Additional Investment Worth $100 Billion Requisite to Meet 175 GW RE Target: MNRE Secretary

"In India, renewable energy program has been led by private sector investments...86 GW has been aided by $100-billion investments and to install the balance of around 90-odd GW we expect an investment of another $100 billion, " said Anand Kumar, secretary, Ministry of New and Renewable Energy, at the World Sustainable Development Summit

February 01, 2020. By News Bureau

India is expecting an investment of additional $100 billion to install about 90 GW of renewable energy capacity to meet the 175 GW target by 2022, a top government official said.

"In India renewable energy programme has been led by private sector investments...86 GW has been aided by $100-billion investments and to install the balance of around 90-odd GW we expect an investment of another $100 billion, " said Anand Kumar, secretary, Ministry of New and Renewable Energy, at the World Sustainable Development Summit.

He added that to appeal investments in India, the government has reinforced the power purchase agreements which cannot be renegotiated. Another step is to appropriately apportion the risks of investment between the developer and the government and to build a stout payment security mechanism.

Speaking of green financing, Kumar said, "We know that getting green financing is not easy, though we are trying to get support from the World Bank to help in the rooftop programmes. We are trying to open green windows through IREDA for assistance to sectors which are not catered by other financial institutions."

He added that to de-risk investment a payment security mechanism is essential and for its maintenance a corpus is needed, for which the government is building a payment security mechanism within the tariff.

Talking about domestic manufacturing, Kumar said, "Prior to the subsidy, when I'm buying power at the rate of 3 cents I am willing to give tariff of 3.25 to the project developer provided he brings in manufacturing in India. Under this manufacturing-linked tender, for where I was paying Rs 2.75 for solar vanilla tariff, I was willing to give Rs 2.92 to the people who will begin this manufacturing in India."

He further added that they have got two bidders to set-up 3 GW of solar cell and 3 GW of solar module manufacturing by 2021.

"We are now bringing out a tender in which renewable will be blended with thermal and would be in the ratio of 51:49," Kumar said.

He added that progressively as the demand would surge, the renewable energy share in the blend will also increase.

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