Bridge India

Last few weeks have seen feverish activity in the RE sector with several bold announcements from the new MNRE leadership, keen to address the multiple complex issues facing the industry. After announcing a new RE rollout plan entailing tenders of 91 GW of new solar and wind projects by March 2020, MNRE has issued a new concept note on rooftop solar envisaging capital subsidies for residential customers and financial support to DISCOMs – aggregating to INR 235 billion (USD 3.7 billion) – for encouraging growth of this market.

In our last weekly update, we discussed the state of domestic manufacturing and Indian government’s efforts to improve prospects of the sector after the domestic content requirement mechanism was challenged successfully by the USA at the World Trade Organization (WTO) (refer). Recent reports suggest that the government is planning to offer incentives directly to domestic manufacturers instead of compulsory domestic...
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As part of the memorandum of understanding signed under the UDAY scheme, the Ministry of Power has allowed a roll forward of the Renewable Purchase Obligation (RPO) for Uttar Pradesh by seven years (refer). Meanwhile, state power distribution companies in Odisha have got a stay on enforcement of RPO from the state High Court. These incidents set bad precedents for...
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Last week, Jharkhand, one of India’s largest coal producing states and governed by BJP, announced a new tender for 1,200 MW of solar capacity allocation under its state policy (refer). This is the first such tender for the state. Projects under this tender are expected to be allocated under two categories: 200 MW for projects smaller than 25 MW (minimum...
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Telangana successfully completed auction for 2,000 MW of grid connected, ground mounted solar projects in India in August 2015 and PPAs were expected to be signed by October 2015 (refer). However, there has been a considerable delay in signing these PPAs. The process appears to be stuck at senior levels in the state government purportedly because the subsequent auction processes...
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Earlier this month, India’s minister for new and renewable energy, Piyush Goyal, announced that the country’s rooftop solar policy is now ready to be placed before the union cabinet (refer). This policy is expected to lay out yearly targets to reach 40 GW of rooftop solar capacity and provide comprehensive details of operational and fiscal support for the rooftop solar...
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Mr. Piyush Goyal, Minister for New and Renewable Energy, announced last week that the government plans to waive interstate transmission charges for electricity generated by renewable sources (refer). This waiver was earlier included in the proposed amendments to the country’s existing tariff policy of 2005 (refer), but the amendments are yet to be approved. However, for speedy promotion of renewable...
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The Indian Parliament recently concluded a literally washed out monsoon session. The key Amendments for Electricity Act 2003, which the Parliamentary Standing Committee had already recommended was ready but not tabled (refer here to read why this matters for the solar sector). Another important proposal to amend the National Tariff Policy 2005 has been severely watered down (refer here to...
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