India’s Renewable Energy Investment Story so far…

In Opinions, Renewable Energy, Sustainability, Technology

Around 293 global and domestic companies have committed to generate 266 GW of solar, wind, mini-hydel and biomass-based power in India over the next 5–10 years. The initiative would entail an investment of about US$ 310–350 billion.

Between April 2000 and March 2016, the industry attracted US$ 10.48 billion in Foreign Direct Investment (FDI).

Some major investments and developments in the Indian power sector are as follows:

  • The State Bank of India (SBI) has signed an agreement with The World Bank for Rs 4,200 crore (US$ 625 million) credit facility, aimed at financing Grid Connected Rooftop Solar Photovoltaic (GRPV) projects in India.
  • The World Bank Group has committed to provide US$ 1 billion for India’s solar energy projects and plans to work with other multilateral development banks and financial institutions to develop financing instruments to support future solar energy development in the country.
  • The Ministry of New and Renewable Energy (MNRE) has signed an agreement with Germany-based KfW Development Bank to fund the Rs 300 crore (US$ 44.47 million) floating solar projects in Maharashtra and Kerala, which is expected to generate over 310 GW of green energy.
  • CLP India, one of the largest foreign investors in India’s power sector, has acquired a 49 per cent stake in SE Solar, a Special Purpose Vehicle (SPV) set-up by Suzlon Group for building a 100 MW solar energy plant at Veltoor in Telangana, for Rs 73.5 crore (US$ 10.9 million).
  • The Ministry of New and Renewable Energy (MNRE) plans to launch an integrated bio energy mission with an investment of Rs 10,000 crore (US$ 1.48 billion) from FY 2017-18 to FY 2021-22, aimed at enhancing the use of bio-fuels like ethanol and biogas and reducing consumption of fossil fuels.
  • The world’s largest single rooftop solar power plant of 11.5 MW capacity spread across 42 acres was inaugurated in Beas Dera campus in Amritsar, which is expected to generate power for approximately 8,000 homes.
  • Canada’s second largest pension fund, Caisse de depot et placement du Quebec (CDPQ), has set up its office in India and committed to invest US$ 150 million in the Indian renewable energy sector over the next three to four years.
  • Suzlon Energy Ltd, one of India’s leading wind turbine maker, plans to set up 3,000 Mega Watt (MW) power generation units of solar, wind and hybrid sources in Telangana, with an investment of Rs 1,200 crore (US$ 178 million).
  • Ostro Energy Private Limited, a renewable energy platform backed by private equity (PE) firm Actis, plans to invest US$ 425 million in projects in Andhra Pradesh, including two wind farms with a total capacity of 197.4 Mega Watt (MW).
  • SunEdison, world’s largest renewable energy company, plans to continue its focus on ‘Make in India’ by further reducing the cost of renewable energy and developing over 15 gigawatts (GW) of wind and solar projects in the country by 2022.
  • Aditya Birla Group has announced a partnership with the Abraaj Group, a leading investor in global growth markets, to build a large-scale renewable energy platform that will develop utility-scale solar power plants in India.
  • Inox Wind Ltd, a subsidiary of Gujarat Fluorochemicals, a wind energy solutions provider, plans to double its manufacturing capacity to 1,600 MW at a total investment of Rs 200 crore (US$ 29.65 million) by the end of the next financial year.
  • Reliance Power Ltd signed an accord with the Government of Rajasthan for developing 6,000 MW of solar power projects in the state over the next 10 years.
  • Hilliard Energy plans to invest Rs 3,600 crore (US$ 533.66 million) in Ananthapur district of Andhra Pradesh in the solar and wind power sector for the generation of 650 MW of power.
  • Solar technology provider SunEdison signed a definitive agreement to acquire Continuum Wind Energy, Singapore, with assets in India. The company, headquartered in Belmont, California, would take over 242 MW of operating wind assets that Continuum owns and operates in Maharashtra and Gujarat as well as 170 MW of assets under construction.
  • Japanese internet and telecommunications giant SoftBank, along with Bharti Enterprises (of Sunil Mittal) and Taiwanese manufacturing giant Foxconn, plan to invest US$ 20 billion in solar energy projects in India.

Government Initiatives

The Government of India has identified power sector as a key sector of focus so as to promote sustained industrial growth. Some initiatives by the Government of India to boost the Indian power sector:

  • The Government of India plans to set up a trading platform for clean energy, which will be jointly developed by the Ministry of New and Renewable Energy (MNRE) and Power Trading Corporation of India (PTC), to help states buy, sell and trade renewable-based power.
  • The Government of India and the Government of the United Kingdom have signed an agreement to work together in the fields of Solar Energy and Nano Material Research, which is expected to yield high quality and high impact research outputs having industrial relevance, targeted towards addressing societal needs.
  • Mr Piyush Goyal, Minister of State (Independent Charge) for Power, Coal, New and Renewable Energy, has stated that the Government of India has set a target to electrify all un-electrified villages in the country by the end of 2016.
  • The Government of India plans to start as many as 10,000 solar, wind and biomass power projects in next five years, with an average capacity of 50 kilowatt per project, thereby adding 500 megawatt to the total installed capacity.
  • Government of India has asked states to prepare action plans with year-wise targets to introduce renewable energy technologies and install solar rooftop panels so that the states complement government’s works to achieve 175 Gigawatts of renewable power by 2022.
  • The Ministry of New and Renewable Energy (MNRE) has outlined new guidelines which allow state government to use its unproductive and non-agricultural land for solar parks, thereby minimising the use of private land and reducing the problems faced and costs incurred for land acquisition for solar park projects.
  • The Union Cabinet has approved amendments to the new power tariff policy under the Electricity Act that aims to improve regulations for setting rates, promote clean energy and ensure uninterrupted supply to all consumers by FY 2021-22.
  • The Union Cabinet has approved the Ujwal DISCOM Assurance Yojna (UDAY) for financial turnaround and revival of power distribution companies (DISCOMs), which will ensure accessible, affordable and available power for all.
  • The Ministry of Power has planned to provide electricity to 18,500 villages in three years under the Deendayal Upadhyaya Gram Jyoti Yojana (DUGJY). Out of these, 3,500 villages would receive electricity through off-grid or renewable energy solutions.
  • The Ministry of New & Renewable Energy is implementing two national level programmes, namely Grid Connected Rooftop & Small Solar Power Plants Programme and Off-Grid & Decentralised Solar Applications, in order to promote installation of solar rooftop systems, as per Mr Piyush Goyal, Minister of State (Independent Charge) for Power, Coal & New and Renewable Energy.
  • The Government of Odisha plans to set up a large 1,000-MW solar power park under public-private partnership (PPP) mode involving an investment of about Rs 6,500 crore (US$ 953.67 billion).
  • The Government of Telangana plans to set up an incubator centre, in collaboration with University of Austin, Texas, for start-ups in the renewable energy sector, to support new companies entering the renewable energy market.
  • A Joint Indo-US PACE Setter Fund has been established, with a contribution of US$ 4 million from each side to enhance clean energy cooperation.
  • The Government of India announced a massive renewable power production target of 175,000 MW by 2022; this comprises generation of 100,000 MW from solar power, 60,000 MW from wind energy, 10,000 MW from biomass, and 5,000 MW from small hydro power projects.
  • The Union Cabinet of India approved 15,000 MW of grid-connected solar power projects of National Thermal Power Corp Ltd (NTPC).

Sourced from the India Brand Equity Foundation Power Report

 

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