Indian Initiatives Shaping Energy Transition | 28 Jun 2021

Why in News

Recently, the Minister of State for New & Renewable Energy launched ‘The India Story’ booklet, a compilation of Indian initiatives that are shaping India’s energy transition.

• The booklet was launched at the event on Accelerating Citizen Centric Energy Transition organized by the Ministry of New and Renewable Energy (MNRE).
  
  • It was organized in collaboration with the Permanent Mission of India (PMI) to the United Nations and the Council on Energy, Environment and Water (CEEW).
• The Minister also launched a website which will act as a repository of energy transition related knowledge resources from around the world.

Key Points

• Growth of Renewable Sector:
  
  • In the last 6 years, India’s installed Renewable Energy (RE) capacity has increased by over two and a half times and stands at more than 141 Giga Watts (including large Hydro).
    
    • It is about 37% of the country’s total capacity.
  • The installed solar energy capacity has increased by over 15 times, and stands at 41.09 GW.
  • India’s RE capacity is the 4^th largest in the world. Its annual RE addition has been exceeding that of coal based thermal power since 2017.
• Ease of Investment in Renewables:
  
  • During the last 7 years, over USD 70 billion investment has been made in RE in India.
  • India has a very liberal foreign investment policy for renewables allowing 100% Foreign Direct Investment (FDI) through the automatic route in the sector.
    
    • Ease of doing business is India’s utmost priority.
  • Established dedicated Project Development Cells (PDC) and FDI cells in all Ministries for handholding and facilitating domestic and foreign investors.
    
    • PDCs have been established for the development of investible projects in coordination between the Central Government and State Governments and thereby grow the pipeline of investible projects in India and in turn increase FDI inflows.
  • Renewable Energy Investment Promotion and Facilitation Board (REIPFB) Portal:
    
    • It has been developed to provide one-stop assistance and facilitation to the Industry and Investors for development of projects and bringing new investment to the RE sector in India.
• Industry’s Commitment:
  
  • Several members from the Industry have voluntarily declared RE goals and committed to the Carbon Disclosure Project (CDP), Renewable 100% (RE100) and Science based targets (SBTs).
    
    • CDP is a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts.
    • SBTs are greenhouse gas reduction goals set by businesses.
• Green Tariff:
  
  • Rules are being framed for a 'green tariff' policy that will help electricity Distribution Companies (Discoms) supply electricity generated from clean energy projects at a cheaper rate as compared to power from conventional fuel sources.
    
    • Government is also promoting Green Hydrogen with obligations for Fertilizers and Refining industries (Green Hydrogen Purchase obligations).
• Initiatives to Increase Investment in Renewables:
  
  • Viability Gap Funding options for Offshore Wind Energy.
  • Green Term Ahead Market and Green Day Ahead Market.
  • Rules for facilitating RE through Open Access.
  • RE procurement through exchanges will also be notified to promote non - conventional resources of energy.

Source: PIB