India set to cross 100GW renewable energy capacity mark in 2020
India is all set to cross the 100GW renewable energy capacity mark in 2020 and can make rapid strides towards the ambitious 175GW clean energy target by 2022 provided the government keeps a close eye on key issues and deals with those well in time.
India’s installed renewable energy generation capacity touched around 86GW by November-end. This includes solar, wind, small hydro, biomass, waste to energy and others.
Around 30GW renewable capacity including 18GW solar and 10GW wind energy is under implementation. Besides, around 40 GW including 36GW solar and 3.4GW wind energy, is being tendered.
The government is taking some steps to encourage the expansion of the Solar industry:
Earlier this year, several new programs such as PM-KUSUM, solar rooftop phase-2, development of Ultra Mega Renewable Energy Power Parks (UMREPPs) etc have been introduced to promote renewable energy sector in India.
In order to give relief to power generation companies (gencos), the Centre enforced a payment security mechanism from August 1. Under this mechanism, discoms are required to open letters of credit for getting power supply.
The government has also taken other steps like forming Dispute Resolution Committee to resolve contractual disputes in time bound manner and reduce the number of litigations.
It has also made amendments in Standard Bidding Guidelines to broaden the definition of Force Majeure and increase of ceiling tariff has also supported the smooth deployment of solar projects.
It has also launched the SARAL platform to asses and rank the readiness of states for the rooftop segment helping investors to identify investment opportunities and states which need to be brought at par with others.
The industry is hopeful that in coming years, the GST rate would be brought down to 5 per cent, ceiling tariff increased and most importantly the E-reverse auction done away with and closed bidding process brought in again. Also, lenders will be encouraged to finance renewable energy projects.
Original source: https://economictimes.indiatimes.com/industry/energy/power/india-set-to-cross-100gw-renewable-energy-capacity-mark-in-2020/articleshow/72977561.cms
