India set to cross 100GW renewable energy capacity mark in 2020

India is all set to cross the 100GW renewable energy capacity mark in 2020 and can make rapid strides towards the ambitious 175GW clean energy target by 2022 provided the government keeps a close eye on key issues and deals with those well in time.

The government however needs to promote storage to ensure 24X7 clean energy supply as coal fired thermal power still remains the base load in the country.

Presently, the issues hampering growth of renewables in India are lack of interest of financial institution to fund renewable energy projects, safeguard duty on imported solar panels, ambiguity over goods and services tax (GST) on solar equipment and low investor sentiment due to delayed or non-payment by discoms to clean energy developers.

India's installed renewable energy generation capacity touched around 86GW by November-end. This includes solar, wind, small hydro, biomass, waste to energy and others.

Around 30GW renewable capacity including 18GW solar and 10GW wind energy is under implementation. Besides, around 40 GW including 36GW solar and 3.4GW wind energy, is being tendered.

"Together with other schemes being implemented by the government, I expect RE (Renewable Energy) sector to get a big boost in 2020 and the years thereafter. I expect our RE capacity to cross 100GW mark in 2020," Power and New & Renewable Energy Minister R K Singh told PTI.

Earlier this year, several new programs such as PM-KUSUM, solar rooftop phase-2, development of Ultra Mega Renewable Energy Power Parks (UMREPPs) etc have been introduced to promote renewable energy sector in India.

Singh said,"Our initiatives in 2020 will be aimed at achieving RE targets by providing an environment of policy certainty. Our efforts will be to minimise the risks and promote ease of doing business for investors, manufacturers and other stakeholders."
He said,"In simple words, development of storage systems is necessary in order to ensure 247 power supply using RE sources like solar and wind. We are committed for the growth and development of the storage systems such as Lithium-ion batteries, pumped Hydro and Hydrogen. We shall be technology neutral in this and allow the market to decide the appropriate systems in various performances depending on markets."
SPDA Director General Shekhar Dutt said, "The major hit came from Andhra Pradesh which initiated the renegotiation of closed PPAs (power purchase agreements) thereby raising question over sanctity of contracts and shaking the confidence of domestic as well as foreign investors in the sector."
He further said,"This (Andhra issue) was coupled with ill health of state DISCOMs which impacted the timely payments against power purchases. Some states topping the chart include Andhra Pradesh, Karnataka, Telangana and Tamil Nadu. This led to difficulty in raising finance specially from scheduled public and private banks who remained reluctant to invest in infrastructure projects."