The State of Renewable Energy in India 2019 a Citizen's Report the State of Renewable Energy in India 2019 a Citizen's Report
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THE STATE OF RENEWABLE ENERGY IN INDIA 2019 A CITIZEN'S REPORT THE STATE OF RENEWABLE ENERGY IN INDIA 2019 A CITIZEN'S REPORT 00Cover, credit and contents.indd 1 17/01/19 3:52 PM Research direction: Chandra Bhushan Authors: Priyavrat Bhati, Priya Sreenivasan, Mandvi Singh, Shweta Miriam Koshy, Pratha Jhawar and Swati Sambyal Research support: Soundaram Ramanathan and Richa Agarwal External contributors: Nikita Das and Jatin Sarode, Prayas, Pune (Chapter 7: Discoms) Editor: Souparno Banerjee Editorial support: Arif Parrey Layouts: Kirpal Singh and Surender Singh Cover design: Ajit Bajaj Infographics and design support: Raj Kumar Singh and Vijayendra Pratap Singh Production: Rakesh Shrivastava and Gundhar Das Research supported and funded by: Shakti Sustainable Energy Foundation We are grateful for the support provided by Shakti Sustainable Energy Foundation (https://shaktifoundation.in). However, the views espoused in this report do not necessarily reflect that of the foundation. The Foundation does not guarantee the accuracy of the data not does it accept any responsibility for the consequences of its use. © 2019 Centre for Science and Environment Material from this publication can be used, but with acknowledgement ISBN: 978-81-86906-27-9 Price: Rs.750 (US $45) Maps used in this report are indicative and not to scale. Citation: Chandra Bhushan, Priyavrat Bhati, Priya Sreenivasan, Mandvi Singh, Pratha Jhawar, Shweta Miriam Koshy and Swati Sambyal 2019, The State of Renewable Energy in India, Centre for Science and Environment, New Delhi Published by Centre for Science and Environment 41, Tughlakabad Institutional Area New Delhi 110 062 Phone: 91-11-40616000 Fax: 91-11-29955879 E-mail: [email protected] Website: www.cseindia.org Printed at Multi Colour Services 00Cover, credit and contents.indd 2 17/01/19 3:52 PM Contents Foreword v Executive summary 1 1. The road to 175 gigawatt 11 2. Utility-scale solar: Charting a new course 23 3. Solar rooftop: Overshadowed 41 4. Solar manufacturing: Moving out of the doldrums 59 5. Wind energy: Braving the headwinds 69 6. Energy access: Bridging the gaps 85 7. Discoms: Fundamental reforms required 113 8. Integrating RE: Preparing for the future 131 9. Waste to energy: Limited scope 147 Statistics 159 References 185 00Cover, credit and contents.indd 3 17/01/19 3:52 PM Key abbreviations ABT: availability-based tariff MW: megawatt ACS: average cost of supply NBFC: non-banking financial corporation AGC: Automatic Generation Control NCEF: National Clean Energy Fund AMI: automatic meter infrastructure NEP: National Electricity Plan APERC: Andhra Pradesh Electricity Regulatory Council NGT: National Green Tribunal APPC: annual pooled purchase cost NIWE: National Institute of Wind Energy ARR: average revenue realised NPA: non-performing asset AT&C: aggregate technical and commercial NREL: National Renewable Energy Lab BU: billion units NSEFI: National Solar Energy Federation of India CEA: Central Electricity Authority NSM: National Solar Mission CEMS: Continuous Emission Monitoring Systems NTP: National Tariff Policy CEQMS: Continuous Effluent Quality Monitoring Systems NVVN: NTPC Vidyut Vyapar Nigam CERC: Central Electricity Regulatory Commission OA: open access ckm: circuit km OMC: oil marketing company CPCB: Central Pollution Control Board OMS: outage management system CSS: cross-subsidy surcharge PE: private equity CUF: capacity utilisation factor PGCIL: Power Grid Corporation of India Ltd DCR: domestic content requirement PLF: plant load factor DDG: decentralised distributed generation PLM: peak load management DDUGJY: Deen Dayal Upadhyaya Gram Jyoti Yojana PMU: phasor measurement unit DHBVNL: Dakshin Haryana Bijli Vitaran Nigam Ltd PMUY: Pradhan Mantri Ujjwala Yojana discom: distribution company POSOCO: Power System Operation Corporation DRE: distributed renewable generation PPA: power purchase agreement DSM: Deviation Settlement Mechanism PPP: public-private partnership, public-private participation EDC: electrification distribution circle PQM: power quality management EDD: electrification distribution division PSA: power sale agreement EIA: environment impact assessment PSHP: Pumped Storage Hydro Plants EOI: expression of interest PSM: Payment Security Mechanism EPC: Engineering Procurement and Construction R-APDRP: Restructured Accelerated Power Development and ESMI: Electricity Supply and Monitoring Initiative Reforms Programme F&S: Forecasting & Scheduling RDF: refuse-derived fuel FiT: feed-in tariff REC: Renewable Energy Certificate / Rural Energy Corporation FoR: Forum of Regulators REMC: Renewable Energy Management Centre FY: financial year RE-OA: renewable energy-based open access GBI: generation-based incentives RESCO: Renewable Energy Service Company GEC: Green Energy Corridor RGGVY: Rajiv Gandhi Grameen Vidyutikaran Yojana GST: Goods and Services Tax RPO: renewable purchase obligation GW: gigawatt RRAS: Reserves Regulation Ancillary Services GWEC: Global Wind Energy Council RRF: Renewable Regulatory Fund HAREDA: Haryana Renewable Energy Development Agency SAUBHAGYA: Sahaj Bijli Har Ghar Yojana HERC: Haryana Electricity Regulatory Commission SBM: Swachh Bharat Mission HUDA: Haryana Urban Development Authority SECI: Solar Energy Corporation of India HVDC: high voltage direct current SERC: State Electricity Regulatory Commission IEA: International Energy Agency SPIS: Solar Pumping Irrigation System IEGC: Indian Electricity Grid Code SRISTI: Sustainable Rooftop Implementation for Solar Transfiguration INDC: Intended Nationally Determined Contribution of India IPDS: Integrated Power Development Scheme SRT: solar rooftop IPP: independent power producer SVC: static var compensator IREDA: Indian Renewable Energy Development Agency SWM: solid waste management ISMA: Indian Solar Manufacturers Association SWP: solar water pump ISTS: Inter-state Transmission System T&D: transmission and distribution IT: information technology TANGEDCO: Tamil Nadu Generation and Distribution Company JAREDA: Jharkhand Renewable Energy Development Agency TASMA: Tamil Nadu Spinning Mills Association JNNSM: Jawaharlal Nehru National Solar Mission TNERC: Tamil Nadu Electricity Regulation Commission KERC: Karnataka Electricity Regulatory Commission TPD: tonne per day KUSUM: Kisan Urja Suraksha Evam Utthan Mahabhiyan TSP: total suspended particles kW: kilowatt UDAY: Ujjwal Discom Assurance Yojana kWh: kilowatt hour UI: unscheduled interchange LDC: load dispatch centre UPNEDA: Uttar Pradesh New and Renewable Energy Development MGO: mini-grid operator Agency MGP: Mera Gaon Power URTDSM: United Real Time Dynamic State Measurement MNRE: Ministry of New and Renewable Energy VCPE: venture capital and private equity MoEF&CC: Ministry of Environment, Forests & Climate Change VGF: viability gap funding MoP: Ministry of Power WAMS: Wide Area Management System MoUD: Ministry of Urban Development WECI: Waste to Energy Corporation of India MPUVNL: Madhya Pradesh Urja Vikas Nigam Ltd WSAT: Wind Security Assessment Tools MSW: municipal solid waste WTE: waste to energy MU: million units WTG: wind turbine generator MVA: mega volt ampere WTO: World Trade Organization 00Cover, credit and contents.indd 4 17/01/19 3:52 PM Foreword ive years ago, when Centre for Science and Environment (CSE) published its first State of Renewable Energy report, the sector was just taking wings. We were part of its cheerleaders — an environmental research and advocacy group which believed strongly that the world Fneeds to move out of fossil fuels because of the growing risks of climate change. Renewable energy (RE) is the ticket to get the world out of its addiction to oil and gas. We were its proponents, but we had our fears. We believed that India needed a RE policy that would be less about industry and more about supply to meet the needs of the poorest in the country. For us, renewable energy was (and is) a means to both decarbonise our economy and provide access to large numbers of people who were (and still are) energy-deprived. Five years later, when we publish the 2019 State of Renewable Energy report, much has changed, and yet much remains the same. The government of India has an ambitious target for RE — 175 gigawatt (GW) by 2022. There is no question now that RE has arrived. Nobody argues about its imperative or feasibility. The industry has matured. There are RE companies that can bid and out-bid each other for the supply of panels, solar power plants or wind turbines. RE is an industry with sparkling offices, new age companies and flamboyant leaders. It is no longer restricted to the musty world of scientists or activist NGOs. It has certainly grown out of the world of community groups working in villages on small projects. It is real. It is big. RE plants compete with coal-based energy. Renewables are now under the Ministry of Power — RE is no longer a peripheral scientific sector, struggling to compete with the big boys. The testimony to this growth lies in its numbers. Today, the Ministry of New and Renewable Energy (MNRE) says that the country has hit 73,000 megawatt (MW) of installed RE power, which is some 20 per cent of the country’s installed capacity for power generation. On good days, when the sun is shining and the wind is blowing, RE meets some 12.5 per cent of the country’s electricity demand. On other days, it is over 7 per cent. This is not small. But it is not big either. This, therefore, is not the time to be complacent or to pat our backs for work done. Even as RE has grown, the challenges that confront India have also grown