Renewable energy capacity of 7,591.99 MW has been commissioned in 2019-20 (up to December 2019), while another 34,160 MW is under various stages of implementation, informed Minister of State (I/C) For New & Renewable Energy, Power and MoS for Skill Development and Entrepreneurship RK Singh, as per a PIB release. Further, renewable energy capacity addition in 2019-20 is expected to exceed the capacity addition of 8,532.22 MW achieved in 2018-19.
Notably, most of the grid connected renewable energy projects in the country are being implemented by private sector developers selected through a transparent competitive bidding process. Capital investment made by these developers is their privileged information. However, based on standard capital costs per MW, an investment of Rs 404.59 billion is estimated to have been made in the renewable energy sector in 2018-19. And, an investment of Rs 367.29 billion is estimated to have been made in 2019-20 up to December 2019.
Singh further elaborated on the steps being taken by the government to boost investment in the renewable energy sector which, as per the release, include: Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route, strengthening of power purchase agreements (PPAs), mandating requirement of Letter of Credit (LC) as payment security mechanism by distribution licensees for ensuring timely payments to renewable energy generators, setting up of ultra mega renewable energy parks (UMREPs) to provide land and transmission on plug and play basis to investors, waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by December 31, 2022, notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in a cost-effective manner, declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022, laying of transmission lines under Green Energy Corridor Scheme for evacuation of power in renewable rich states, finalisation of manufacturing-linked tender for setting up domestic manufacturing capacity, launching of new schemes such as Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase-II, 12,000 MW CPSU Scheme Phase-II, among others.
Singh further enumerated that the government has undertaken several financial, policy and regulatory measures for incentivising deployment of renewable energy in the country.