Just In Print Exclusive
Innovative, Pushy, Practical, (im)Patient, (Not at all Peeved) Piyush Goyal’s penchant for Power, Coal and New &Renewable Energy is evident as Minister for these and from his answers in exclusive interview with Just In Print.
How will You achieve ‘India will be generator and inverter free’ ?
Prime Minister Narendra Modi’s government will work to provide 24×7 power supply to the people of India during its tenure and work towards making India “generator and inverter free.Powering India’s Future” in the capital, Goyal, said that the greatest challenge he faced when he started as power minister was the transmission and distribution of power. He assured that “The Modi government will work to provide 24X7 power supply within the span of their tenure, with the expectation of making the country generator and inverter free. Regarding need of renewble energy, a sector in which I expect to see $100 billion invested in 5 years. Large businesses make investments in this sector and utilize their CSR funds to support goals like skill development and building toilets.Transmission and distribution are also likely to see investments of up to $50 billion in the next three to four years.
How is the renewable energy sector in the country ?
We expect $100 billion in the renewable energy sector in the next four years, Government expects $50-60 billion investment in power transmission and distribution in the next four years.Government is working on a renewable energy policy to attract investments in the space by providing tax breaks and cheaper loans. I’m focused on providing 24×7 electricity to households in the next five years. As for demand for imposing anti-dumping duty on solar panels at another event, We have ambitious plans in the solar power sector. Imposition of anti-dumping duty will kill the solar mission.Imposition of any such duty would have led to escalation in the tariff from solar plants. Domestic solar panel manufacturers have ‘suo-moto’ withdrawn their plea for such a duty. Imports are necessary as the domestic manufacturing had not scaled up to a level wherein it could provide the required number for solar mission. We ensured within the framework of WTO to provide adequate support to not only fulfil the current manufacturing potential but also plan for a five year significant ramp up from what they (domestic manufactures) have now. …ddomestic solar equipment manufacturing capacity of 700-800 MW is not sufficient to meet the government’s ambitious plans of adding more power generation capacity through renewable energy sources. The country’s current installed solar capacity exceeds 2,600 MW.
What about the Cost of Renewable Energy Projects, are they within reaches?
The cost of renewable energy power generation in India is competitive compared to the cost in other countries. In India, the solar power installation cost has reduced significantly over last three years. The installation cost of wind power projects in India is also competitive in comparison of other countries. India has signed 39 Memorandum of Understanding (MoU) / Agreements in the field of Renewable Energy, under which there are a number of Joint Working Groups (JWG). The cooperation also includes issues of developing renewable energy sources in the country. The 12th Five Year Plan targets a cumulative renewable power installed capacity of 55 GW by end of March 2017. Rs.19,113/- Crore has been allocated in the Five Year Plan for the purpose.
Your expectations of investment in Renewable Energy ahead ?
The government is expecting $100 billion investment in the renewable energy sector in the next four years as it firms up a new policy framework for the same. We expect $100 billion in the renewable energy sector in the next four years. Government expects $50-60 billion investment in power transmission and distribution in the next four years. Government is working on a renewable energy policy to attract investments in the space by providing tax breaks and cheaper loans. Power Ministry is focused on providing 24×7 electricity to households in the next five years. We have ambitious plans in the solar power sector. Imposition of anti-dumping duty will kill the solar mission. Imposition of any such duty would have led to escalation in the tariff from solar plants. Domestic solar panel manufacturers have ‘suo-moto’ withdrawn their plea for such a duty. Imports are necessary as the domestic manufacturing had not scaled up to a level wherein it could provide the required number for solar mission. …We ensured within the framework of WTO to provide adequate support to not only fulfil the current manufacturing potential but also plan for a five year significant ramp up from what they (domestic manufactures) have now. Domestic solar equipment manufacturing capacity of 700-800 MW is not sufficient to meet the government’s ambitious plans of adding more power generation capacity through renewable energy sources. The country’s current installed solar capacity exceeds 2,600 MW.
Your comments on Electricity from non conventional sources of energy.
A total of over 53.22 billion units have been produced during 2013-14 from non-conventional sources in the country which includes rural areas also. The major contributors are 31.26 billion units from wind, 3.35 billion units from solar, 12.32 billion units from biomass and bagasse cogeneration and 6.06 billion units from small hydro power. Besides, a large number of decentralized electricity generation systems based on solar, biogas, watermills/microhydel and biomass gasifiers have been promoted in rural areas. Ministry of New and Renewable Energy has set a target of capacity addition of 29,800 MW from various renewable energy sources during 12th Plan period in the country including rural areas. The target comprises of 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and 2,700 MW from bio-power.
What Initiative to Encourage States to Utilize Wastelands for Setting up Renewable Energy Projects ?
Government has taken various initiatives which includes setting up of Solar Parks on the banks of canals, Ultra Mega Solar Power Projects, wind power projects for which the States are encouraged to use land including wastelands depending on availability and resources. This was stated by Sh. Piyush Goyal, (Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today. Further, The Ministry of New and Renewable Energy is providing various fiscal incentive such as generation based incentives, accelerated depreciation, concessional excise and customs duties for the promotion of renewable energy sources in the country. Besides providing financial and fiscal incentives, a few other measures to promote renewable energy include: setting up of demonstration projects, preferential tariff for purchase of power generated from renewable sources, intensive resource assessment, development of power evacuation and testing facilities, introduction of Renewable Energy Certification and Renewable Purchase Obligation, etc. Indian Renewable Energy Development Agency, a Central Public Sector Enterprise under this Ministry, also provides soft term loan for promotion of renewable energy projects.
Cost of land in renewable energy projects such as wind farms and solar farms/power plants is of the order of 3 to 5 per cent of total project cost. The new Land Acquisition Act may impact the total cost of renewable energy projects.
The Act stipulates payment of compensation and Rehabilitation and Resettlement package as per First, Second and Third Schedule of the Act. Under the Act, time frame has been prescribed during which various processes are to be completed. A draft National Land Utilisation Policy has been formulated which inter-alia proposes Land Utilization Zones for the purpose of ensuring optimal utilization of land resources..
Your comments on growth of Renewable Energy ?
The Ministry of New and Renewable Energy is providing various fiscal incentive such as generation based incentives, accelerated depreciation, concessional excise and customs duties for the promotion of renewable energy sources in the country. . This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge). Besides providing financial and fiscal incentives, a few other measures to promote renewable energy include: setting up of demonstration projects, preferential tariff for purchase of power generated from renewable sources, intensive resource assessment, development of power evacuation and testing facilities, introduction of Renewable Energy Certification and Renewable Purchase Obligation, etc. …Indian Renewable Energy Development Agency, a Central Public Sector Enterprise under this Ministry, also provides soft term loan for promotion of renewable energy projects.