The countries across the world are facing climate change issues due to environmental degradation and pollution. Generating power from coal based resources are adding to the greenhouse gases in the atmosphere. India, as a developing country has also faced such issues as the power generation was mainly dominated by coal. In the last four and half years, things have changed on the power generation front, the Government of India has actively focussed on harnessing the renewable sources of energy predominantly the solar and wind energy. The coal based power generation has gone out of focus and is replaced mainly by solar and wind. As per the Paris Accord on Climate Change, India have made a pledge that by 2030, 40% of installed power generation capacity shall be based on clean sources, it was determined that 175 GW of renewable energy capacity will be installed by 2022. Sandeep Sharma takes a look at the Wind Energy sector in India...
RE FACTS AND FIGURES
As per year end review 2018 report of Ministry of New and Renewable Energy (MNRE), India attains global 4th and 5th positions in wind and solar power installed capacities; India is now positioned at 5th place globally for overall installed renewable energy capacity. A total of 101.83 billion units of power were generated in the country during the year 2017-18 from renewable energy. The Government has declared the trajectory of bidding 60 GW capacity of solar energy and 20 GW capacity of wind energy by March 2020, leaving two years’ time for execution of projects. A total of 74.79 GW of renewable energy capacity has been installed in the country as on 31/12/2018 which includes 25.21 GW from Solar, 35.14 GW from Wind, 9.92 GW from Bio power and 4.52 GW from Small Hydro Power.
A total of 75.76 GW of renewable energy capacity has been installed in the country as on 31/01/2019 which includes 26.02 GW from Solar, 35.28 GW from Wind, 9.91 GW from Bio power and 4.52 GW from Small Hydro Power.
CENTRAL FINANCIAL ASSISTANCE (CFA)
The Government of India has released an amount of Rs. 3584.08 crore in the form of Central Financial Assistance (CFA) during 2018-19 (up to 05/2/2019) under various renewable energy schemes /programmes of the Ministry of New and Renewable Energy in the country as stated in the following table.
The Government of India has set a target of installing 175 GW of renewable energy capacity by the year 2022 has been set, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power.
INSTALLED CAPACITY & TARGETS
The country currently has the fourth highest wind installed capacity in the world with total installed capacity of 34.98 GW as on October, 2018 against a target of 60 GW by 2022. Further, around 9.4 GW capacity is under implementation or have been tendered out.
The Ministry plans to bid out 10 GW wind power capacity each year for 2018-19 and 2019-20, so that bidding gets completed for entire 60 GW capacity additions by March 2020, leaving two years’ time for execution of projects.
WIND ENERGY POTENTIAL
The recent assessment conducted by National Institute of Wind Energy (NIWE) indicates a gross wind power potential of 302 GW in the country at 100 meter above ground level.
The Government of India has taken the following policy measures in order to achieve the target of generating 175 GW of power through renewable sources.
TRANSPARENT BIDDING MECHANISM
The Government has issued ‘Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects’, vide Resolution notified on 8th December, 2017, with an objective to provide a framework for procurement of wind power through a transparent process of bidding. Transparent bidding and facilitation for procurement of solar and wind power through tariff based competitive bidding process have brought down the cost of solar and wind power down to an affordable level. The lowest tariff of Rs. 2.44 per unit for solar was discovered in reverse auctions carried out by Solar Energy Corporation of India (SECI) in May 2017, for 200 MW and again in July, 2018, for 600 MW, and Rs. 2.43 per unit for wind was discovered in a tender of 500 MW project by Gujarat Government in the month of December 2017.
The expansion of the wind industry has resulted in a strong ecosystem, project operation capabilities and a manufacturing base. State-of-the-art technologies are now available in the country for the manufacture of wind turbines. All the major global players in this field have their presence in the country. Over 24 different models of wind turbines are being manufactured by more than 12 different companies in India. Wind turbines and components are being exported to the US, Australia, Europe, Brazil and other Asian countries. Around 70-80% indigenization has been achieved with strong domestic manufacturing in the wind sector.
INTER-STATE TRANSMISSION CHARGES & LOSSES
To boost the power generation through renewable energy sources, the Government of India has waived the Inter State Transmission System charges and losses for inter-state sale of solar and wind power for projects to be commissioned by March 2022. This move has the potential to create a pan-India RE market, as generation in excess of the state’s own requirement could be transmitted to the resource poor states without additional financial burden.
RENEWABLE PURCHASE OBLIGATION (RPO)
The Government of India have notified Renewable Purchase Obligation (RPO) trajectory upto the year 2019 and are in the process to notify RPO trajectory upto the year 2022.
RENEWABLE GENERATION OBLIGATION (RGO)
For mainstreaming renewables, the government have introduced Renewable Generation Obligation (RGO). This provision will encourage coal based thermal power generators to diversify in renewable energy portfolio.
WIND-SOLAR HYBRID POLICY
The National Wind-Solar Hybrid Policy was issued in May 2018. The main objective of the policy is to provide a framework for promotion of large grid connected wind-solar PV hybrid system for optimal and efficient utilization of wind and solar resources, transmission infrastructure and land. The wind - solar PV hybrid systems will help in reducing the variability in renewable power generation and achieving better grid stability. A bid for setting up of first 1200 MW Greenfield wind solar hybrid project was floated by SECI.
OFFSHORE WIND POWER POLICY
The National Offshore wind energy policy was notified in October 2015 with an objective to develop the offshore wind energy in the Indian Exclusive Economic Zone (EEZ) along the Indian coastline. Initial studies carried out by NIWE indicate offshore wind energy potential off the coasts Gujarat and Tamil Nadu. LiDAR was commissioned on the monopile platform in November 2017 at Gulf of Khambhat, off Gujarat coast for wind resource assessment. NIWE floated Expression of Interest (EoI) for establishment of 1 GW offshore wind farm in Gulf of Khambhat region off Gujarat coast. 35 parties (both national and international) showed interest. National targets for offshore wind capacity additions of 5 GW by 2022 and 30 by 2030 declared.
GREEN ENERGY CORRIDOR
The Green Energy Corridor projects seek creation of grid infrastructure for renewable power evacuation and to reshape grid for future requirements.The intra state transmission scheme (InSTS) being implemented by eight renewable rich States with an investment of Rs. 10,141 crores will set up about 9400 ckm transmission lines and Substations of total capacity of approx. 19000 MVA to be completed March 2020.
Foreign investors can enter into joint venture with an Indian partner for financial and/or technical collaboration and for setting up of renewable energy-based power generation projects. 100% foreign investment as equity qualifies for automatic approval. Government of India is also encouraging foreign Investors to set up renewable energy-based power generation projects on build-own-operate basis.
RESEARCH & DEVELOPMENT
The MNRE has decided to scale-up its R&D effort to Technology Development and Innovation Programme. The focus is on promoting application oriented innovation, integrated with research and development for for commercial applications and testing and standardization for quality and reliability assurance in renewable energy sector. A Technology Development and Innovation Policy (TDIP) is also being finalised. It is based on a robust ecosystem for support for research, innovation and validation for technology development and demonstration, testing and standardization, awards for innovation linked with start-ups.
Over US$ 42 billion investment was made in renewable energy in India during last 4 years. New opportunities have emerged- altogether new business space has been created. Indian companies have begun to explore foreign stock exchanges as a source of funds. India is progressively becoming a most favoured destination for investment in renewable.