Why in news?
- The Indian Renewable Energy (RE) sector has witnessed history today, as the e-Reverse Auction(e-RA) for 400 MW RE (Renewable Energy) Projects with Round the Clock (RTC) supply, was concluded at an astounding first year tariff of Rs.2.90/kWh.
- The bidding was conducted by Solar Energy Corporation of India Ltd., a Central PSU under Ministry of New and Renewable Energy.
- MNRE makes a new beginning towards firm, schedulable & affordable RTC supply through 100% RE power.
- What makes the tariff a historic one, is the fact that this tender provides for a Round the Clock energy supply from 100% RE based energy generation sources, such as wind and solar PV, combined with storage.
- This tariff offers a much better proposition for the Disocms to meet their energy demand through 100% RE supply.
- The developer will be provided a maximum time period of 24 months from the Effective Date of PPA.
- There was no ceiling tariff for the Projects, and the developers are free to set up the project on a Pan-India basis.
- The projects under this tender will be set up under the Build-Own-Operate model.
- The tender therefore achieves a major milestone towards the MNRE’s and SECI’s efforts in realizing a firm, assured schedulable RE power supply model, which may inevitably, replace a conventional project, at a more viable tariff.
Renewable Energy in India
- As of 31 March 2020, 35.86% of India’s installed electricity generation capacity is from renewable sources, generating 21.22% of total utility electricity in the country.
- In the Paris Agreement, India has committed to an Intended Nationally Determined Contributions target of achieving 40% of its total electricity generation from non-fossil fuel sources by 2030.
- Government of India has also set a target for installation of Rooftop Solar Projects (RTP) of 40 GW by 2022 including installation on rooftop of houses.
- India was the first country in the world to set up a ministry of non-conventional energy resources (Ministry of New and Renewable Energy MNRE), in the early 1980s.
- Hydroelectricity is administered separately by the Ministry of Power and not included in MNRE targets.
- India’s public sector undertakings the Solar Energy Corporation of India is responsible for the development of solar energy industry in India.
- India is the 7th largest producer of hydroelectric power in the world.
- India is an ideal environment for Biomass production given its tropical location and abundant sunshine and rains and the country’s vast agricultural potential provides huge agro-residues which can be used to meet energy needs.