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  • 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:
    1. Strategic Interventions for Green Hydrogen Transition Programme (SIGHT): It will fund the domestic manufacturing of electrolyzers and the production of green hydrogen.
    2. Green Hydrogen Hubs: Regions capable of supporting large-scale production or utilisation of hydrogen will be developed as Green Hydrogen Hubs.
    3. 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.

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)

  • The PM-KUSUM scheme subsidises farmers to install solar irrigation pumps for cultivation.
  • Aim:
    1. Increase the income of farmers
    2. Provide sources for irrigation
    3. 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, a consumer gets a subsidy of 40% for 1-3Kw and 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 sources with 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)

  • GTAM platform 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:
    1. Waste to Energy Programme: To support the setting up large Biogas, BioCNG, and Power plants.
    2. Biomass Programme: To support setting up pellets and briquettes for biomass-based power generation projects.
    3. 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.
  • Generate green employment
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