KUSUM Scheme – Harnessing Solar Power For Rural India
Solar water pumps to be installed in remote areas for irrigation needs Farmers can get extra income by selling surplus solar power to DISCOMs.
The Government of India is in the process of formulating a Scheme ‘KisanUrjaSurakshaEvamUtthaanMahabhiyan (KUSUM)’ which, among other things, provides for:
The details on funds and mode of implementation will be decided on approval of the Scheme.
European Investment Bank (EIB) and Indian Renewable Energy Development Agency (IREDA) Ltd. have signed a loan agreement for the second line of credit (LoC) of Euro 150 million on thenon-sovereign basis on 10th March 2018. The line of credit is for thetenure of 15 years including a grace period of 3 years, and it will be used for financing renewable energy and energy efficiency projects in India. More than 1.1 million households are expected to benefit from clean energy produced with these funds.
The loan agreement was signed by Shri K S Popli, Chairman and Managing Director, IREDA and Mr. W. Hoyer, President, EIB in the presence of Shri R K Singh, Union Minister of State (IC) Power and New & Renewable Energy and ShriAnand Kumar, Secretary, MNRE.
Speaking of India’s fascinating journey to electrify every single village, Shri R K Singh said, “There are villages in Ladakh and Arunachal Pradesh where one will track on foot for three to four days to reach. The aim is to bring electricity to even these remote places. It has been decided to go green, as they have the responsibility to future generations and the planet.” Highlighting the fact that renewable energy (RE) has now become economically viable, he said that companies bidding for RE projects are getting funds from all over the world. Many countries are expecting this experience to be shared.”
ShriAnand Kumar, Secretary, MNRE said that two factors- efficient technology and easy finance, are important for the success of renewable energy sector. He expressed confidence that India will exceed its target of 175 GW renewable energy by 2022.
Shri K S Popli, CMD, IREDA said that the speed with which the second line of credit was negotiated shows the confidence and comfort that EIB and IREDA had developed after working with each other for last four years. Moreover, the EIB has extended this line of credit without insisting on asovereign guarantee from Government of India, which also shows their commitment and confidence in the sector, he added. Mr. W. Hoyer, President, EIB appreciated India’s role in International Solar Alliance and its responsibility to Paris climate deal. He said that with much sunlight, solar energy is evidently a solution here.
Mr. Tomasz Kozlowski, Ambassador of the European Union to India, was among the dignitaries present along with other senior officials of MNRE, IREDA,and EIB.
EIB is the long-term lending institution of the European Union owned by its Member States. It works closely with other EU institutions to implement EU policy and is also engaged in multilateral financing. More than 90 percent of its activity is in Europe,but it is also a prominent investor globally. EIB’s activities focus on four priority areas including innovation and skills, access to finance for smaller businesses, infrastructure and climate & environment.
India has signed a Memorandum of Understanding (MoU) on Cooperation in the field of Renewable Energy with Hellenic. The MoU was signed by the External Affairs Minister, Smt. SushmaSwaraj, Government of India and H.E. Nikos Kotzias, Minister of Foreign Affairs of the Hellenic Republic.
Both sides aim to establish the basis for a cooperative institutional relationship to encourage and promote technical bilateral cooperation on new and renewable issues on the basis of mutual benefit equality and reciprocity.
The MoU envisages establishing a Joint Working Group to review, monitor and discuss matters relation to areas of cooperation. The MoU aims for exchange of expertise and networking of information.
A new project for distribution of 70 lakh solar study lamps in the states of Assam, Bihar, Jharkhand Odisha and Uttar Pradesh which was sanctioned by the Ministry of New and Renewable Energy (MNRE) in December 2016, is currently under implementation.
The One Million Solar Study Lamps Scheme which was sanctioned in January 2014 for empowering underserved communities of Rajasthan, Madhya Pradesh,and Maharashtra has been completed.
In Rajasthan, a total of 3.06 lakh solar study lamps have been distributed,and 927 persons including 360 women have been trained for local assembly and repair of the solar study lamps. The MNRE also has a separate skill development programme “Surya Mitra” for imparting training in the field of solar energy for installation and repair and maintenance of solar power systems.
Indian Renewable Energy Development Agency Limited (IREDA) and Rewa Ultra Mega Solar Limited (RUMSL) signed an agreement in the first half of 2018 for financing the shared infrastructure of two large Solar Parks in Madhya Pradesh.
Ministry of New & Renewable Energy (MNRE), World Bank & IREDA have been able to work out a proposal to channelize USD 100 million for creating acommon infrastructure for ultra-mega solar parks in India to achieve the 100 GW solar capacity addition target by 2022, set by the Prime Minister ShriNarendraModi. Under the World Bank Line of Credit, IREDA has sanctioned its first loan of Rs. 210.62 crores to RUMSL to finance two such solar parks in the state of Madhya Pradesh.
The agreement was signed by Shri S K Bhargava, Director (Finance), IREDA and ShriAvaneeshShukla, Executive Engineer, RUMSL in the presence of ShriUpendraTripathy, Interim Director General, International Solar Alliance (ISA).
The broad terms and condition of the agreement include afixed interest rate of 8.5% p.a. for entire loan tenure, moratorium from principal repayments upto5 years and loan repayment period of upto 20 years.
Speaking on occasion, Shri K S Popli, CMD, IREDA appreciated the initiative of MNRE, support of The World Bank and more specifically of DEA to reduce the Sovereign Guarantee fee to 0.5%. He further stated that this support from DEA would enable to expedite development of such proposals in other states also.
ShriUpendraTripathy, Interim Director General, ISA mentioned that India being in leading position in solar technologies, there is immediate attention for the development of 121 projects of solar technologies in 121 ISA member countries by April 21,2018. He congratulated IREDA and RUMSL for achieving the feat in short time frame and also for the innovative Payment Security Mechanism which will ensure timely payment to the developer.
Shri Manu Srivastava, Principal Secretary and Managing Director, RUMSL mentioned that RUMSL, at present, is implementing two solar parks,i.e.,Rewa with acapacity of 750 MW and Mandsaur with 250 MW capacities in the state of Madhya Pradesh. With the solar park model, Payment Security Mechanism and the Line of Credit from The World Bank, the tariff for Rewa project is discovered as low as Rs.3.30 on alevelized basis. Out of the total power proposed to be generated at Rewa solar park, 24% has been agreed to be purchased by Delhi Metro Rail Corporation and balance 76% by Madhya Pradesh Power Management Company Ltd( MPPMCL).
International Solar Alliance Forum at World Future Energy Summit, Abu Dhabi
Shri R.K. Singh announced USD 350 million Solar Development Fund by the Government of India for Solar Projects Financing.
On receipt of 15 ratifications, the International Solar Alliance (ISA) Framework Agreement entered into force on the 6th December 2017 thereby making ISA a de jure treaty-based international intergovernmental organization. So far 19 countries have ratified,and 48 countries have signed the ISA Framework Agreement.
In one of its first outreach programmes post-ratification, the ISA hosted a two Day Event ‘International Solar Alliance Forum’ in the first half of 2018 at the Future World Energy Summit (WFES) 2018. WFES is a signature event of a global initiative, Abu Dhabi Sustainability Week, hosted by Masdar. During the ISA event, an ISA Pavilion was also set up for thedissemination of information about ISA and its activities and programmes.
On the first day of the ISA Forum, the Ministerial Plenary of ISA Energy Ministers was held. The ISA Ministerial was attended by seven Energy Ministers of ISA Member countries. They presented their views on benefits of collaboration, synergies, and knowledge sharing at the international level to scale up solar energy for universal energy access and investing in Innovations, Technology,and R&D for solar projects followed by breakout sessions.
Delivering the keynote address on occasion, Shri Raj Kumar Singh, Minister of State (IC) for Power and New & Renewable Energy, Government of India congratulated ISA for organizing the ISA Forum as its first overseas outreach activity. He stated that over the years the Renewable Energy has become cheaper and is set to replace conventional energy, which is a healthy development.Also, added that India has one of the fastest growing renewable energy programmes in the World and the country would achieve its target of 175 GW of installed renewable energy capacity well before 2020. The Minister said that that ISA should help mobilize sufficient funds for solar energy projects. During his address, Shri Singh announced setting up of a $ 350 million solar development fund by the Government of India for solar projects financing.
While formally opening the Ministerial session and welcoming the participants, ShriUpendraTripathy, Interim Director General of ISA informed about theexchange of LoIs / MoUs of Ten solar-related projects which various company and bankers signed early in the day. He further stated that ISA should stand for translating ‘Action into Transaction. He also informed that over 100 projects should be signed by April 2018 under ISA umbrella. He also thanked member countries and various stakeholders making ISA a reality in a short time. He further informed about,and anextended invitation for the 2nd Re-Invest meet to be held in partnership with the Ministry of New and Renewable Energy, Government of India during 19-21th April 2018.
The Ministerial Plenary was followed by three technical panel discussions: ISA a Trillion Dollar Opportunity; Networking of R&D Institutions in ISA Countries for Solar Innovation, Incubation & Start-Ups; and Best Practices for Solar Capacity Building in ISA Countries. These sessions were attended by Energy Ministers, policymakers, Multilateral Banks & Finance Institutions, R&D Institutions & Innovators, solar project developers and manufacturers, investors and other stakeholders.
At the end of the ISA Ministerial session, the YES Bank committed to financingsolar projects of over USD 5 billion. M/s CLP and M/s NTPC Limited announced forging partnership deal with ISA and committed to making avoluntary contribution of USD 1 million each to ISA fund corpus. IEA and GCF also announced entering into apartnership with ISA.
Being an action-oriented organization, ISA promotes actual on theground rolling out of solar projects. Therefore, during thefirst half of the day, nine companies exchanged LoIs/MoUs for solar-related projects in the ISA Pavilion. The companies areVyonarc Development Ltd., Greenko Solar, Gensol Group and SOLARIG from Spain, Shakti Pump, Refex Energy, Amplus Solar, TATA Power, Jackson Solar,Hero Future Group and Zodiac Energy.
The Paris Declaration establishes ISA as an alliance dedicated to the promotion of solar energy among its member countries. The ISA’s important objectives include global deployment of over 1,000GW of solar generation capacity and mobilization of investment of over US$ 1000 billion into solar energy by 2030. As an action-oriented organization, the ISA brings together countries with rich solar potential to aggregate global demand, thereby reducing prices through bulk purchase, facilitating the deployment of existing solar technologies at scale, and promoting collaborative solar R&D and capacity building.
When the ISA Framework Agreement entered into force on December 6th, 2017, ISA formally became a de-jure treaty-based International Intergovernmental Organization, headquartered inGurugram, India. As of now, the ISA Framework Agreement has been signed by 48 countries, with 19 of them also depositing the instruments of ratification with the Ministry of External Affairs, Government of India.
Minister of State (IC) for Power and New & Renewable Energy, Shri Raj Kumar Singh, in a written reply to a question on support to solar power projects in the country, in Lok Sabha informed that the Government has various solar power programmes.These are being implemented through theassistance of World Bank, International Finance Corporation, and other multilateral financial institutions.
The Minister stated that the World Bank is providing assistance of USD 100 million for development of internal infrastructure of solar parks a programme being implemented by the Indian Renewable Energy Development Agency Ltd. (IREDA) under the aegis of this Ministry. Also, the International Finance Corporation (IFC) has signed an agreement with the State government of Madhya Pradesh to help them in setting up of various solar PV power projects, Shri Singh added.
Further, the Minister stated that the World Bank had provided a concessional loan of USD 620 million to the State Bank of India and of USD 500 million by the Asian Development to the Punjab National Bank for financing of grid-connected rooftop solar projects in Industrial and Commercial sectors
Technical Assistance is also available for promotion of rooftop systems under World Bank, Asian Development Bank, USAID and GIZ assistance. The assistance under such schemes isavailable to all States/UTs depending on requirement and demand. The solar and wind power projects are very competitive as compared to conventional power projects. The lowest tariffs in solar and wind discontinued recently have come down to Rs. 2.44/kWh and Rs. 2.43/kWh respectively, Shri Singh informed.
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