Will talk to states to iron out challenges in RE sector: Pralhad Joshi

After receiving record high capacity addition commitment from states and private sector alike, the Ministry of New and Renewable Energy (MNRE) is gearing up for the next task of ironing out the challenges in the sector.
 

Speaking with Business Standard on the sidelines of the 4th RE-Invest conference, Pralhad Joshi, Union minister for MNRE, said he would start an outreach with the states to successfully implement all flagship schemes of the Centre. On Monday at RE-Invest, the ministry received commitments worth 540 gigawatt (Gw) of RE capacity addition by the States.
 

“We have reached 200 Gw of renewable capacity addition. Commitment of over 500 Gw will take the total to more than 700 Gw by 2030. So, even if some capacity doesn’t turn up, one thing is 100 per cent assured that 500 Gw we are going to cross. This is the confidence that we have got from this event,” the minister said.
 

Joshi said in the discussions with the industry, two key issues of RE evacuation and financing have emerged and this will form the backbone of the way forward plan for the ministry. “Industry has expressed that evacuation in states is a challenge, issues like right of way. In green energy open access as well, some states are still reluctant. I will personally meet states, reach out to them to iron out these issues. They are key stakeholders and now that they have declared their commitment, we should work together,” the minister said.

He said through his outreach, he would also amplify the two flagship schemes of MNRE — PM Suryaghar Yojana and PM-KUSUM — which require support of State governments’ machinery.
 

“In PM-KUSUM, states have to do awareness and also design their systems to implement the scheme. Some states have over-achieved their targets and are asking for more allocation. Andhra Pradesh is one such state. So, now we are thinking if some state is not performing well, we will take their allocation and give it to the state that needs it,” Joshi said.
 

For PM Suryaghar, identifying the beneficiaries, who require free electricity or earn from sale of power from their rooftop, lack of net metering is posing a challenge and the minister plans to address this soon. “In most States, it is delayed as they have the protocol of feasibility study for providing net meters. So, we are requesting the states to exempt it from feasibility study,” he said.
 

Joshi, who was at the helm of the ministry of coal in the earlier BJP government, is credited with bridging the demand-supply gap in coal. He plans to emulate the same in the RE sector. The lack of power purchase agreements (PPAs) in the sector is hurting standing and under-construction projects, which are unable to find buyers.
 

“My short and specific answer is we are pursuing the States. As of now, we can only pursue them. Going forward, it will become a necessity for them as revenue in the other infrastructure sectors would depend on the green energy deployment. Your steel would need to be green, your textile should have green power, and so on. Global green taxation would also be a push for some of the industrial States,”Joshi said.

The minister also held bilateral meetings with Germany and Denmark. He said a lot of nations have come forward with demand for green hydrogen. Close to 50 per cent of green hydrogen being manufactured in the country is already tied up for exports. We are hoping it will rise in near future. We are ensuring the whole supply chain of green hydrogen and electrolyser manufacturing are indigenous,” the minister said.