Question : Lending Limit for Renewable Energy Sector

(a) whether the Government proposes to achieve 175 GW of renewable energy capacity by 2022;

(b) if so, the details thereof and the strategy adopted by the Government to achieve the said target;

(c) whether the Government proposes to provide reliable, sustainable and affordable electricity to the masses and focuses on changing the energy mix towards green energy sources and if so, the details thereof;

(d) whether the Government has requested the Reserve Bank of India for removal of the priority sector lending limit for the renewable energy sector and if so, the details thereof; and

(e) whether the Government proposes to encourage the PSBs (Public Sector Banks) to lend more for renewable energy projects and help developers to access easy finance, if so, the details thereof?

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI R. K. SINGH)

(a) & (b) Yes Sir. A total of 80.04 GW of Renewable Energy capacity stood installed in the country as on 31st May, 2019 against the target of 175 GW renewable energy capacity by 2022. In addition, renewable energy projects of 64.77 GW capacity are either at various stages of implementation or bidding.

The strategy adopted by the Government for achieving renewable energy target, inter alia, includes the following:-
• Waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to March, 2022.
• Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
• Notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner.
• Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022.
• Implementation of Green Energy Corridor project to facilitate grid integration of large scale renewable energy capacity addition.
• Notification of standards for deployment of solar photovoltaic systems/devices
• Launch of new scheme for farmers, CPSU Phase II and Solar Rooftop Phase II program.




(c) As per the Government of India’s submission to the United Nations Framework Convention on Climate Change on Intended Nationally Determined Contribution (INDC), a cumulative electric power capacity of 40% from non-fossil fuel based energy resources is to be achieved by 2030. Accordingly, the Government has planned a target of installing renewable energy capacity of 175 GW for RE sector by the year 2022.

(d) The Government has requested the Reserve Bank of India to consider segregating the exposure in Renewable Energy sector from Power Sector and defining new category “RE sector’’ so that flow of capital for RE sector is not hampered.


(e) A Consultation meeting with stake holders was recently organized by the Ministry of New & Renewable Energy in New Delhi on 7th May, 2019 to solicit views/suggestions on how to increase the pace of installation of Renewable Energy systems. Various issues relating to financing of renewable energy projects and facilitating access to easy finance for project developers were discussed in the meeting which also had representation from the Public Sector Banks.
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