Promotion of Solar Energy



Promotion of Solar Energy

The Government is taking the following major steps to promote solar energy industry:

i.                         Fiscal and financial incentives in the form of accelerated depreciation, concessional/nil customs and excise duties, preferential tariffs and generation based incentives are being provided to improve viability of solar power generation units.


ii.                       An enabling policy and regulatory environment is being created through measures like solar specific RPOs under National Tariff Policy {0.25% in Phase 1 (2013) to increase to 3% by 2022}, State Specific Solar Policies and RPO targets, and REC mechanism.

iii.                     Capital subsidy is being provided for off-grid/decentralized solar power generation systems.

iv.                     Solar Parks are being planned in various parts of the country to achieve cost reductions of solar power generation units through utilization of common infrastructure.

v.                      A scheme for promotion of grid-connected roof-top PV systems with a provision for 30% subsidy has also been formulated.

vi.                    The R&D in solar is also being encouraged. Ministry provides financial support to industry for R&D project.

            The allocation of the scheme wise budget for solar energy in MNRE for Financial year 2014-15 is given below:

Schemes
Budget Estimate (B.E.) (Rs.
In crores)
Grid Interactive Solar Power
750
Off-Grid/Distributed and Decentralized Solar Power
788
Research and Development in Solar
45
National Institute of Solar Energy and Solar Energy Corporation
80

Funds are released to State Nodal Agencies and other in accordance with proposals received from them. This was stated by Sh. Piyush Goyal, Minister of state (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today.

The Minister further stated that The above schemes are being implemented through various State Nodal Agencies/Channel Partners/Financial Institutions etc. and circulate to States, Various stake holders and put up on website
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Renewable Energy Policy

The Government has formulated an Integrated Energy Policy (IEP) covering all sources of energy including renewable energy sources. The IEP document gives a roadmap to develop energy supply options and increased exploitation of renewable energy sources. The Ministry of New and Renewable Energy (MNRE) has made a Plan for a capacity addition of about 30,000 MW power during the 12th Plan period (2012-17) from various renewable energy sources in the country. This was stated by Sh. Piyush Goyal, Minister of state (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today.

The Minister further stated that the Government is taking the following major steps to promote solar energy in the country:

(i) National Solar Mission is being implemented to give a boost to utilization of solar energy for power generation as well as direct thermal energy applications in the country, with a long-term goal of adding 20,000 MW of grid-connected solar power by 2022, to be achieved in 3 phases (1st phase up to 2012-13, 2nd phase from 2013 to 2017 and the 3rd phase from 2017 to 2022).

ii. An enabling policy and regulatory environment is being created through measures like Solar specific RPOs under National Tariff Policy {0.25% in Phase 1 (2013) to increase to 3% by 2022}, State specific Solar Policies and RPO targets, and REC mechanism. Efforts are being made to ensure compliance by DISCOMs and obligated entities.

iii. Fiscal and financial incentives in the form of accelerated depreciation, concessional/ nil customs and excise duties, preferential tariffs and generation based incentives are being provided to improve the viability of the solar power generation units.

iv. Capital subsidy is being provided for off-grid/ decentralized solar power generation systems.

v. A scheme for setting up Grid-connected Solar PV Power projects of 750 MW aggregate capacity with Viability Gap Funding from NCEF is being implemented.

vi. A scheme for promotion of grid-connected roof-top PV systems with a provision for 30% subsidy has also been formulated.

vii. Solar Parks are being planned in various parts of the country to achieve cost reductions of solar power generation units through utilization of common infrastructure.
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Energy Deficiency Issues

The Government implements renewable energy programmes in conjunction with National Rural Drinking Water Programme and the Swachh Bharat Mission (Gramin) as per details given below:

Ministry of Drinking Water and Sanitation along with Ministry of New and Renewable Energy have initiated a new Scheme for installation of 20,000 Solar Pumping Systems in habitations with populations between 150 to 250. The said pumps are to be installed in remote areas of the country where there is no supply of electricity.

- The Swachh Bharat Mission (Gramin) {SBM(G)} which aims at attaining a Open Defecation Free India by 2nd October, 2019, by providing access to toilet facilities to all rural house-holds and initiating Solid and Liquid Waste Management is a main component of Swachh Bharat Mission (Gramin). Under this component, activities like compost pits, vermin composting, biogas plants, low cost drainage, soakage channels/ pits, reuse of waste water and system for collection, menstrual hygiene management, segregation and disposal of household garbage etc can be taken up. Convergence of SBM (G) with MNRE can be taken in the construction of biogas plants for solid waste management of bio-degradable wastes.

This was stated by Sh. Piyush Goyal, Minister of state (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today.
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Electricity from Paddy Husk

The Ministry of New and Renewable Energy (MNRE) is promoting generation of electricity from various agro-residues including paddy husk. Targets of 400 megawatt biomass power projects for the 12th Plan period and 100 megawatt during the current financial year i.e. 2014-15 have been fixed by MNRE. This was stated by Sh. Piyush Goyal, Minister of state (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today.
           
            The Minister further Fiscal incentives such as accelerated depreciation, concessional customs duty, excise duty exemption, income tax holiday for 10 years and preferential tariff are provided for biomass power projects. In addition, the Central Financial Assistance of Rs.25.0 lakh per megawatt in special category states and Rs.20.0 lakh per megawatt for other states with a cap of Rs.1.50 crores per project is being provided by MNRE for setting up of the biomass power projects.

                The State-wise details of biomass power projects set up so far is given below:-

State-wise list of commissioned Biomass Power Project as on 30th October, 2014

S.No.
State
No. of Projects
Biomass Power
(MW)
1
Andhra Pradesh
41
288.00
2
Chhattisgarh
29
249.90
3
Gujarat
4
30.50
4
Haryana
2
13.50
5
Karnataka
15
107.50
6
Madhya Pradesh
4
26.00
7
Maharashtra
20
198.00
8
Orissa
1
20.00
9
Punjab
8
68.50
10
Rajasthan
10
101.00
11
Tamil Nadu
24
211.70
12
Uttar Pradesh
4
54.00
13
West Bengal
3
26.00

Total
165
1394.60

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Biomass Based Power Generation

The Ministry of New and Renewable Energy has been implementing a programme to support Grid-interactive biomass power and bagasse co-generation  in sugar mills in India.   Targets of 400 megawatt biomass power projects for the 12th Plan period and 100 megawatt during the current financial year i.e. 2014-15 have been fixed by MNRE. This was stated by Sh. Piyush Goyal, Minister of state (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today.
           
            The Minister further stated that the details of the Central Financial Assistance provided during last three years to set up  grid-connected biomass power/bagasse cogeneration projects in the States of Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh  is as follows :
(Rs. in crore)

Year
CFA Provided
2011-12
Rs.52.84
2012-13
Rs.56.25
2013-14
Rs.31.59
The promoters/project developer has to ensure supply of biomass for biomass based power generation projects, the Minister added.
Promotion of Solar Energy Promotion of Solar Energy Reviewed by Ajit Kumar on 8:42 PM Rating: 5

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