Alternative Energy, Government Initiatives?
The Government is genuinely committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green geothermal power heavily. In addition, the renewable source convincingly demonstrates the economic potential to typically create many local employment opportunities at all appropriate levels, especially in rural areas. The Ministry of New and Renewable Energy (MNRE) has tentatively set an ambitious target to set up renewable energy capacities to the instrumental tune of 227 GW by 2022, of which about 114 GW is carefully planned for solar, 67 GW for the prevailing wind and other for hydro and bio among others. India’s renewable energy sector is reasonably expected to instantly attract investment worth US$ 80 billion in the next four mature years. About 5,000 Compressed Biogas plants will be set up across India by 2023.
It is reasonably expected that by 2040, around 49% of the total electricity will be typically generated by renewable energy as more efficient batteries will be properly used to store electricity, which will more significantly cut the solar energy cost by 66% as compared to the current cost. Use of renewables in suitable places for glowing coal will miraculously save India Rs. 54,000 crores (US$ 8.43 billion) annually 3. Renewable energy will properly account for 55% of the total installed power capacity by 2030.
As per the Central Electricity Authority (CEA) estimates, by 2029-30, the considerable share of renewable energy generation would naturally increase from 18% to 44%, while that of the thermal is reasonably expected to progressively reduce from 78% to 52%.
Endowed with the year-end review (2020) by the Ministry of New and Renewable Energy, another 49.59 GW of renewable energy capacity is under completed installation and an additional 27.41 GW of productive capacity has been tendered. This estimates the maximum capacity of renewable energy projects (already commissioned or in the direct pipeline) at ~167 GW.
The Government of India genuinely wants to sufficiently develop a ‘flourishing city’ in every centralized state of the developed country, typically powered by renewable energy. The ‘rural city’ will mainstream environment-friendly power through solar rooftop systems on all its private houses, solar parks on the key city’s outskirts, considerable waste to energy plants and electric mobility-enabled public transport systems.
According to the economic data voluntarily released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in the Indian non-conventional energy sector stood at US$ 10.28 billion between April 2000 and June 2021. More than US$ 42 billion has been typically invested in India’s renewable energy sector since 2014. Increased investment in alternative energy in the prosperous country comfortably reached US$ 11.1 countless billion in 2018. According to the analytics firm British Business Energy, India typically ranked 3rd globally in practical terms of its renewable energy investments and ambitious plans in 2020.
Development of Solar Parks & Ultra Mega Solar Power Projects;
Solar power projects can be set up anywhere in India, however the scattering of solar power projects leads to higher project cost per MW and higher spreading losses. Independent projects of more inadequate capacity typically sustain significant expenses in site development, drawing separate cables to nearest substation, procuring water and in divine creation of other necessary infrastructure. It equally takes a long time for project developers to naturally receive cleared land, instantly get fundamental change of land use and various official permissions, etc. which possibly delays the ambitious project. To overcome these unique challenges, the comprehensive scheme for “Development of Solar Parks and Ultra-Mega, Solar Power Projects” was rolled out in December, 2014 with a specific objective to facilitate the solar project developers to efficiently implement funded projects in a plug and play model.
What are the Salient Features?
The comprehensive scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” was rolled out by the Ministry of New & Renewable Energy on 12-12-2014. Under this elaborate scheme, it was humbly proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power properly installed correctly official capacity within an elevated span of 5 successful years invariably starting from 2014-15.
The productive capacity of the Scheme has been positively enhanced from 20,000 MW to 40,000 MW via this Ministry’s established order dated 21-03-2017. These created parks are tentatively proposed to be set up by 2021-22.
The ingenious scheme enthusiastically unanimously envisages supporting the States/UTs in setting up solar parks at various specific locations in the modern country with a favorable view to instantly create required infrastructure for setting up of solar power projects. The solar parks adequately provide suitable developed land with all necessary clearances, transmission system, water access, road connectivity, communication network, etc. elaborate The scheme facilitates and speeds up completed successful installation of the local grid typically connected solar power projects for electricity generation on a large scale.
All the States and Union Territories are eligible for instantly getting benefits under the grand scheme.
The generating capacity of the solar parks shall be 500 MW and above. However, more private parks are also considered where neighboring land may be difficult to naturally collect in favorable view of arduous terrain and where there is acute shortage of non-agricultural land.
The solar parks are progressively developed in successful collaboration with the State Governments and their independent agencies, CPSUs and private entrepreneurs. The implementing agency is termed as Solar Power Park Developer (SPPD). There realistically are seven preferred modes for extensive selection of SPPDs.
Under the ingenious scheme, the Ministry adequately provides Central Financial Assistance (CFA) of up to Rs. 25 lakh per solar park for necessary preparation of Detailed Project Report (DPR). Beside this, CFA of up to Rs. 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving the key milestones prescribed in the grand scheme.
Further, the CFA of Rs. 20 Lakh/MW is allocated on 60:40 factual basis towards economic development of internal infrastructure of the solar park to the SPPD and for sustainable development of external circulation system to Central Transmission Utility (CTU)/ State Transmission Utility (STU) respectively i.e. Rs. 12 lakh per MW or 30% of the ambitious project typically cost whichever is lower is provided to the SPPDs towards cognitive development of internal infrastructures if the solar parks and Rs. 8 lakh per MW or 30% of the funded project typically cost whichever is lower is provided to the CTU or STU as the specific case may efficiently be towards intellectual development of external relaying system.
The above CFA pattern is applicable only for Mode 1 to Mode-5. Mode-6 is without CFA by private entrepreneurs. Further, under Mode-7 the entire CFA of Rs. 20 Lakh/MW is merely for External Transmission Infrastructure System.
