RENEWABLE ENERGY

PM’s green energy push to help India meet 450 GW target by 2030

Prime Minister Narendra Modi has set a timeline for the resolution of all issues concerning the renewable energy sector to strengthen the country’s efforts to meet the target of 450 GW by 2030.

The PM has asked the Ministry of New and Renewable Energy (MNRE) to explore the possibility of an ordinance to ensure timely payments by discoms and recovery of dues for the generating companies, sources told CNBCTV18.

In a meeting held in December, Prime Minister also highlighted that Renewable Purchase Obligation (RPO) should be enforced in letter and spirit and should be considered as a parameter for financial devolution for the states. It has also asked for a mandatory letter of credit for renewable energy procurement and any overdue from discoms should be deducted from Finance Commission funds due to states. At the end of November 2019, Rs 5,939 crore of an overdue amount is pending from the discoms to the renewable energy generating companies.

To make the renewable energy sector financially viable, MNRE has been asked to work out details for separation of the credit limit for renewables from conventional power for financing. Issues of tariff cap and reverse bidding in the sector have also been identified for some change to make the sector attractive considering the targets are high.

The PM has also suggested increasing the period for declaration of non-performing asset (NPA) from 90 days to 180 days for the renewable energy projects which are commissioned and have power purchase agreements (PPAs). The ministry will also engage with the states to ease the number of days required for land-use change and land ceiling clearances to be approved within 45 days.

MNRE may also come out with a policy to mandate rooftop solar for all buildings above a specific size, bring in the new business model for solar rooftop, wind, and hybrid models, rent-a-roof scheme and solarisation of all government buildings by 2022

Source
CNBC
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