The major steps being taken by the government to meet the targets of renewable energy in the country include permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route.
Renewable energy sources are expected to account for around 21 per cent of electricity demand in 2021-22, Power Minister R K Singh said on Thursday. “As per Central Electricity Authority’s National Electricity Plan, contribution of renewable energy sources is estimated to be around 21 per cent of the total electricity demand of the country in the year 2021-22 and 24 per cent by 2026-27,” Singh was quoted as saying in a statement issued by the power ministry
The major steps being taken by the government to meet the targets of renewable energy in the country include permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route, strengthening of Power Purchase Agreements(PPAs) and mandating requirement of Letter of Credit(LC) as payment security mechanism by distribution licensees for ensuring timely payments to renewable energy generators.
As part of Intended Nationally Determined Contributions under the Paris Accord on Climate Change, India has made a pledge that by 2030, 40 per cent of its installed power generation capacity shall be from non-fossil fuel sources and will reduce its carbon emission intensity of GDP by 33-35 per cent considering 2005 level.
The government has set a target to install 175 GW of renewable energy capacity in the country by the year 2022. This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power.Exclusive offer: Use code “BUDGET2020” and get Moneycontrol Pro’s Subscription for as little as Rs 333/- for the first year.
First Published on Feb 6, 2020 09:30 pm