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					</table><p><a href="https://www.mercomindia.com/expedite-efforts-repower-old-wind-turbines" target="_blank" rel="noopener"><strong>The Parliamentary Standing Committee on Energy urged the Ministry of New and Renewable Energy to expedite the approval and implementation of the revised policy on repowering old wind turbines.</strong></a> In a report on the evaluation of wind energy in India, presented to the Lok Sabha recently, the Committee said most of the wind energy potential is concentrated in eight states and suggested retiring old, inefficient wind turbines occupying prime wind sites. It recommended replacing the old turbines with advanced, more efficient ones to maximize natural resources and land usage.</p>
<p><a href="https://www.mercomindia.com/indias-solar-module-ten-fold-within-a-decade" target="_blank" rel="noopener"><strong>India’s solar module manufacturing capacity witnessed a staggering tenfold growth, soaring from 2.4 GW per annum in 2014 to an impressive 25 GW per annum in 2023.</strong></a> Additionally, the country has installed an indigenous solar cell manufacturing capacity of 6 GW/annum over the past nine years, underlining its commitment to domestic innovation, said the Union Minister for Power and New &amp; Renewable Energy R. K. Singh. The country has continued its push to ensure the domestic solar manufacturing sector is well established to cut the import dependency.</p>
<p><strong><a href="https://www.mercomindia.com/rerc-grants-solar-developer-compensation-duties" target="_blank" rel="noopener">Rajasthan Electricity Regulatory Commission has directed the Solar Energy Corporation of India to compensate Palimarwar Solar House for the higher expenses</a></strong> incurred on developing two 20 MW solar projects due to an increase in customs duty on solar inverters and changes to the Customs Tariff Act. Palimarwar Solar House was one of the successful bidders in an auction conducted by SECI. The company commissioned two solar projects, each with a capacity of 20 MW, in Barmer, Rajasthan.</p>
<p><a href="https://www.mercomindia.com/qatar-investment-authority-shares-adani-green" target="_blank" rel="noopener"><strong>INQ Holdings, a wholly owned subsidiary of the Qatar Investment Authority, acquired a significant stake in Adani Green Energy (AGEL) by purchasing 42.6 million shares.</strong></a> The transaction took place at a price of ₹920 (~$11.11) per share, taking the total transaction value to ₹39.2 billion (~$472 million). INQ bought the shares after Infinite Trade and Investment, a stakeholder of Adani Green, divested 44.88 million shares in the company for ₹41.3 billion (~$498 million).</p>
<p><a href="https://www.mercomindia.com/icici-bank-lends-financing-portfolio-in-fiscal-2023" target="_blank" rel="noopener"><strong>ICICI Bank has provided loans amounting to ₹556 billion (~$6.7 billion) to sectors like renewable energy, electric vehicles, and green-certified real estate, among other important lending areas in the fiscal year 2023.</strong></a> In its environmental, social, and governance report, ICICI Bank said the portfolio dedicated to green financing constituted 21.4% or ₹119 billion (~$1.4 billion) of the total amount lent. The bank also subscribed to India’s inaugural issue of sovereign green bonds during fiscal 2023.</p>
<p><a href="https://www.mercomindia.com/wind-turbine-component-failures-result-in-steep-q3-loss-for-siemens-gamesa" target="_blank" rel="noopener"><strong>Spain-based wind turbine maker Siemens Gamesa’s net loss stood at €2.56 billion (~$2.8 billion) during the third quarter of the financial year 2023, a year-over-year (YoY) increase in losses of 458% from a loss of €405 million (~$443.4 million).</strong></a> The company recorded a revenue of €2.05 billion (~$2.2 billion), a 16% YoY decrease. Siemens Gamesa attributed the decrease in revenue to the reversal of income and the profit before special items facing a burden of expenses amounting to €2.2 billion (~$2.4 billion), including €1.6 billion (~$1.7 billion) linked to quality problems concerning specific onshore platforms.</p>
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Daily News Wrap-Up: MNRE Urged to Expedite Efforts to Repower Old Wind Turbines


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					</table><p>The Parliamentary Standing Committee on Energy has urged the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) to expedite the approval and implementation of the revised policy on repowering old wind turbines.</p>
<p>In a report on the evaluation of wind energy in India, presented to the Lok Sabha recently, the Committee said most of the wind energy potential is concentrated in eight states and suggested retiring old, inefficient wind turbines occupying prime wind sites.</p>
<p>It recommended replacing the old turbines with advanced, more efficient ones to maximize natural resources and land usage.</p>
<p>In response, MNRE acknowledged the <a href="https://niwe.res.in/" target="_blank" rel="noopener">National Institute of Wind Energy</a>&#8216;s estimation of a repowering potential of 25,406 MW for wind turbines below 2 MW capacity. It recalled that a repowering policy was issued in 2016, and a revised policy has been prepared based on <a href="https://www.mercomindia.com/mnre-seeks-comments-on-repowering-wind-projects" target="_blank" rel="noopener">stakeholder feedback</a>.</p>
<p>The revised policy aims to maximize energy yield per unit area and utilize state-of-the-art onshore wind turbine technologies. The final policy is pending approval.</p>
<p>The ministry also provided insights into the recyclability of wind turbine components and highlighted guidelines for the disposal of thermoset plastic waste.</p>
<p><strong>Offshore Wind Projects</strong></p>
<p>The Standing Committee acknowledged the untapped wind energy potential off the coasts of Gujarat and Tamil Nadu, stressing the higher Capacity Utilization Factor of offshore projects compared to onshore ones.</p>
<p>Despite higher initial costs, the committee suggested that decreasing trends in offshore project costs globally and the imperative to achieve renewable energy targets make establishing offshore wind projects essential. It also proposed proper environmental impact assessments, Viability Gap Funding (VGF), and the development of associated transmission infrastructure for power evacuation.</p>
<p>MNRE estimated an initial phase potential of about 70 GW off the Gujarat and Tamil Nadu coasts. It referred to deploying a mesoscale wind speed map, installing LiDAR (Light Detection and Ranging) equipment, and preparing studies for offshore wind potential assessment.</p>
<p>The ministry said it had issued a &#8216;Strategy Paper for Offshore Wind Development,&#8217; encompassing a bidding trajectory of 37 GW capacity by 2030. It had also submitted a concept note for an ₹156.08 billion (~$1.88 billion) VGF program for 3 GW offshore capacity for approval.</p>
<p>In addition, MNRE highlighted the Central Transmission Utility&#8217;s planning of transmission infrastructure for an initial 10 GW offshore capacity. It also referred to issuing draft tender documents for sea-bed lease rights allocation and ongoing stakeholder consultations.</p>
<p><strong>Exploitation of Wind Energy Potential</strong></p>
<p>In response to the committee’s observation about the underutilization of wind energy potential, the ministry highlighted steps to promote wind energy, including trajectory for Wind Renewable Purchase Obligation, concessions on customs duty, and policies for repowering and offshore wind development.</p>
<p>About issues related to aggressive bidding and developers backing out of projects, the government said guidelines and provisions for penalties and consequences in the bidding process had been issued in case of default. Provisions include the encashment of performance bank guarantee and debarring developers for not executing projects on time.</p>
<p><strong>RPO Compliance</strong></p>
<p>The standing committee referred to non-compliance of renewable purchase obligation (RPO) targets by several states and recommended that MNRE actively pursue state regulatory commissions for enforcing RPO compliance and penalties against defaulting entities.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable sector.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Parliamentary Panel Asks MNRE to Expedite Efforts to Repower Old Wind Turbines


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					</table><p><strong><a href="https://www.mercomindia.com/solar-share-installed-power-capacity-q2-2023" target="_blank" rel="noopener">Solar power accounted for 15.9% of India’s total installed power capacity and 38.3% of the total installed renewable capacity in the second quarter of 2023, up from 14% and 35.4% year-over-year.</a></strong> India’s installed renewable energy capacity, including large hydro projects, stood at 173.5 GW, accounting for a 41.4% share of the overall power capacity mix at the end of the quarter, according to data from the Central Electricity Authority, Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker. The renewable energy share in the cumulative power mix increased marginally from 170.3 GW quarter-over-quarter, representing 37.9 % of the overall power capacity mix.</p>
<p><a href="https://www.mercomindia.com/parliament-panel-renewable-finance-obligation" target="_blank" rel="noopener"><strong>Parliament’s Standing Committee on Energy has asked the government to explore the possibility of prescribing Renewable Finance Obligations along the lines of Renewable Purchase Obligations</strong></a> for banks and financial institutions to devote a specific percentage of their investment to the Indian renewable energy sector. In its latest report, ‘Financial Constraints in Renewable Energy Sector,’ the Committee said the Ministry of New and Renewable Energy should look at setting up a green bank system to address the persisting finance-related challenges faced by the renewable energy sector in India.</p>
<p><a href="https://www.mercomindia.com/allow-private-sector-to-mine-critical-minerals" target="_blank" rel="noopener"><strong>The government introduced a Bill in the Lok Sabha to amend the Mines and Minerals (Development and Regulation) Act to allow the private sector to explore and mine critical minerals</strong></a> used in the energy sector. The proposed legislation seeks to introduce an exploration license for critical and deep-seated minerals. It plans to remove six atomic minerals, such as lithium, titanium, and zirconium-bearing minerals, from the list of reserved minerals. These minerals play vital roles in space industries, electronics, communications, energy sectors, and electric batteries, making them crucial for India’s net-zero emission commitment.</p>
<p><a href="https://www.mercomindia.com/recs-profit-up-21-yoy-q1-fy-2024" target="_blank" rel="noopener"><strong>REC Limited, a government-owned infrastructure finance company, posted a net profit of ₹29.61 billion (~$361.12 million) in the first quarter (Q1) of the financial year 2024</strong></a>, an increase of 21% year-over-year from ₹24.47 billion (~$298.44 million). The numbers marked the company’s highest-ever profit in the first quarter of any financial year. The increase in profit was attributed to improving asset quality and effective cost management. The company’s revenue from operations in Q1 stood at ₹109.59 billion (~$1.34 billion), a rise of 16%, compared to ₹94.59 billion (~$1.15 billion) during the same period last year.</p>
<p><a href="https://www.mercomindia.com/west-bengal-tender-900-mw-pumped-storage-project" target="_blank" rel="noopener"><strong>West Bengal Power Department has invited bids to develop, and commission 900 MW pumped storage projects on a design, build, finance, operate, and transfer basis on the Bandu reservoir in Purulia,</strong></a> West Bengal. The project will be divided into four capacities of 225 MW each. The total project cost is estimated to be ₹47 billion (~$573.6 million). The last day to submit the bids is August 28, 2023. Bidders must furnish a bid security of ₹500 million (~$6.1 million).</p>
<p><a href="https://www.mercomindia.com/maharashtra-bids-50-mw-grid-connected-solar-projects" target="_blank" rel="noopener"><strong>Mahatma Phule Renewable Energy and Infrastructure Technology has invited bids for the installation and commissioning of 50 MW of grid-connected solar power projects along with the associated transmission</strong></a> lines up to the point of interconnection in the Sangli district of Maharashtra. The successful bidder will also have to take care of the project’s operation and maintenance for five years. The projects will be developed in the Sangli district’s Kundalpur, Tisangi, Rajuri, and Ghatnandre villages.</p>
<p><a href="https://www.mercomindia.com/sunnovas-q2-loss-100-million-soaring-interest-expenses" target="_blank" rel="noopener"><strong>U.S.-based residential solar firm Sunnova’s net loss widened to $100.8 million during the second quarter of 2023, a year-over-year (YoY) increase of 628.6% compared to a net loss of $13.8 million.</strong></a> The rise in net loss was attributed to an increase in interest expense, amounting to $32.4 million, and higher general and administrative expenses. However, there was a partial offset due to a $13 million increase in interest income resulting from a larger customer loan portfolio. Revenue surged to $166.4 million, an increase of $19.4 million YoY.</p>
<p><a href="https://www.mercomindia.com/renew-gentari-enter-jv-renewable-assets-in-india" target="_blank" rel="noopener"><strong>Independent renewable power producer ReNew signed a 50:50 joint venture agreement with clean energy solutions provider Gentari to develop solar, wind, and energy storage assets</strong></a> to achieve a clean power capacity target of 5 GW in India. The partnership follows Gentari’s initial investment for a 49% equity stake in ReNew Power’s 403 MW power project that the latter announced in May this year. The partnership will help Gentari expand its renewable energy portfolio and support its target to build more than 30 GW of renewable energy capacity by 2030 globally.</p>
<p><a href="https://www.mercomindia.com/aluminum-anodes-show-promise-powerful-batteries" target="_blank" rel="noopener"><strong>A team of researchers from the Georgia Institute of Technology has taken a novel approach, utilizing aluminum foil to create solid-state batteries with increased energy density and stability</strong></a> compared to the widely used lithium-ion technology. Unlike traditional lithium-ion batteries, solid-state batteries utilize solid materials as electrolytes, eliminating the flammable liquid electrolyte and significantly reducing the risk of fires. Furthermore, solid-state batteries allow for integrating new high-performance active materials, paving the way for innovative battery designs.</p>
<p><a href="https://www.mercomindia.com/china-solar-capacity-q2-2023-up-153-yoy" target="_blank" rel="noopener"><strong>China installed 44.8 GW of solar power in the second quarter of 2023, a 153% year-over-year growth, according to the National Energy Administration.</strong></a> The country’s cumulative solar installations stood at 471 GW at the end of the quarter. In the first half of the year, China installed a renewable energy capacity of 109 GW, accounting for 77% of the country’s newly installed capacity. This included 5.4 GW of hydropower, 22.9 GW of wind, 78.4 GW of solar, and 1.7 GW of biomass.</p>
<p><a href="https://www.mercomindia.com/use-solar-water-purification-electrochemical-separation" target="_blank" rel="noopener"><strong>Chemists at the University of Illinois Urbana-Champaign have taken a significant step towards a greener future for water remediation, where they have demonstrated the integration of solar energy</strong></a> into an electrochemical separation process. The researchers said the discovery opens doors to potentially power such applications entirely with renewable energy sources. Electrochemical separation, or electrochemical desalination, is a promising technique for purifying contaminated water and environmental remediation.</p>
<p><a href="https://www.mercomindia.com/ministry-transmission-line-evacuate-1-5-gw-solar-karnataka" target="_blank" rel="noopener"><strong>The Ministry of Power has approved a request from Gadag II-A Transmission (a wholly-owned subsidiary of ReNew Transmission Ventures) to set up overhead transmission lines for 1,500 MW</strong></a> of solar projects in Gadag, Karnataka. The transmission lines will be set up under the &#8216;Transmission Plan for Solar Energy Zone in Gadag (1,500 MW), Part A-Phase II.&#8217; The approval for the overhead lines has been granted for 25 years. The program covers the 400 kV DC transmission line between the Gadag and Koppal pooling stations.</p>
<p><a href="https://www.mercomindia.com/gridseve-raises-682-million-expand-ev-network-uk" target="_blank" rel="noopener"><strong>UK-based electric vehicle charge point operator GRIDSERVE Sustainable Energy (GRIDSERVE) has raised a total of £526 million (~$682 million) in green infrastructure financing to accelerate its e-mobility</strong></a> expansion in the country. The financing comprises £326 million (~$423 million) in committed loan facilities, with a further £200 million (~$259.5 million) uncommitted accordion facility that the company has reserved for future assets. The £326 million facility consists of a £300 million (~$389 million) term loan, a £10 million (~$13 million) working capital facility, and a £16 million (~$21 million) value-added tax facility.</p>
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Daily News Wrap-Up: Solar Accounts for 16% of India’s Installed Power Capacity


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					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> is considering cutting the tenure of prospective long-term power purchase agreements (PPAs) to 12-15 years from the extant 25 years to provide more flexibility to the power distribution companies (DISCOMs) and promote the power trading markets further.</p>
<p>The ministry told the parliamentary standing committee on energy that it was considering amendments to the model PPA. The committee’s report was tabled in the Lok Sabha during its winter session.</p>
<p>The ministry’s reply came in response to the committee’s suggestions that a solution should be worked out for DISCOMs that are saddled with PPAs with a much higher tariff than the current market prices, which weighed down their financial performance.</p>
<p>Further, the power ministry said that it had already taken steps to transition to a shorter duration PPA regime, including providing the states with an option to exit PPAs signed with central generation stations on the completion of their tenure.</p>
<p>The ministry added that the move would ensure that generators are free to sell their power in the market while easing the financial burden on DISCOMs by releasing them from paying the high fixed charges without utilizing the capacity of old power projects.</p>
<p>The ministry said it was also considering a scheme for pooling power from the generating stations, which have completed 25 years. The program is intended to facilitate enhanced transactions through power exchanges.</p>
<p>The power ministry was replying to the committee’s observations that power exchanges were not robust enough currently, as only 5% of the total electricity generated was being procured through the exchanges.</p>
<p>Separately, while the committee advocated shorter PPA tenures, it said that maintaining the sanctity of contracts was crucial to building the confidence of all the stakeholders in the industry and fundamental for bringing investment into the sector.</p>
<p>“Renegotiation of PPAs unless mutually decided by the contracting parties is not desirable as it sends adverse signals to future investment,” it said.</p>
<p>In the past, DISCOMs have reneged on PPAs and even forced developers to renegotiate tariffs. It has threatened the sanctity of the contracts and imperiled investments in the sector.</p>
<p>For instance, the Appellate Tribunal for Electricity (<a href="https://aptel.gov.in/" target="_blank" rel="noopener">APTEL</a>) recently <a href="https://mercomindia.com/aptel-favor-solar-developers-strikes-down-reduction-tariff/" target="_blank" rel="noopener">disallowed</a> a unilateral reduction in tariff imposed by Uttar Pradesh DISCOMs, which the state regulatory commission further upheld.</p>
<p>In 2019, the Andhra Pradesh government decided to <a href="https://mercomindia.com/solar-wind-ppa-serc-andhra-pradesh/" target="_blank" rel="noopener">revisit</a> the PPAs to bring down the tariff agreed upon by the parties in the contract.</p>
<p>The ministry assured the committee that states had been advised that the appropriate electricity commissions should ensure compliance with PPAs to maintain the sanctity of concluded contracts, which is essential to the foundation of the growth of the Indian electricity sector.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/sumit-jha/" class="vcard author" rel="author"><span class="fn">Sumit Jha</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt"><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="50" /><strong style="text-decoration: underline">Sumit Jha,</strong> Assistant Managing Editor at Mercom India</div>
<div class="designboxt"><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener">More articles from Sumit Jha.</a></div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener"><strong style="color: #00b451">Sumit Jha </strong></a>is the Assistant Managing Editor at Mercom India. Prior to Mercom, Sumit worked as a journalist for over a decade, covering the energy sector for Reuters, CNBC-TV18, Bloomberg TV India, and Financial Express, among others. Sumit holds a diploma in print journalism from the Indian Institute of Mass Communication, Delhi, and a Bachelor of Engineering (B.E) from Manipal Institute of Technology.<a href="https://mercomindia.com/author/sumit-jha/" rel="noopener noreferrer">More articles from Sumit Jha</a></div>
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Power Ministry Mulls Shorter PPA Tenure to Help DISCOMs and Power Markets

<p>With more than 66 GW of renewable energy capacity connected to India’s national grid, the country’s renewable industry continues to grow at a fast pace but the transmission infrastructure needed to facilitate the growth of renewable energy generating projects in India remains a question.</p>
<p>As of April 2018, India’s cumulative installed solar capacity was 22.5 GW, according to <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">Mercom’s India Solar Project Tracker</a> and Ministry of New and Renewable Energy (MNRE) data indicates that wind installations have crossed the 34 GW mark.</p>
<p>There is growing skepticism on whether India’s <a href="https://mercomindia.com/grid-infrastructure-india-solar-wind-tenders/" target="_blank" rel="noopener">transmission infrastructure</a> is equipped to handle the influx of new intermittent renewable power generation. The nation’s increasing renewable energy capacity has recently prompted a number of states to propose deviation charges anticipating challenges in integrating intermittent renewables onto the grid. These states include <a href="https://mercomindia.com/haryana-draft-regulations-deviation-charges/" target="_blank" rel="noopener">Haryana</a>, <a href="https://mercomindia.com/solar-wind-generators-pay-deviation-charges-production-andhra-pradesh/" target="_blank" rel="noopener">Andhra Pradesh</a>, <a href="https://mercomindia.com/gerc-issues-draft-regulations-focus-large-scale-grid-integration-solar-wind-2017/" target="_blank" rel="noopener">Gujarat</a>, <a href="https://mercomindia.com/maharashtra-deviation-charges-solar-wind/" target="_blank" rel="noopener">Maharashtra</a>, and <a href="https://mercomindia.com/tamil-nadu-developers-solar-wind/" target="_blank" rel="noopener">Tamil Nadu</a>.</p>
<p>To address the lack of grid infrastructure, a comprehensive plan comprising transmission as well as control infrastructure was identified as a part of the <a href="https://mercomindia.com/can-green-energy-transmission-corridor-development-keep-rapid-renewable-energy-growth-india/" target="_blank" rel="noopener">Green Energy Corridors</a>, which includes an intra-state and inter-state transmission system to strengthen the infrastructure, and establishment of renewable energy management centers (REMC) at state, regional, and national load dispatch center levels.</p>
<p>The Green Energy Corridor project was estimated to be complete by 2022 but according to many in the industry is running behind schedule. Mercom <a href="https://mercomindia.com/green-energy-corridor-underfunded/" target="_blank" rel="noopener">recently reported</a> that the Standing Committee on Energy is apprehensive about whether the Green Energy Corridor target is attainable.</p>
<p>The Standing Committee observed, “The cumulative target of achieving 3,000 circuit kilometers (ckt-kms) of transmission lines by March 2019, leaves 5,500 ckt-kms of transmission lines to be installed during 2019-20, to reach the stipulated cumulative target of 8,500 ckt-kms of installed transmission lines for the Green Energy Corridor by March 2020.”</p>
<p>Considering the recent surge in government-issued tenders for the inter-state transmission system  (ISTS) to connect solar and wind projects, the need for a robust grid infrastructure is becoming more important than ever.</p>
<p>Due to the unavailability of evacuation facilities, project developers have already been suffering as they are not able to get the authorization to utilize connection bays. Connection bays are important for power generating projects, as without them evacuation cannot take place.</p>
<p>In September last year, Power Grid Corporation of India (PGCIL) filed a petition against renewable companies asking Central Electricity Regulatory Commission (CERC) to intervene to prevent underutilization of bays and grid connectivity granted to solar and wind projects. The respondents (wind and solar companies) argued that PGCIL has to develop and strengthen the inter-state transmission system to facilitate 175 GW of renewable energy by 2022 instead of objecting to renewable companies applying proactively for connectivity.</p>
<p>When asked to elaborate on the present situation of transmission, Mercom’s source at <a href="http://www.greenkogroup.com/" target="_blank" rel="noopener">Greenko</a>, a renewable energy project developer, said, “A major negative is the non-availability of a Central Transmission Utility (CTU). Even in states like Rajasthan and Gujarat, CTU availability is limited and it is said that there is only about 3,000 MW of CTU availability right now and a lot of project developers are already booked for grid access. Under the General Network Access Regulations of Central Electricity Regulatory Commission (CERC), projects with power purchase agreements (PPAs) of seven years or more qualify for connectivity. For new projects, it is difficult to assess the grid availability.”</p>
<p>When contacted, another source of Mercom at one of the country’s leading developers, said, “Yes, transmission is an issue in India. Initially, no one thought renewables would grow so fast over the past two years or so, but now after we have logged more than 20 GW of solar and 5 GW of wind in two years, it is becoming a headache. Renewables need a specific and dedicated transmission network and system as they are intermittent by nature. Specific HDVC (high-voltage, direct current) lines are required and the Green Energy Corridor project is running behind schedule. Looking at the project development pipeline, all I can say is, if the transmission network is not modernized on a war footing, it will be detrimental for renewables.”</p>
<p>Expressing his concerns on the future, the source raised an important question, “Who is going to invest, if they can’t evacuate.”</p>
<p>“The country’s renewable energy installation target has been set at 175 GW of renewables by 2022, but the transmission infrastructure is not yet ready to absorb such levels of renewable energy. There needs to a transmission line build-out goal set in tandem with the renewable installation goal as they go in hand-in-hand. Without the grid infrastructure to handle renewable installations, I don’t see how the 175 GW goal can be reached,” said Raj Prabhu, CEO of Mercom Capital Group.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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