Context (PIB| PIB): The Ministry of Natural and Renewable Energy (MoNRE) has taken several steps to smooth a transition to renewable energy and increase production.
Steps Taken by MoNRE
National Green Hydrogen Mission (NGHM)
It aims to incentivise green hydrogen commercial production and position India as a net fuel exporter.
Sub-schemes of NGHM:
Strategic Interventions for Green Hydrogen Transition Programme (SIGHT): It will fund the domestic manufacturing of electrolyzers and the production of green hydrogen.
Green Hydrogen Hubs: Regions capable of supporting large-scale production or utilisation of hydrogen will be developed as Green Hydrogen Hubs.
Strategic Hydrogen Innovation Partnership (SHIP): It is a PPP framework for R&D.
Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolysis process powered by renewable energy (like wind and solar).
Electrolysis means passing an electric current through a substance to induce a chemical change.
Production Linked Incentive (PLI) Scheme for National Programme High-Efficiency Solar PV Modules
National Programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India and reduce import dependence.
PLI Scheme for National Programme on High-Efficiency Solar PV Modules is being implemented to achieve Giga Watt (GW)-scale manufacturing capacity in high-efficiency solar PV modules.
Production Linked Incentive (PLI) Scheme
PLI scheme incentivises companies for incremental sales of domestically manufactured products.
The scheme aims to attract foreign and domestic investment.
The concerned Ministries/Departments will implement the PLI schemes.
It is implemented across 14 key sectors; the high-efficiency solar PV module is one.
The PM-KUSUM scheme subsidises farmers to install solar irrigation pumps for cultivation.
Aim:
Increase the income of farmers
Provide sources for irrigation
De-dieselising the agricultural sector
Grid Connected Solar Rooftop Programme
The scheme aims to generate solar power by installing solar panels on the roofs of houses.
Under the Phase II, aconsumer gets a subsidy of 40% for 1-3Kwand 20% for above 3Kw capacity.
CPSU Scheme Phase II (Government Producer Scheme)
The scheme aims to set up grid-connected Solar Photovoltaic (PV) Power Projects by Central and State PSUs and government organisations.
The power produced is self-used or used by Government/ Government entities directly or through Distribution Companies (DISCOMs).
Solar Parks and Ultra Solar Power Projects
A solar park is a large land area with shared infrastructure such as transmission facilities, roads, water, drainage, communication networks, and necessary statutory clearances.
The scheme aimed to establish a minimum of 25 Solar Parks and Ultra Mega Solar Power Projects.
The scheme’s capacity was enhanced from 20,000 MW to 40,000 MW.
These parks are proposed to be set up by 2025-26.
Green Energy Corridor (GEC) Scheme
GEC was launched to synchronise electricity produced from renewable sourceswith conventional power stations in the grid.
It comprises both Inter State Transmission System (ISTS) and Intra State Transmission System (InSTS), along with the setting up of a Renewable Energy Management Centre (REMC).
Green Term Ahead Market (GTAM)
GTAMplatform provides access to the pan-India market of renewable energy (RE).
The benefits are:
Allow additional avenues to the RE generators for the sale of RE
Enable Obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO)
Provide a platform for environmentally conscious consumers and utilities to buy green power.
Renewable Purchase Obligation (RPO)
The Electricity Act 2003 (EA 2003) and the National Tariff Policy 2006 mandates RPO.
RPOs are categorised as Solar and Non-Solar RPOs.
RPO mandates obligated entities to procure a specific percentage of electricity from Renewable Energy sources relative to their total consumption.
Obligated Entities include Discoms, Open Access Consumers and Captive power producers.
National Bioenergy Programme
This programme provides Central Financial Assistance (CFA) for power generation, Biogas/BioCNG generation, and briquette/pellet manufacturing, wherein biomass is one of the major feedstock materials, which shall primarily be sourced from rural areas.
It comprises of the following sub-schemes:
Waste to Energy Programme: To support the setting up large Biogas, BioCNG, and Power plants.
Biomass Programme: To support setting up pellets and briquettes for biomass-based power generation projects.
Biogas Programme: To support setting up family- and medium-sized biogas in rural areas.
Pumped Storage Projects
Pumped Storage Hydropower (PSH) is a hydroelectricity storage system.
Recognising their significant role in grid stabilisation and addressing peak power demand, guidelines have been formulated to promote Pumped Storage Projects (PSPs)
MoNRE seeks to promote PSPs across the country with proactive support of the State Governments.
Other Steps Taken
Permitting Foreign Direct Investment (FDI) up to 100% under the automatic route.
Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025.
Benefits of these Steps Taken
Help achieve net-zero target by 2070: It is one of the Panchamrit presented by India in COP26.
Justify India’s position in COP28:India has refrained from signing the pledge to triple the world’s renewable energy capacity by 2030 because it wanted a smooth transition to renewables rather than a drastic one. These steps will help to achieve it.
Solve infrastructure issues: e.g., Green Energy Corridor
Address grid stabilisation issue: Renewable energy like wind, solar, and hydro are seasonally available, so they cannot be trusted as a constant energy source. However, steps like Pumped Storage Projects help store this energy and regulate its use.
Attract private players: e.g. PLI Scheme for National Programme High-Efficiency Solar PV Modules
Lower carbon footprint: Around 57% of the electricity is fossil fuel-based.