MNRE refutes CRISIL report casting doubt on achievement of ‘175 GW by 2022’ target

India’s Ministry of New and Renewable Energy (MNRE) has refuted the claims made by a CRISIL report that India may fall short of its declared renewable energy target of 175 GW by the year 2022.

“The doubts are ill-founded and not reflective of the status on the ground and plans ahead. The CRISIL report is neither factually correct nor takes into account initiatives taken by the MNRE to facilitate accelerated development and deployment of renewable energy in the country. This report lacks in credibility in all respects as CRISIL did not even bother to consult this Ministry for its views,” said the ministry.

The Ministry is not only confident of meeting 175 GW target but exceeding it by 2022.

“By the end of September 2019, India has installed more than 82,580 MW of renewable energy capacity with around 31,150 MW of capacity under various stages of installation. Thus, by the first quarter of 2021, India would have installed more than 113 GW of renewable power capacity. This would constitute nearly 65% of the targeted capacity”—the MNRE stated.

“Besides this, around 39 GW of renewable power capacity is at various stages of bidding, which would be installed by September 2021, taking the percentage of installed capacity to over 87% of the targeted capacity. With only 23 GW of renewable power capacity left to bid, India is confident that the target of installing 175 GW of renewable power capacity will not only be met but exceeded,” it added.

The Ministry stated that it has worked systematically to resolve various issues that arise from time to time, putting in place facilitative and ease of doing business policies and programmes for achieving the goal. These initiatives have resulted in significant downward trend in solar and wind power tariffs.

The wind power tariffs has fallen from Rs4.18 per unit in 2016 to Rs2.43 per unit during last year and even today it remains below Rs2.75 per unit. Similarly, the solar tariffs have fallen from Rs4.43 per unit (with VGF) to Rs.2.44 per unit. The Government of India’s endeavour remain that renewable power is procured at a rate which is acceptable to distribution companies.

138% growth in 5 years

Since March 2014, India’s renewable power capacity has increased from 34000 MW to 82,580 MW, recording 138% growth. Globally, India stands 5^th in solar power, 4^th in wind power, and 4^th in total renewable power installed capacity. If large hydro included, India stands 3^rd in renewable power capacity globally. India’s renewable energy programme is much beyond production of electricity and covers a basket of applications including use of solar thermal energy for cooling, heating, drying and other industrial applications. Renewable energy has emerged as a true multi-benefit system, combining ecological necessities with domestic priorities, economic and job creation opportunities.

Plans afoot

The Ministry in consultation with the respective state governments is addressing the issues of allocation of land in Gujarat and revision of land facilitation charges in Rajasthan. Plan for erecting 66,500 MW of additional transmission system to ensure evacuation and injection of 1,75,000 MW of power into the main grid is under implementation. The additional transmission would come by October 2021 in phases depending on location based requirements.

Also, the Ministry is in the process of developing Ultra Mega Renewable Energy Parks to overcome the problem of land allocation. These parks will have dedicated transmission. First such park is being planned in Dholera, Gujarat by SECI.

These apart, the Ministry has strengthened power purchase agreement clauses for strengthening investors’ confidence. For mitigating off-takers risk and ensuring timely payments to developers, the Ministry has made letter of credit must for purchase of power by distribution companies.