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Indias Renewable Energy targets: yy While these are surely important incentives, in the
past they have not been sufficient for Indian states
yy Indias ambitious targets project that by 2020, 10% to meet their targets.
of its power shall come from renewable sources and
by 2022 there will be 165 gigawatts (GW) of RE
capacity installed.
yy Of this target capacity, there will be a 100 GW of
installed solar capacity, 60 megawatts (MW) from
wind and 5 MW from other sources such as small
hydro and bioenergy.
yy This implies that within the next five years, India
has to undertake the mammoth task of almost
doubling its RE contribution to the energy mix
from the current 6%.
Beyond Climate Change Mitigation:
yy The solar sector faces the largest challenge of scaling
up its capacity by almost 20 times in six years, from yy In order to have a complete idea of the electricity sector,
the current 4.7 GW. in addition to techno-economic considerations, a
yy Such tremendous growth can only be accomplished political perspective is also imperative.
through an effective policy and regulatory yy All the current dialogue on RE takes place under the
framework, which is essential to incentivise the Prime Ministers National Action Plan on Climate
deployment of RE. Change (NAPCC).
Indian RE Policy interventions:
yy This has a vital implication on how state governments
yy In India, RE policy interventions have not taken view RE deployment. The centres advice to focus on
such a holistic approach. RE implementation as a climate change mitigation
technique gives the states an incorrect message.
yy Current national policies such as preferential-grid
access, tax holidays, etc., only address techno- yy The fallout is that, states set incremental RE targets
economic barriers. often merely to comply with RPO targetsmandated
to them under NAPCC rather than as a tool to
yy In order to tackle these challenges, in addition to yy The findings suggest that there is a need for
government-owned systems, encouraging private subnational governments to play a more proactive
sector investments, rural entrepreneurship and role in RE deployment.
publicprivate ventures could be some of the better
yy National targets rooted in bottom-up assessments
ways of promoting decentralised generation.
from various states for a range of RE technologies
yy Accessing finance is currently difficult for RE would ease implementation as land allocation is a
technologies. Loans from RRBs and Indian key bottleneck.
Renewable Energy Development Agency (IREDA)
yy Since economic costs of renewable energy generation
are available at higher interest rates.
as well as integration are borne by the state, this
yy Soft loans are only available at RRBs for those who requires clean energy finance support to be available
have access to capital from a larger entity to promote for the state.
RE systems.
yy Central schemes are unable to cover all the needs
yy The lack of a road map for rural electrification of subnational electrification and state-level action
implies that there is no certainty on when a village road maps are a must.
might be electrified.
yy Financial and technical models, suitable for the local
yy Therefore, villagers might be unwilling to pay context would facilitate the adoption of renewable
developers in the hope that the grid will reach them. energy technologies.
The same uncertainty makes developers reluctant to
yy Indias high renewable targets are a step in the
set up a system.
right direction. However, how well India will
yy The government should mandate the setting up of fare eventually boils down to the extent to which
micro-grid based systems, and create a risk mitigation central and state actors priorities and institutional
plan, where developers can be compensated if the mechanisms are aligned.
grid is extended.
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