The Ministry of New and Renewable Energy (MNRE) has taken several steps to
fructify Prime Minister Shri Narendra Modi's dream of clean energy. The largest
renewable capacity expansion program in the world is being taken up by India.
The government is aiming to increase share of clean energy through massive
thrust in renewables. Core drivers for development and deployment of new and
renewable energy in India have been Energy security, Electricity shortages,
Energy Access, Climate change etc.
A capacity addition of 14.30 GW of renewable energy has been reported during the
last two and half years under Grid Connected Renewable Power, which include 5.8
GW from Solar Power, 7.04 GW from Wind Power, 0.53 from Small Hydro Power and
0.93 from Bio-power. Confident by the growth rate in clean energy sector, the
Government of India in its submission to the United Nations Frame Work
Convention on Climate Change on Intended Nationally Determined Contribution
(INDC) has stated that India will achieve 40% cumulative Electric power capacity
from non-fossil fuel based energy resources by 2030 with the help of transfer of
technology and low cost International Finance including from Green Climate Fund.
As on 31st October, 2016, Solar Energy Projects with an aggregate capacity of
over 8727.62 MW has been installed in the country.
The government is playing
an active role in promoting the adoption of renewable energy resources by
offering various incentives, such as generation-based incentives (GBIs), capital
and interest subsidies, viability gap funding, concessional finance, fiscal
incentives etc. The National Solar Mission aims to promote the development and
use of solar energy for power generation and other uses, with the ultimate
objective of making solar energy compete with fossil-based energy options. The
objective of the National Solar Mission is to reduce the cost of solar power
generation in the country through long-term policy, large scale deployment
goals, aggressive R&D and the domestic production of critical raw materials,
components and products. Renewable energy is becoming increasingly
cost-competitive as compared to fossil fuel-based generation.
In order to achieve the renewable energy target of 175 GW by the year 2022,
the major programs / schemes on implementation of Solar Park, Solar Defense
Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal
Tops, Solar Pump, Solar Rooftop & Floating Solar Plants etc have been launched
during the last two years.
Various policy measures have been initiated and special steps taken in
addition to providing financial support to various schemes being implemented by
the Ministry of New and Renewable Energy (MNRE) for achieving the target of
renewable energy capacity to 175 GW by the year 2022. These include, inter alia,
suitable amendments to the Electricity Act and Tariff Policy for strong
enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable
Generation Obligation (RGO); setting up of exclusive solar parks, development of
power transmission network through Green Energy Corridor project; identification
of large government complexes / buildings for rooftop projects; provision of
roof top solar and 10 percent renewable energy as mandatory under Mission
Statement and Guidelines for development of smart cities; amendments in building
bye-laws for mandatory provision of roof top solar for new construction or
higher Floor Area Ratio; infrastructure status for solar projects; raising tax
free solar bonds; providing long tenor loans; making roof top solar as a part of
housing loan by banks / NHB; incorporating measures in Integrated Power
Development Scheme (IPDS) for encouraging distribution companies and making
net-metering compulsory and raising funds from bilateral and international
donors as also the Green Climate Fund to achieve the target.
ESTIMATED POTENTIAL OF RENEWABLE ENERGY
increased use of indigenous renewable resources is expected to reduce India's
dependence on expensive imported fossil fuels. India has an estimated renewable
energy potential of about 900 GW from commercially exploitable sources viz. Wind
- 102 GW (at 80 meter mast height); Small Hydro - 20 GW; Bio-energy - 25 GW; and
750 GW solar power, assuming 3% wasteland.
The details of year round initiatives and achievements of the Ministry of New
and Renewable Energy are as follows:
Green Power Capacity Addition
A total of 7,518 MW of grid-connected power generation capacity from
renewable energy sources has been added so far this year (April 2016 to March
2017) in the country. A total of 7060 MW of grid-connected power generation
capacity from renewable energy sources like solar (3019 MW) and wind (3423 MW),
Small Hydro Power (218 MW), Bio-Power (400 MW) has been added during 2015-16 in
the country against target of 4,460 MW. During 2016-17, a total 3575 MW capacity
has been added till 31.03.2017, making cumulative achievement 46,327 MW.
Sector-wise highlights of achievements Iin the Solar PV field
- Largest ever wind power capacity addition of 3423 MW in 2015-16
exceeding target by 43%. During 2016-17, a total 1502 MW capacity has been
added till 31.10.2016, making cumulative achievement 28,279 MW. Now, in
terms of wind power installed capacity India is globally placed at 4th
position after China, USA and Germany.
- Biggest ever solar power capacity addition of 3,019 MW in 2015-16
exceeding target by 116%. During 2016-17, a total 1750 MW capacity has been
added till 31.03.2017, making cumulative achievement 9,235.54 MW.
- 31,472 Solar Pumps installed in 2015-16, higher than total number of
pumps installed during last 24 years i.e. since beginning of the program in
1991. So far, 92305 Solar Pump have been installed in the Country as on
- Solar projects of capacity 20,904 MW were tendered in 2015-16. Of these,
11,209 MW capacity already awarded.
Green Energy Corridor
Rs.38,000 crore Green Energy Corridor is being set up to ensure evacuation of
Renewable Energy. Power Grid Corporation of India Limited (PGCIL) has sought a
Loan assistance of US$ 1,000 million from the Asian Development Bank (ADB)
comprising of Sovereign guaranteed loan of US$ 500 million and Non-Sovereign
loan of US$ 500 million. the Loan would be utilized for funding of the following
transmission projects including a project under Green Energy Corridor projects
in next 3-4 years.
Enhancement of Budget
Ministry's budget enhanced from Rs.1500 crore to Rs.9,000 crore (Rs.5,000 crore
gross budgetary support + Rs.4,000 crore in way of bonds to be raised by IREDA)
LOWEST SOLAR TARIFFS
Solar tariffs have fallen to an unprecedented low of Rs. 4.34 / kWh through
reverse auction for one of six projects of 70 MW each to be put up in Rajasthan
under the National Solar Mission. NTPC on 18.01.2016 conducted the reverse
bidding for 420 MW solar power projects However, the tariff had further fallen
to Rs 3 per unit, which was quoted by Amplus Energy Solutions in an auction for
rooftop solar power conducted by Solar Energy Corporation of India (SECI).
Surya Mitra Scheme has been launched for creating 50,000 trained solar
photovoltaic technicians by march 2020. A total number of 5492 Surya Mitra's
have been trained as on 30.09.2016 and more than 3000 are undergoing training. A
network of over 150 Institutions, spread all over the country, have been created
for implementing Surya Mitra scheme.
In addition, short term training programmes for small hydro, entrepreneurship
development, operation & maintenance of solar energy devices and boiler
operations in co-generation plants, have been organized.
About 7800 persons have been trained through these short term training
programmes during the last two years.
Shri Piyush Goyal, then Minister of State (IC) for Power, Coal and New &
Renewable Energy launched “Surya Mitra” mobile App at National Workshop on
Rooftop Solar Power on 07.06.2016. The GPS based mobile app has been developed
by National Institute of Solar Energy (NISE) which is an autonomous institution
of Ministry of New & Renewable Energy (MNRE). The Surya Mitra Mobile App is
currently available in Google play store, which can be downloaded and used
across India. This App is a high end technology platform which can handle
thousands of calls simultaneously and can efficiently monitor all visits of
Suryamitra's. The trained Suryamitra's who opts for entrepreneurship have joined
in the Mobile App in several states. These Suryamitras are once again sensitized
by NISE on soft skills Customer Relations Management, Punctuality and are now
ready to deliver the services.
SOLAR PV MARKET IN INDIA
Solar market too has become highly fragmented both product-wise as well as
number of companies jumping into the Solar bandwagon. Vikram Solar completed 5MW
in Tamilnadu in a record time. Vikram Solar has just completed 50MW in Tamilnadu
in a record time. Vikram is working on the technology where by the DC to AC
conversion can take place module level itself. These module have been
successfully tested and are currently under going burn test at their own setups.
1500 Watt panel, which they say can be used as roof.
Waaree Energies Ltd., a Mumbai based PV Manufacturer has taken huge projects
in Gujarat and have started acquiring smaller solar companies having strong
Swelect Energy Systems Ltd, formerly Numeric Power Systems Ltd, a BSE listed
company sold of its UPS Business Unit for over 850 crores to concentrate on
Renewable Energy, space. In just a few months the company has set up and
commissioned two solar Power Plants and a Wind Power Plant and has over 2000
rooftop installations to its credit. The company has acquired HHV Solar, a
reputed SPV Panel manufacturer and has invested heavily on increasing the plant
capacity from 35Mw to 100Mw.
Emmvee another panel manufacturer is planning for Solar cell manufacturing of
500Mw, Module expansion plan of 1000 Mw & project development and EPC
implementation by 1000 Mw by 2019.
Innovative Solar is in the process expansion as it has come up with 300 Watt
modules which are very sturdy and have very high yield these modules come up
with IEC certifications
Softdisk by its conservatives estimates, believes that
40 GW opportunity till 2020 is the most likely scenario. The Indian solar market
is a key future growth market for PV.
India's installed capacity as of quarter ending 31st March 2017 was 9.23 GW,
which is still negligible as compared to more mature markets such as Germany.
However, the first two quarters of 2017 alone have seen additions of 643.57 MW
to Indian PV installed capacity, more projects are under completion.
According to Softdisk report in Solar PV Power
Generation, Tamilnadu as on 31st March 2016, with a total installed capacity of
1590.97 MW has become the state with largest installed capacity.
There are also external factors in India challenging its solar industry, namely
high inflation and consequently high interest rates, slowdown in GDP growth, a
several depreciated rupee and relentless corruption scandals of the previous
Govt. Low bids with high interest rates in the range of 13 to 15 per cent make
it challenging to borrow in India. Most Indian Banks look at these projects as
risky and look into it only after land acquisition and registration & PPA.
Statutory approval are completed & the number of successfully executed quality
project that can last 25 years.
Softdisk believes that the Govt. & regulators must :
- Develop renewable Energy Laws mandatory.
- Set-up standards for renewable energy.
- Conducting resource assessments.
- Supporting research and development activities thru investments.
- Early timing of policy announcements and ease of implementation.
- Addressing concerns relating to enforce-ability of PPAs.
- Banks to brought in loop for financing Solar projects with renewable
energy purchase obligation.
changes will allow make in India a Roaring Tiger.
The coming year will see some movement and interest by market players to
explore new business models/segments within the solar industry in India.
Further, the falling cost of solar will lead to new projects in the captive
commercial space as solar tariffs become competitive with commercial and
industrial grid prices in various parts of the country.
The rating does not include major EPC players such
as BHEL, ADANI SOLAR, WELSPUN, BEL, CEL, TATA Solar, BOSCH, Solar
Semi-conductor & Moser Baer India Limited, LANCO, L&T, INDO SOLAR, Reliance
Power, Mahindra Power, Wipro-ECO which have diversified interest etc.