MNRE & GIZ Signs Agreement to Improve Framework Conditions for Grid Integration of Renewable Energies

The Ministry of New and Renewable Energy (MNRE), Government of India and Deutsche Gesellschaft f Internationale Zusammenarbeit (GIZ) GmbH India on behalf of the Government of the Federal Republic of Germany signed an agreement on technical cooperation under the Indo-German Energy Programme - Green Energy Corridors (IGEN-GEC). The main objective of this programme component is to improve the sector framework and conditions for grid integration of renewable energies.

In the distinguished presence of Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal and the German Ambassador to India, H.E. Dr. Martin Ney, the agreement was signed by Dr. Wolfgang Hannig, Country Director, Deutsche Gesellschaft f Internationale Zusammenarbeit (GIZ) GmbH India and Mr. A.N. Sharan, Joint Secretary, Ministry of New and Renewable Energy (MNRE).

Speaking on the occasion, Shri Goyal said am delighted that this relationship between GIZ and India will result in improve market mechanisms and regulations, help us train manpower, to ensure grid stability & integration of renewables into grid and ensure safer & secure grid and a grid which can take cyber challenges . Shri Goyal further added that Germany is a very reliable partner country and has been supporting India in achieving its goal for sustainable development through bilateral cooperation for almost six decade now.

Dr. Ney added When in July 2012 Power Grid Corporation of India submitted a comprehensive and well elaborated Transmission Plan for Envisaged Renewable Capacity to MNRE it paved the way for India's ambitious goals to transform its power system by significantly increasing the share of renewable energies in the energy mix. Also in Germany's Energiewende the evacuation and grid integration of renewable energy plays a pivotal role with major technological and fiscal challenges. Both the countries have very constructive dialogue under the Indo-German Energy Forum (IGEF).

Being committed to this objective, GIZ and MNRE will work on improving market mechanisms and regulations for integration of Renewable Energies; advancing technical and institutional conditions in specified target states, regions and on a national level; adding human capacities to handle systemic (strategic, managerial, financial, technical) Renewable Energies integration in an efficient and effective manner.

The IGEN-GEC programme is commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ) and jointly implemented by Ministry of New and Renewable Resources (MNRE), Ministry of Power (MoP), Government of India and Deutsche Gesellschaft f Internationale Zusammenarbeit (GIZ). This programme component supports the implementation of the Renewable Energy Management Centre (REMCs), Green Energy Corridors scheme of the Government of India which is a prerequisite for large scale grid integration of renewable energy thus contributing to achieve the 175 GW target of the Government of India for renewable energy generation capacity by 2022.

Based on the Indo-German Consultations held on 11th April 2013 in Berlin, both countries confirmed collaboration on the Green Energy Corridors. In the subsequent bilateral development cooperation negotiations, it was agreed that Germany will provide concessional loans of up to 1 billion Euros through KfW (German Development Bank) and up to 10 million Euros under technical assistance in forecasting, balancing, market design, network management and demand side energy efficiency, implemented by GIZ. These contributions have been further increased in 2015 and 2016 by concessional loans up to 400 million Euros for transmission infrastructure and up to 7 million Euros for training activities in the photovoltaic solar rooftop sector and energy efficiency in residential buildings under technical assistance through GIZ.

It was added that India & Germany will further benefit each other in the journey towards sustainable development. Economic growth and a cleaner world with successful continuation of cooperation & fruitful exchange.

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