The government has set an ambitious target of achieving 40 percent cumulative electric power through non-fossil fuel based energy resources sources by 2030, and an installation of 175 GW of renewable energy source by 2022.
In order to meet the tall order set for clean energy, the Ministry of New and Renewable Energy (MNRE) has taken several steps and has introduced several policy measures in addition to providing financial support to various schemes. These include, inter alia, suitable amendments to the Electricity Act and Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO); setting up of exclusive solar parks; development of power transmission network through Green Energy Corridor project; provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities; among others.
The year 2017 witnessed historic low tariffs for solar and wind project. The solar tariff declined to the lowest of Rs 2.44 / unit and wind reaching lowest tariffs of Rs 2.64/ unit.
However, the fresh investment in solar projects from April to December 2017 declined on the back of introduction of GST; new import duty on solar modules from China, Taiwan and Malaysia; insistence on re-opening the PPAs already signed by some discoms.
Budget 2017-18:
The Budget proposed taking up of the second phase of Solar Park development for additional 20,000 MW capacity. It was proposed to feed about 7,000 stations with solar power in the medium term. Budgetary allocation for MNRE was increased by 9 percent to Rs.54.73 billion (~USD 809.93 million).
