13.6
5.3
3.1
Canada will clearly continue to count
on solar PV development. In European
than 20 % of newly registered cars are Canada 11.2 2.6
France 10.4 2.4
countries as Germany, where governments already electric Italy 9.0 2.1
are pushing the former financially Brazil 8.7 2.0
supported market to a more competitive renewable and sustainable energy sources. (GWEC) projects in its “Global Wind Rest of
67.2 15.5
PV market, the market continues to grow It almost doubled its countrywide PV Report 2015” that wind power capacity World
but at lower growth rates. In its extreme capacity installed in the financial year will almost double by 2020. New markets Total
365.8 84.5
Top 10
there is even fully deregulated energy 2015-16 with now around 7 GW of PV are seen in Africa, Latin America and Asia World Total 432.9 100.0
markets as in the Netherlands, where installed. With about 3.3 GW of new wind with China and India in the lead. The Source: GWEC
people can already buy their electricity capacity added in 2015-16 summing up Philippines, Indonesia, Vietnam, Pakistan
right from their neighbour through an almost 27 GW of total wind capacity, and Mongolia are following. hydro and biogas still used as baseload and through conversion of baseload plants into and PV. In parallel Germany is working
Airbnb-style website for renewable power. India surpassed Spain and moved to conventional power plants to be forced to fully flexible backup power producers and to reach a reduction of greenhouse gas
Nevertheless, some countries as Spain position 4 in the list of the top 10 players ll The Energy Transition cycle down part of their generation at peak further renewable energy sources. emissions by 40 % until 2020 in regards
and Italy, who had made retroactive in the global wind market. Worldwide in Germany time to get closer to the demand curve It is the result of Germany’s reliable to its emissions in 1990 and aims to
changes in the PV support policies for India was the fifth largest market for wind Germany, a country with 820 lakh illustrated in red colour. energy policy built on three pillars: achieve minimum 80 to 95 % of emission
existing plants, destroyed the confidence energy last year with another 33 GW to inhabitants, counts 37 lakhs of solar PV The share of gross electricity l Energy security at economically viable costs reduction by 2050 together with all other
of investors. It will take time to bring the be installed in the upcoming 6 years in and solar thermal plants with the major consumption provided by 41 GW wind l Promotion of new jobs member countries of the European Union.
grid connected PV market up again while order to achieve the renewable power extent owned by farmers, SMEs, private capacity, 40 GW PV, 4 GW biogas and l Protection of the environment and By the development of renewable energy
self-consumption stays an important target of 60 GW wind capacity in total by households and hundreds of cooperatives other renewable energy sources already natural resources. markets it also brings down Europe’s
and growing driver in those countries. March 2022. At the end of 2015, the world formed by citizens. They are the true increased, to 32.6 % of total electricity Long-term, energy and climate targets dependence on foreign oil and gas,
In any case, since COP21 in Paris, there leaders in terms of installed capacity once owners of the Energiewende. With 491 consumption. In 2015 renewables count based on public acceptance drive the hopefully resulting in more geopolitical
is no doubt that many more countries again were China, USA, Germany, India Watts capacity of PV per capita, which for 13 % of Germany’s total primary energy market. An increase share of renewable peace in the world. Until 2030 renewables
will push the PV market to reach their and Spain. China added 30.8 GW of new equals to 2 bigsolar panels per citizen or consumption, almost twice as much as the energies coupled with energy efficiency shall cover 27 % of Europe’s total primary
individual INDCs at reasonable costs. As capacity and surpassed the EU with 145 3 square meter of solar panels per person, energy provided by nuclear power plants measures is clearly seen as the answer to the energy consumption. Germany wants
per the International Energy Agency,the GW wind capacity installed in total by Germany definitely is handling the highest (7.5 %). Around 350.000 new jobs have three requirements. to achieve 60 % renewables for its total
worldwide PV market will clearly the end of 2015. Germany installed about penetration of solar energy worldwide. been created so far, two times more jobs In addition, because of the risks, its energy consumption in heat, cooling,
continue its upward trend in the coming 6 GW including 2 GW of far out offshore In 2015, around 7 % of Germany’s total than people working in coal mining and the costs and the unsolved waste problem, transportation and electricity and
years. Having set a clear target of 100 GW wind, to avoid optical pollution. As per electricity consumption already came from conventional fuel sector with Germany’s on 6 August 2011, German Parliament minimum 80 % electricity from renewables
photovoltaic power capacity by March GWEC, large wind turbines are now photovoltaics only. Almost 40 GW of PV GDP and economy continuously rising. decided the exit out of nuclear power, by 2050. Primary energy consumption
2022, India takes strong part of this present in more than 80 countries. capacity has been installed so far. Being a Some jobs are certainly disappearing as shutting down year by year all 17 nuclear compared to 2008 has to come down by
worldwide shift towards the use of clean, Additional 63 GW of new wind country with around half of New Delhi’s baseload power plants are disappearing power plants by 2022. The capacity of 20 % in 2020 and down to 50 % energy
power capacities connected to the grid sunshine and 9 times less the area size of altogether. Those no more required jobs today’s remaining 20 GW is replaced savings by 2050. The share of renewables
Top 10 countries for PV in 2015 sum up to 433 GW of wind in India, one can predict which important are over compensated by jobs created mainly by offshore wind, onshore wind in cooling and heating already reached
capacity installed in
2015 (in GW) total, worldwide. Wind became a mature role PV will play in all over India and 13.2 % with minimum 14 % to be reached
Power generation and consumption during a day in 2015
source of energy supply, but, as per other sunshine states in the world. until the end of 2020.
Total Capacity
Country IEA, appropriate regulatory frameworks Germany already experienced several days So far Germany’s energy
capacity added in 2015
China 43.5 +15.2 are still required in many countries. If with hours, where more than 80 % of its transition mainly was the story of
Germany 39.7 +1.5 the new low record price for wind in entire electricity demand was covered by the Renewable Energy SourcesAct
Japan 34.4 +11.0 Morocco at 2INR/kWh is sustainable and renewable energy sources and which could (ErneuerbareEnergienGesetz, EEG). The
USA 25.6 +7.3 wind farms will be built at this price, it properly be handled by the grid, even in EEG sets the legal framework to promote
Italy 18.9 +0.3
has to be proven in 2016. But with 17 % times of solar eclipses. The installed solar renewable energies, but does not subsidise
UK 8.8 +8.8
market growth and COP 21 requiring a PV capacity covers already more than the generation costs with money from
India* 6.8 +3.0
France 6.6 +0.9 completely decarbonized power system half of the peak power demand during taxes. On the contrary, it generated huge
Spain 5.4 +0.1 by 2060, the global wind market should summer. The graph“Power generation and tax revenues for the German government
Australia 5.1 +0.9 receive its political backing for continuous consumption” shows a day with high solar so far. In simple words, the core part of
Source: Agora Energiewende
Source: IEA PVPS, IRENA, MNRE, *at 31.03.2016 growth. The Global Wind Energy Council and wind penetration, with mainly small the EEG works as follows: DISCOMs are

74 | Energy Next | May 2016 May 2016 | Energy Next | 75

 Green Success
Renewables-based electricity generation in Germany 2015
Source: Federal Ministry for Economic Affairs and Energy
obligated to buy 100 % of grid connected
renewable power from households, farmers,
industries, project developers and others.
The guaranteed price per kWh to be paid
by the DISCOM for the upcoming 20
years, is defined in the EEG itself (feed-in
tariff for different technologies and plant
sizes) which results in a very high level
of investment security. DISCOMS then
give this electricity to the transmission
company who sells it on the spot market
handled by a stock market exchange.
The difference between the price payed
to the renewable energy generator and
the mostly lower revenue achieved at
the stock market is permanently noted
down by each transmission company.
Once a year all transmission companies
then meet and sum up all the amounts of
money noted down. This huge amount of
money calculated is then divided by all
kWh’s sold by the transmission companies
throughout the past year in Germany. The
Final energy supply and demand scenario in
Germany 2005-2050
76 | Energy Next | May 2016
resulting amount of money per kWh is
then communicated to all the DISCOMS
in the country, who all include this same
amount of money as a renewable energy
surcharge in their regular price per kWhto
be paid by the final customer for the next
year. A compensation mechanism assures
that the surcharge money collected by
the DISCOMs is distributed correctly in
between the transmission companies,
having transmission companies who have to
market more renewable power than others.
This way all citizens of Germany pay the
same renewable energy surcharge per kWh
for supporting the growth of renewable
energies. Even though with each adaptation
of the EEG, over the years parliament
brought very much down the feed-in tariffs
as a response to falling technology prices,
the main framework for the support of
renewables was not touched: 1. Preferential
access to the grid for electricity generated
by renewable energy sources and 2.
Source: DLR, Heinrich BöllStiftung
Attractive feed-in tariffs guaranteed for
20 years without any retroactive changes
in the policies for existing plants in order
to maintain the confidence of investors.
This lead into a story of creation of
hundred thousands of new jobs not only
in construction but also in service and
maintenance, as each MW wind or solar PV
usually requires more service labour than
each MW of a fossil fuel power plant.
However, in 2015 Germany decided to
further bring down the costs of renewable
energies market prices and to gain more
control about future capacity development
by introducing competitive calls for tenders
to grant power purchase agreements (PPA)
at least for large-scale PV and wind power.
Feed-in premiums with a variable premium
are supposed to compensate for the
variations of electricity market prices. The
tendering process so far granted PV power
plants PPAs below 6 INR/kWh.Annual
target corridors have so far influence on
premiums to be paid to future power plants.
Premiums for new self-consumption plants
had been eliminated with the last adaption
of the EEGas this market segment grew
even faster than expected.To what extend
Germany will shift from feed-in tariffs to
PPA will be decided until the end of 2016.
But even in Germany, with less solar
irradiance, generation costs of 10 INR
and less per kWh PV are also possible at
small scale residential level and became
an interesting option to the alternative of
feeding the electricity into the grid. People
maximise their level of self-consumption
putting also storage to be able to consume
their home generated electricity also
at night. This is economically viable as
DISCOMs tariffs in Germany are above
18 INR per kWh and the feed-in tariff
payed by the DISCOM lies below this
price. The self - consumption of electricity
is becoming a major driver of distributed
but grid connected PV installations and is
evolving rapidly worldwide. PV producers
become so called “prosumers” which means
they are producers as well as consumers of
energy. So far 32.000 grid connected solar
home systems with storage allowing 60
% autonomy or more have been installed
mainly in private households in Germany.
New trends such as electric vehicles as
Germany, a country with 820 lakh
inhabitants, counts 37 lakhs of solar
PV and solar thermal plants with
the major extent owned by farmers,
SMEs, private households and
hundreds of cooperatives formed by
citizens. They are the true owners of
the Energiewende.
additional storage capacity, giving back
electricity to the house become more
popular.But even if there is no doubt
that the German Energy Transition - the
so called Energiewende brings many
opportunities, it remains an enormous
challenge. The share of renewables in the
final energy consumption of the German
transport sector reaches hardly 6 % and
needs to be lifted up to around 100 % until
2050. This is one of the major tasks of
Germany’s energy transition and led to the
decision of the Government of Germany
to push the market for electric vehicles
by subsidising cars with 2,000 EUR if the
automobile company is also willing to give
an additional discount of 2,000 EUR. There
is no doubt that a global energy transition
can only succeed with a mobility transition
where e-mobility is playing a crucial role.
Recently published data from Bloomberg
New Energy Finance shows an annual
growth rate of 60 % for sales of pure electric
vehicles worldwide. In some countries
more than 20 % of newly registered cars are
already electric.
Long-term, energy and climate targets set by
German Government
Source: BMUB, Heinrich BöllStiftung “Energy Transition - The German Energiewende”
Clean Transition
ll What’s next? Trends and
business models for India.
State secretary Uwe Beckmeyer from the
Federal Ministry for Economic Affairs and
Energy made clear, that there is no denying the
fact, that necessary energy reforms to continue
the success story of the Energiewendeare facing
us with enormous challenges, but at the same
time offer major opportunities for Germany,
for Europe, for India and the world.
To create new market designs with flexible
electricity systems able to adapt to large shares
of wind and PV is one of the major challenges
worldwide. To increase the flexibility of the
system, grid expansion, flexibility of power
plants, demand response and storage through
pumped storage, power to heat or batteries are
the main areas focused on. Grid integration
requires precise forecasting of renewables and
balancing with hydro or especially pumped
storage, with gas and even coal. With more
renewable energies entering the grid at almost
zero marginal cost, this balancing of other
sources becomes more crucial. Shutting down
PV power plants and wind farms because of
being unable to evacuate its electricity can’t be
an economically viable option. Even though
IEA recently announced, that the time to phase
out fossil fuel subsidies is now, compensation
mechanisms for fossil fuelled power plans will
be still required to make it attractive to adapt
to fluctuating renewables. Cycling on and off
coal and running the plant at lower outputs
even below 40% of capacities is a well-known
technique in countries as Germany and the US.
Experts agree, that the needed modifications
of coal fired power plants, who originally
were only intended to run at baseload, do not
May 2016 | Energy Next | 77
 Green Success | Clean Transition
A global energy transition needs
strong private sector involvement
requiring new policy driven business
models. To discuss and support those
sustainable business models is one
of the most important tasks for the
future work of the Indo-German
Energy Forum Support Office
require heavy hardware modifications to make
them flexible. The main difficulty of the task
is the implementation of intensive training
programmes for the operators to enable them
to really cycle the plant without damaging it.
Demand side balancing through differentiated
tariffs even at residential level, for example
by incentivising to charge electric vehicles
at certain times,can be another important
business model to be implemented for
appropriate balancing.
A global energy transition needs strong
private sector involvement requiring new
policy driven business models. To discuss and
support those sustainable business models is
one of the most important tasks for the future
work of the Indo-German Energy Forum
Support Office. We are sure solar rooftop,
self-consumption, pay per use models in rural
78 | Energy Next | May 2016
areas involving smart metering combined
with mobile payment, new district cooling
technologies, energy efficiency in buildings
and bidirectional smart power grids are
going to be only some of the areas with high
interest from both countries. Cars bringing
back to home electricity in the evening, which
have been charged at a parking lot with solar
car ports at work now powering back the
home at night, is a small but fast growing
trend. First hybrid and fully electric cars with
bidirectional electricity flow from and back to
the house are sold at reasonable prices from
well-known brands in the market. Serving
also as a backup power for the house, electric
cars higher the level of self-consumption of
cheaper electricity from PV stored during the
day and consumed at night. By peak-shaving
through self-consumption it already can be an
economically viable solution for residents with
high electricity consumption.E-mobility and
home storage is only one solution for day and
night balancing, that will be explored more in
detail during the next business and study tour
to Intersolar Europe in Munich, Germany from
the 20th – 26th of June 2016, organized by
different stakeholders with the support of the
Indo-German Energy Forum Support Office
and the National Solar Energy Federation of
India (NSEFI). All readers of Energy Next are
cordially invited to joint this special tour.
About the author: As new Director of
the Indo-German Energy Forum Support
Office, Tobias Winter is supporting the
political dialogue on energy security, energy
efficiency, renewable energies, investments
in energy projects, collaborative research
and development for the upcoming five
years. Mr. Winter was born in East Berlin,
Germany and holds a degree in Business
Administration (RWTH Aachen University).
He has professional experience in renewable
energies and energy efficiency projects and the
corresponding legislation in Germany, India,
Argentina, Uruguay andParaguay. For the
past five years he has been the Director of the
Competence Center in RenewableEnergies for
the German Chambers Network in Argentina,
Paraguay and Uruguay. In 2015 he cameback
to India, the country he fell in love with as
a student at TERI Bangalore. Winter can be
contacted at director@energyforum.in.
IREDA wins SCOPE award
I
ndian Renewable Energy Development
Agency Limited (IREDA), a central
PSU under the Ministry of New and
Renewable Energy, was awarded the “SCOPE
Award for Excellence and Outstanding
Contribution to the Public Sector
Management – Institutional Category III
(Other Profit Making PSEs) 2013-14 by the
Standing Conference of Public Enterprises
(SCOPE), New Delhi.
The award was presented by President
Pranab Mukherjee to K S Popli, Chairman
Ireda celebrates ‘Foundation Day’
T
he Indian Renewable Energy
Development Agency Limited
(IREDA) celebrated its 29th
Foundation Day on 6 April 2016 at the
Air Force Auditorium in New Delhi. The
celebrations began with the lighting of the
traditional lamp by KS Popli, CMD, IREDA.
Speaking on the occasion, Upendra
Tripathy, Secretary, MNRE, said that IREDA
should continue to scale up its operations in
view of the huge renewable energy capacity
Shri K S Popli, CMD, IREDA, Dr. Harvinder Popli, lighting the traditional Lamp at the Cultural Evening function
on the IREDA Foundation Day Celebration along with Sh. S B Nayar, CMD, IIFCL; Sh. Deepak Amitabh, CMD,
PTC India Ltd. and Sh. Ashok Haldia, MD & CEO, PFS.
& Managing Director, IREDA, at function
in Vigyan Bhawan, New Delhi on 11 April.
The award function saw the felicitation of
organisations which work tirelessly towards
India’s sustainable growth.
The award function was also attended
by Minister of Heavy Industries & Public
Enterprises Anant G Geete, Minister of
State (HI&PE) GM Siddeshwara, Ameising
Luikham, Secretary, Department of Public
Enterprises, and other senior officials of
SCOPE.
addition targets of the country and be counted
amongst the leading FIs in the country. He
congratulated the IREDA team for their
successful journey during last 29 years
Addressing the audience, the CMD said
that during the financial year 2015-16, IREDA
had done extremely well and was able to meet
the renewable energy sector’s requirement
for low cost and long term financing and had
scaled up its operations by 60%-70% over the
previous year.
IREDA Corner
IREDA signs pact
with NIWE, NISE
and SSS-NIBE
I
REDA signed MoUs with the National
Institute of Wind Energy, National
Institute of Solar Energy and Sardar
Swaran Singh National Institute of Bio-
Energy (SSS-NIBE) to institute awards in
the fields of wind energy, solar energy and
bio-energy respectively.
IREDA will provide one-time corpus
of Rs 1 Crore for each institute, for
incorporating awards from the interest rate
earned on the same.
The awards will promote innovation,
research & development at the State
and National levels, besides motivating
individuals/companies.
Training for
bankers
T
he Bureau of Energy Efficiency
(BEE) held its third Training
Programme for Scheduled
Commercial Banks on Energy Efficiency
Financing from 27 – 29 April 2016 at
Vijayawada (South Zone). The first training
session was held in Mumbai and the second
was held in Nainital.
Shri K P Philip, Senior Manager,
IREDA, participated in all the three training
programmes as a trainer and shared IREDA’s
experience in financing energy efficiency
projects as well as spearheaded a team to
help modify the training modules.
Golden Peacock
Award for IREDA
I
REDA won the Golden Peacock
Innovative Product/Service Award for
the year 2015. The award ceremony
was held at the 26th World Congress on
Leadership for Business Excellence &
Innovation in Dubai on 19 April. The award
was received by Surender Suyal, Company
Secretary, on behalf of IREDA.
May 2016 | Energy Next | 79
 Corporate Buzz
Tata Power to increase share
s over five farms of RE output to 30-40%
Orange Renewable signs
e
Suzlon tak E projects tum Co rp to invest
R Tata Power has decided to increase the share of
For illion in Ind
ia
solar PPA with SECI to execute its renewable energy output to 30-40 per cent
€20 0-40 0 m
e maker by 2025, up from its earlier target of 20 per cent,
Clean renewable Wind turbin
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energy developer Suzlon E n
into Finnish u
quired five iversification private sector utility has an operational capacity C orp
Orange Renewable has ac
h elp im p lement its d fo rm ed the of 9,156 MW, including 693 MW from hydel, 593 Fortu m
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has entered into companies
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80 | Energy Next | May 2016 May 2016 | Energy Next | 81

 EVENTS

May SONEX 2016 May MIREC WEEK May POWER-GEN

16-19 The SOLAR Near East
Exhibition and Forum
16-20
(SONEX) is the only
specialized event in Near
East Countries (Jordan, Iraq,
Lebanon and Palestine)
covering the regional demand
Amman,
Jordan and need for solar technology
Mexico City
and its wide applications. This
event is organised since 2007
under the patronage of His
Excellency the Minister of
Energy and Mineral Resources.
It is organised in cooperation
with energy and renewable
institutes and organisations.
MIREC Week Congress is
now in its 5th year and is
the annual meeting place
for leaders of the electricity
revolution who are at the
forefront of designing Mexico’s
New Energy System. This is
Hilton
the place where the entire
clean energy industry meets
to do business. The incredibly
detailed, information rich
agenda covers policy, finance,
solar, wind, geothermal, cogen,
small hydro, grids, smart grid,
microgrids, energy storage and
electric vehicles.
18-20 India & Central
Asia 2016
India’s leading Clean Energy
Event is a unique forum
created by the industry for
the industry, covering every
Pragati Maidan,
New Delhi aspect of the power generation
all under one roof. This
grand event will allow one
to interact with over 160+
leading exhibiting companies.
The participants will also have
the chance to see first-hand,
demonstrations and equipment
on show.

http://jordanfairs.com/index.php/ http://www.power-genindia.com/exhibit/
http://mirecweek.com/
buildprojects/ sonex-2016/ benefits-of-visiting.html

May June June

Information
31 event on solar
energy
Under the Made in Germany
Export Initiative of the
German Federal Ministry
for Economic Affairs and
Dusseldorf Energy an information event
on solar energy in India will
take place in Düsseldorf
organized by Eclareon and the
German-Indian Chamber of
Commerce and Industry. In
addition to energy-economic
and political conditions in
India, especially current
funding and financing deals
are the subject of the event.
24th EUBCE
6-9
The European Biomass
Conference and Exhibition
(EUBCE) is a world class annual
event which, since 1980, is held
Amsterdam at different venues throughout
Europe. The EUBCE covers the
entire value chain of biomass to
conduct business, network, and
to present and discuss the latest
developments and innovations,
the vision is to educate the
biomass community and to
accelerate growth.
EU PVSEC 2016
20-24 The largest international
conference for photovoltaic
research, technologies and
applications gathers the global
PV community to conduct
business and discuss the latest
Munich, developments and innovations
Germany in photovoltaics. It is the world
renowned science-to-science,
business-to-business and
science-to-industry platform
with a full and only focus on
the global PV solar sector. The
EU PVSEC thus strengthens
its established leading role in
science and technology among
the players of the global PV
sector.

http://www.eclareon.com/de/ http://www.eubce.com/home.html https://www.photovoltaic-conference.com/

June-July 2016

June Jul
Intersolar Europe Intersolar North
22-24 Intersolar Europe takes place annually at
10-14 America
Messe München. It is the world’s leading Created by solar enthusiasts and
exhibition for the solar industry and its professionals, SOLAR 2016 will present
partners. The exhibition focuses on the areas plenary sessions and forums on the
of photovoltaics, PV production technologies, advancement of renewable energy in the
energy storage systems and renewable US, and what is happening worldwide as
Munich, heating. Since its founding, it has become San Fransisco, a result of the United Nations Conference
Germany the most important industry platform for CA of Parties in December 2015. Sessions for
manufacturers, suppliers, distributors, discussing pre-publication research at the
and partners of the solar industry. The forefront of renewable energy and related
accompanying Intersolar Europe Conference fields will be organised.
consolidates the topics of the exhibition.

https://www.intersolar.de/en/for-visitors/about-
intersolar/intersolar-europe.html https://www.intersolar.us/en/home.html

82 | Energy Next | May 2016

Indo-German
Energy Forum
 building the nation
buildingthenation
with green
green
energy energy
let’sworktogether
let’s work together
fortomorrow
for tomorrow
Pioneer in setting up small hydro power project in himalaya region

Pioneer in setting up small hydro power project in himalaya region

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