Steps by Government to promote Renewable Energy
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Context: Government has taken several steps to promote renewable energy, including wind energy, in the country.
What is Renewable energy?
- Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, rain, tides, waves, and geothermal heat.
Types of Renewable energy:
Measures taken to promote Renewable energy:
- permitting Foreign Direct Investment (FDI) up to 100 percent 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,
- declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
- setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
- laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power,
- setting up of Project Development Cell for attracting and facilitating investments,
- Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
- Conducting skill development programmes to create a pool of skilled manpower for implementation, operation and maintenance of RE projects.
In addition to the above, the following steps have been taken specifically for promoting wind energy:
- Concessional custom duty exemption on certain components required for manufacturing of wind electric generators.
- Generation Based Incentive (GBI) is being provided to the wind projects commissioned on or before 31 March 2017.
- Technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy, Chennai.
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