January , 2022
Union government strengthening renewable energy sources for a sustainable economy
23:45 pm

B.E. Bureau

The Indian government has been trying to strengthen the renewable energy segment in the country. Since the - Conference of the Parties (COPs) in Glasgow, issues related to climate change have been a global priority. COP26 – Government's mission towards 'Net Zero' The Indian government has made some ambitious commitments towards the mission against climate change and has aimed to boost renewable energy. In the global brainstorming on climate change, India presented its five nectar elements - ‘Panchamrit’. India will take its non-fossil energy capacity to 500 GW by 2030. The country will meet 50% of its energy requirements from renewable energy by 2030. The country is also set to reduce the total projected carbon emissions by one billion tonnes from now till 2030. By 2030, India is expected to reduce the carbon intensity of its economy by more than 45%. The Union government has also promised that, by the year 2070, India will achieve the target of Net-Zero. PM Narendra Modi stated at the Glasgow summit that India ranks fourth in the world in installed renewable energy capacity and India's non-fossil fuel energy has increased by more than 25% in the last seven years and now it has reached 40% of the country’s energy mix. Speaking on the challenge posed by the Indian Railways, PM Modi said, “This huge railway system has set a target of making itself 'Net Zero' by 2030. This initiative alone will lead to a reduction of emissions by 60 million tonnes (MT) annually. Similarly, our massive LED bulb campaign is reducing emissions by 40 million tonnes annually.” However, India is expected to require a massive financial backup to fund the ambitious decarbonisation moves. An Indian delegate at the COP26 stated, “We will need $1 Union government strengthening renewable energy sources for a sustainable economy trillion till 2030 mainly for renewable energy and storage; decarbonisation of industrial sector and adaptation. Let’s be clear that India will not update its NDCs till there is clarity on climate finance. We are in no mood to submit them until these issues are resolved.” Government's achievements India is ranking third in the Renewable Energy Country Attractive Index in 2021. India has a 1000+ GW renewable energy potential in the country and has experienced a 243% growth in renewable installed capacity from FY 2014 to FY 2021. India has the fifth largest installed capacity of renewable energy, the fourth largest installed capacity of wind power and the fifth largest solar installed capacity in the global context. Renewable energy has a share of 25.24% of the total installed generation capacity in India. According to government sources, India’s installed renewable energy capacity has increased by over two and a half times and stands at more than 141 Giga Watts (including large Hydro). It is about 37% of the country’s total capacity (till June 16, 2021). At the same time, installed solar energy capacity has also grown by over 15 times, which is standing at 41.09 GW. Additionally, installed renewable energy capacity (including large hydro) has grown from 76.37 GW in March 2014 to 150.54 GW in November 2021 - indicating a 97% growth. The renewable energy ministry informed that India has 39.44 GW for wind power, 41.09 GW for solar power, 10.34 GW for biopower, and 4.79 GW for small hydropower till May 31, 2021. Government's targets India has set a target to achieve a capacity of 175 GW worth of renewable energy by 2022, which will expand to 450 GW by 2030 – making it the world's largest expansion plan in the renewable energy field. A total of 42 solar parks of aggregate capacity of 23,499 MW was approved in 17 states by the government. Recently the solar park scheme has been doubled from 20 GW to 40 GW. Solar parks in Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) are included in the top five operational solar parks of 7 GW capacity in India. Among all states, Gujarat has performed comparatively well in the renewable energy field. The world’s largest renewable energy park of 30 GW capacity solar-wind hybrid project is now under installation in Gujarat. In July 2021, the renewable energy ministry approved the NTPC Renewable Energy Ltd. for building a 4,750 MW renewable energy park at the Rann of Kutch, Gujarat, which is going to be India's largest solar park to be developed by NTPC – the country's leading power producer. The Union government is committed to reducing the emissions intensity of GDP by 33% - 35% below the 2005 levels and is also estimated to increase the share of non-fossil fuel in total capacity to 40% by 2030. The government's ProductionLinked Incentive (PLI) scheme in High-Efficiency Solar PV manufacturing is another ambitious project introduced under the Atmanirbhar Bharat 3.0 programme, which is having a financial outlay of `4,500 crore. This step is expected to encourage India’s manufacturing capabilities and enhance exports. In addition to that, the Grid Connected Rooftop Solar Programme by the Union government has been a great success over the years. It is a part of the National Solar Mission having a target of 40 GW capacity with grid-connected rooftop solar projects by the year 2022. The second phase of the programme is currently in operation. On December 22, 2021, the Ministry of New and Renewable Energy published an invitation for 'Expression of Interest for conducting the evaluation of the programme'. Under the second phase, the installed capacity of 4 GW Rooftop Solar (RTS) projects has been targeted to be achieved in the residential sector by 2022. The renewable energy ministry has allocated targets of around 3.3 GW capacity to the state implementing agencies, and more than 1 GW capacity has been reported to be installed under the programme. The Union government is also thinking to develop a ‘green city’ in every state of the country, that will be powered by renewable energy to mainstream environment-friendly power through solar rooftop systems on all houses. In the green cities, there will be solar parks on the outskirts, waste-to-energy plants, and electric mobility-enabled public transport systems that will mitigate fossil-fuel consumption. To promote renewable energy in the country, the government has reduced the tariff for solar power by more than 75% using the plug-and-play model. The record low solar tariff at `2.44/ unit has been achieved in Bhadla, Rajasthan. Additionally, for encouraging domestic production of solar energy, customs duty on solar inverters has been inflated from 5% to 20%, and it has been increased from 5% to 15% on solar lanterns. FDI in renewable energy The Indian government has also given FDI permission for the sector; up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects, which is subject to provisions of The Electricity Act. The department for Promotion of Industry and Internal Trade (DPIIT) stated that inflow in the “Indian non-conventional energy sector stood at $ 10.28 billion between April 2000 and June 2021. Above $ 42 billion was invested in the country’s renewable energy sector since 2014. Investment in the green energy sector is being attracted by global investors in terms of expansion of their businesses and their goal towards net zero. Fresh investments in the clean energy sector in India, earlier reached $ 11.1 billion in 2018. Along with the governmental focus on the renewable energy sector, the domestic company stocks are also ushering those who are working in the same field. Like the focus on green energy is helping Reliance Industries' stocks to boom. All the globally reputed brokerage firms are being optimistic about this particular company stock because Reliance is not only investing in energy but clean energy. Reliance New Energy Solar Ltd. (RNESL) is systematically acquiring more plants to increase capabilities. Reliance has set a target of achieving a capacity of 100 GW of solar energy at Jamnagar by 2030, and the new acquisitions are helping to reach there. Tata Power and Adani Green Energy Ltd. are two other domestic companies that are expanding fast on the renewable portfolio.

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