Finance

Government incentives driving state-owned enterprises’ investment away from the soon-to-be stranded fossil fuel based assets are a way of further boosting investment in the renewable energy sector.

Launched in November 2015, the alliance aims to collectively address key challenges to the scaling up of solar energy in member countries that fall between Tropic of Cancer and Tropic of Capricorn. Out of 121 prospective member countries, over 83 have already joined it in a period of just four years.

Following equity injection of about Rs 5169 million, Singapore-based integrated energy player has signed an agreement to invest another Rs 4060 million in Sembcorp Energy India Ltd to gain complete control over it and pursue growth in the India renewable energy business.

Commercial and industrial (C&I) sector consumes 51% of the total electricity generated in India, with a mere 3% of this consumption coming from renewable energy. To increase renewable energy uptake among C&I consumers, India needs to explore new models like virtual power purchase agreements, green tariffs, internationally tradable RECs that have already been successfully tried and tested in many countries—according to a report by climate advocacy group WWF India.

Program aims to drive down the cost of solar electricity to a maximum of Rs2.50/kWh in a nation where tariffs vary wildly from state to state.

The government has supported 425 electric buses on pilot basis since the launch of FAME India [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] scheme that—in its second phase—aims to support (through incentives) about 7000 e-buses over a period of three years commencing from April 1, 2019.

The investment will be used to establish an extra-high-voltage transmission link between Virudhunagar and Coimbatore to transfer the additional generation capacity of 9 GW, including 6 GW from renewables, by 2025 to meet the increased power demand in the Chennai–Kanyakumari Industrial Corridor.

The platform connects credible renewable energy projects with investors, and has already delivered 5 MW of energy to a range of companies in Southern India and Rwanda.

The investment—part of a $592 million assistance package—will be used to promote adoption of smart meters, distributed solar photovoltaic systems and e-vehicles in India.

Apart from thrust on energy efficiency and clean energy, the new policy will focus on Make in India for cells used in electric vehicle batteries and measures for demand creation and incentivizing investments.