(a) whether the target fixed for solar energy generation upto the year 2019 has been achieved;
(b) if so, the details thereof, State/UT-wise; and
(c) if not, the reasons therefor along with the steps taken/being taken by the Government to compensate the same?
THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for SKILL DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI R.K. SINGH)
(a)&(b) The Government has fixed a target for installing 100 GW of grid connected solar power by December, 2022. No year-wise/State-wise targets have been fixed. A cumulative grid connected capacity of 33,730.53 MW has been installed in the country as on 31.12.2019. In addition, solar projects of capacity 22940 MW are under various stages implementation and 29470 MW under tendering. The State/UT-wise details of grid connected solar power installed as on 31.12.2019 in the country are given in Annexure.
(c) Major challenges in Solar Power Sector include delays in payments by distribution companies in some States, delays in adoption of tariffs by concerned State Electricity Regulatory Commissions, availability of land, non conducive policies in certain states, etc. In order to address the above and attract private investment, The Ministry of New and Renewable (MNRE) has taken the following steps:
(1) The State DISCOMs have been requested to honour Power Purchase Agreements (PPAs) and ‘Must Run’ status accorded to wind and solar power projects, as per provisions of Indian Electricity Grid Code 2010.
(2) In order to address the issue of delayed payments by State distribution companies to Renewable Energy generators, the Government through Ministry of Power’s Order No. 23/22/2019-R&R dated 28.06.2019 has made it mandatory for the Distribution Licensees to open and maintain adequate Letters of Credit (LCs) as Payment Security Mechanism if provided for under Power Purchase Agreements with Distribution Licensees.
(3) In order to strengthen the contractual provisions in the Contract (Power Purchase Agreements) between the solar power generators and the Procurers, and to facilitate setting up of Renewable Energy power projects, the Government, vide notification dated 22.10.2019 from Ministry of New & Renewable Energy, has made following major amendments to the ‘Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects’:
(i) Solar Power Generators have been allowed to submit documents/lease agreement to establish possession/right to use 100% (hundred per cent) of the required land in the name of the Solar Power Generator for a period not less than the complete term of the PPA, on or before the Scheduled Commissioning Date (SCD).
(ii) Clear and elaborate provisions for time extension and compensation to affected party in the event of natural and non-natural Force Majeure events with specific provisions regarding termination due to natural and non-natural Force Majeure events have been included.
(iii) Quantum of compensation for back-down has been increased from 50% to 100% with provision for recognition of only written instructions for back-down.
(iv) Corresponding time extension in date for achievement of financial closure and scheduled commissioning date, in case there is a delay in adoption of tariff by the concerned State Electricity Regulatory Commission beyond a period of 60 days from the filing of such application.
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