a webinar on DRIVING THE NEXT PHASE OF GROWTH IN ’S SECTOR

Post Event Report Table of Contents

Message from Founding Chair, ReNew Foundation 4

Section I. India and Renewables 6-14 • India’s Energy Transition 6 • Current State Of Renewable Energy Sector in India 9 • Focus on AtmaNirbhar RE Sector – Can India Emerge As A Hub 12 for Solar Equipment Manufacturing? • The Next Phase of India’s Renewable Energy Transition 12 • Policy Support Needed For Achieving Mission 450 GW 14

Section II. Rajasthan and Renewables 15-20 • The Current Opportunities And Potential 15 • Government’s Role And Major Policies 16 • ReNew In Rajasthan 20

Section III. Highlights from the webinar 21-27 • What They Said…. 21 • Panel Discussion 25

Section IV: Media Coverage 28

2 3 MESSAGE FROM RE sector looks to turn AtmaNirbhar and reduce import dependence in response to the Prime Minister’s call for going local. All these factors could pave the way for Rajasthan in becoming one of largest contributors to India’s target of 450 GW of renewable energy Founding Chair, by 2030 and a major renewables hub.

ReNew Foundation To deep dive into this area and explore the challenges & opportunities associated with Fortunately, at a time when countries are Rajasthan as a key driver of the next phase of growth in India’s renewable energy sector under pressure to reduce their carbon we conducted a webinar which saw participation of Central and State policymakers, emissions drastically, renewable energy sectoral experts & industry leaders. We were delighted to have Shri Babul Supriyo has emerged as a cleaner alternative. (Hon’ble Union Minister of State – Environment, Forests & Climate Change) deliver the Power generated by harnessing the wind Keynote Address while Shri B.D Kalla (Hon’ble Minister for Energy – Govt. Of Rajasthan) and the sun’s rays is pollution free and does outlined the state Government’s various policies and initiatives in his special address. not harm the environment. At the same This was followed by a panel discussion featuring M.M Ranwa (CEO, Rajasthan Urja time, a stream of technological advances Vikas Nigam Limited), Vishal Mehta (MD, Partner Boston Consulting Group, have also significantly reduced the cost India), Sanjay Varghese (President and Head of Solar Business, ReNew Power). of generation of renewables, thereby The session was moderated by Deepak Gupta (SVP, Regulatory Affairs, ReNew making it not only environment friendly Power). This report summarizes the key points that emerged from the webinar, and but also the commercially viable and more sheds light on the current business environment in Rajasthan and the state’s plans for affordable option, in most markets around being a leader in adoption of renewable energy. The report comprises a verbatim the world. Renewables’ capacity has grown coverage of the panel discussion that looks at how Rajasthan can realize its potential at a steady pace the world over and since in clean energy - especially solar, what technologies and innovations it should focus the last 2-3 years, incremental addition of on for future growth and how it can overcome roadblocks in this journey. renewables capacity has surpassed that of ReNew Foundation firmly believes in the power of dialogues to achieve common goals thermal power plants. India has emerged and we will continue to curate discussions on pertinent and concerning themes related as a major renewables hub, with the sector to energy sector to build a blue print for collaborative action which can be disseminated growing at a CAGR of around 20% since amongst key stakeholders. We would like to thank all the panelists, moderator and 2014. A major reason for this aggressive attendees of the webinar for their valuable opinions and insights that helped us put growth in capacity has been the Central together this report. We hope it provides a more granular understanding of the promise Government’s unflinching commitment that Rajasthan holds for being at the vanguard of India’s energy transition. to the sector’s growth by establishing a conducive policy framework and setting Vaishali Nigam Sinha an aggressive target of generating 175 GW from renewables by 2022. This has attracted several IPPs, who have all contributed to Founding Chair – ReNew Foundation an impressive ramping up of renewables capacity. India has also emerged as the no. 1 destination for RE investments among emerging markets, with marquee global investors, all eyeing an entry into the sector by picking up stakes in India RE firms. Today, India is the world’s fifth largest producer of renewable energy with a total installed capacity of 90 GW. The future market potential for renewables in India also looks very bright, with the Government having recently revised its targets.

The state of Rajasthan blessed with a huge potential in renewable energy has been at the forefront of India’s energy transition. High solar radiation, good wind speeds and abundance of barren lands makes Rajasthan a highly attractive destination for investment in renewables. The state government has also introduced a highly enabling policy framework, to ensure ease of doing business for renewable energy developers. Rajasthan is also projecting itself as a potential base for manufacturing of solar equipment as the

4 5 I. India and Renewables Renewables deployment doubled over five years, with solar at the heart of this boom

INDIA’S ENERGY TRANSITION GW 15 Today there is no denying that the climate threat is real and upon us, and only a 15 15 progressive reduction in carbon emission levels can bail us out. As the world looks to India to lead global climate mitigation efforts. It is heartening to note the phenomenal 13 13 4 2 2 rise of the renewable energy (RE) sector in India registering a CAGR of 18% between FY14-FY20, making us the world’s 5th largest RE producer with an installed capacity 3 of around 90 GW. Our transition to clean energy is well and truly afoot, on the back of 7 this massive expansion in capacity, as we seek to meet our growing energy needs in a 3 climate compatible fashion. From being a nascent, esoteric concept to a full-fledged, 2 12 vibrant sector within a decade - RE in India has well and truly arrived and significantly 10.3 11.1 transformed our energy landscape. While its impact on environment is well known, RE 3 can also act as an engine of economic growth by creating jobs and improving lives 5.3 through enhanced last mile energy access. Realizing this, we are seeing an increased 2.5 focus on fast tracking RE adoption across the length and breadth of the country. 2015 2016 2017 2018 2019 A resilient and vibrant renewable energy sector has been one of the brightest spots of the Indian economy in recent years. It was back in 2014 that the Central Government set Solar Wind Small hydro Biomass an aggressive target of generating 175 GW from clean energy by 2022, with a vision to Source: BloombergNEF, Ministry of New and Renewable Energy. nurture and grow renewables as a sustainable alternative to carbon spewing fossil fuels, Note: Note: Solar capacity is in DC. to address India’s ever growing energy needs. What followed was a phase of aggressive expansion in capacity, unmatched by any other developing country. Coal additions dropped while renewables grew Renewables need to keep growing to meet national targets GW GW CAGR = 13% 19 500 450 16 15 400 15 15 13 2 300 4 2 3 175 8 200 7 3 86 4 11 12 100 62 75 4 10 39 50 3 5 0 2 2015 2016 2017 2018 2019 2022 2030 2015 2016 2017 2018 2019 Solar Wind Small hydro Biomass Renewables Coal Solar Wind Small hydro Biomass Source: BloombergNEF, Ministry of New and Renewable Energy. Note:. Solar capacity shown in AC. Note: Large hydro was excluded from the 175GW target. The breakup of the 450GW target is not known and it may include large hydro. Source: BloombergNEF, Central Electricity Authority, Ministry of New andRenewable Energy 6 7 There are three primary drivers of this exponential growth. Average auction tariffs fell steeply Firstly, credit is due to the Central Government for fostering a highly conducive policy environment. Tax breaks, capital subsidies, 100% FDI, waiving Inter State Transmission Rupees/kWh (nominal) System charges, standardized and transparent auctioning of capacity, introduction of 6 RPOs for Discoms to assure offtake and simplifying land acquisition by developing Solar and Wind Parks drove the early phase of growth in renewables. The second reason is purely economic – a steady decline in costs. Rapid technological advances leading to efficiency gains coupled with aggressive bidding at keenly contested auctions have sent 5 tariffs southwards, with solar tariffs breaching the psychological barrier of Rs. 2/kWh in 2020. The sector once propped up by Govt. subsidies has now achieved grid parity, 53% drop besides the obvious environmental benefits. The third driver is availability of funds, critical for a capital-intensive sector like renewables. A supportive Government, policy stability, 4 huge market size, and well diversified projects have reduced the risk perception of the RE sector and helped attract investors. As compared to thermal power, RE projects offer less variable cash flows and higher profit margins, due to long term PPAs and rising 3 costs of coal. As more and more investors incorporate ESG metrics into their capital allocation decisions, funds are being diverted from oil and gas companies and ploughed into clean air/clean energy companies that are acting to mitigate the climate risk. In 2019, Climatescope ranked India as the no. 1 destination for RE investments, ahead of 2 China and Brazil. Not surprisingly, investors are now backing renewables big time, with marquee global players like Softbank, Brookfield, Temasek, CPPIB, ADIA, Total and KKR all picking up stakes in Indian RE firms. 1 Climatescope ranks India ahead of China, Brazil and Chile in 2019

India 2.93 0 2015 2016 2017 2018 2019 Chile 2.85 Solar Wind Brazil 2.76 Source: BloombergNEF, Central Electricity Authority, Ministry of New andRenewable Energy China 2.59

Kenya 2.52 CURRENT STATE OF RENEWABLE ENERGY SECTOR IN INDIA As India “locked down” to battle COVID-19, the economy was severely jolted by Jordan 2.51 simultaneous demand and supply compressions. While several sectors have been left Argentina 2.49 reeling, renewable energy (RE) has managed to emerge unscathed, thanks to proactive measures taken by the Government to insulate this sector from the effects of the Ukraine 2.47 pandemic. To begin with, the power sector was declared an essential service during the lockdown. While demand dropped by 25%-30% due to sharp reduction in commercial Peru 2.41 and industrial activity. It is the thermal power plants that fully absorbed this shock, Morocco 2.39 due to the “must run” status enjoyed by renewable projects, making them the last of all power sources to be curtailed. The Government also extended commissioning deadlines for under development RE projects given the lockdown and resultant exodus Fundamentals Opportunities Experience of migrant labour to their hometowns. These steps have prevented any major erosion of the remarkable progress made by the renewables sector in last 5-6 years and kept Source: BloombergNEF India’s clean energy transition very much on track. 8 9 The Government’s focus on some critical sectoral reforms as part of its post COVID India’s renewables ambition in perspective stimulus package should also speed up growth. Foremost among these is the Rs. 90000 Top 20 largest legislated government renewables additions targets with deadlines cr. liquidity injection to discoms whose precarious financial health was further aggravated between 2020 and 2030 by the lockdown. This decision will help IPPs secure their long pending dues, easing liquidity concerns and allowing fresh investments. The decision to privatize distribution India 124.1 in Union Territories and an indication of early implementation of the New Tariff Policy are also positive steps, likely to trigger much needed reforms in the distribution sector Germany 83.4 like elimination of cross subsidies, phased grant of open access and push discoms to cut AT&C losses by modernizing their infrastructure and implementing steps like smart China 81.9 metering. Lower interest rates and the decision to remove tariff ceilings in RE auctions will help spur investments in RE. The Govt. of India’s proposed amendments to the Saudi Arabia 59.9 Electricity Act 2003 also include provisions such as a National Renewable Energy Policy, a statutory Contract Enforcement Authority, measures to ensure stricter compliance U.K. 32.1 with RPOs and privatization of discoms for greater efficiency.

South Korea 30.6 Coal additions dropped while renewables grew

U.A.E. 26.5 $ billion Italy 22.8 12 South Africa 22.6 India accounts for nearly a fifth 11.3 of all renewables deployment France 22.4 targets to 2030 9 Algeria 21.5 55% increase in 15 months Netherlands 15.7 7.3 6 Japan 13.6 17.21%

Spain 12.4 3 Taiwan 11.5 721GW

Nigeria 9.8

Mexico 9.6 0 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 Belgium 9.4 Source: BloombergNEF, Central Electricity Authority, Ministry of New andRenewable Energy

Turkey 8.2 Despite a pandemic and consequent lockdown, the year has been an exciting one for RE Rest of the world sector, with several innovative bids drawing an overwhelming response from investors, Brazil 8.2 which proved the sector’s resilience and attractiveness. First of a kind bids like Round the Clock Power, Peak Power and Hybrid power among others paved the way for firm, Source: UNEP, Frankfurt School-UNEP Centre, BloombergNEF. Note: Includes only solar, wind, biomass and schedulable, 24 x 7 green power with fast emerging storage technologies helping to geothermal. India has a target of 175GW renewables by 2022. overcome the intermittency barrier. 10 11 FOCUS ON ATMANIRBHAR RE SECTOR – CAN INDIA EMERGE AS A HUB As we rebuild the economy post COVID, the stage is set for the next phase of growth FOR SOLAR EQUIPMENT MANUFACTURING? in renewables. The pandemic has brought into focus the importance of health and the need to curb carbon emissions, and this augurs well for RE. The Government has revised The stage is now set for the RE industry to scale the next frontier by shoring up domestic its earlier target upward to 450 GW by 2030 which means in the next 10 years we manufacturing capabilities, aligned to the Prime Minister’s call for AtmaNirbhar Bharat. are targeting to create as much RE capacity in next decade as we have built from all While India has a mature manufacturing base in wind, there exists tremendous potential sources till date. This statistic itself underlines the huge future potential of the sector. in solar inputs and ancillary products like batteries and inverters. While India has an Further, a rising population, growing income levels and rapid pace of urbanization and annual demand of around 20 GW of solar power, current manufacturing capacity is a industrialization are likely to result in a 95% rise in electricity demand by 2030. It is mere 3 GW, with over 80 percent of components being imported, mainly from China. expected that atleast half of this incremental demand will be met by renewables thus There could not be a better time for India to emerge as a global manufacturer of choice underlining the huge untapped market potential. We are also likely to see the emergence and position itself as an alternative RE manufacturing hub. A sustainable domestic of several disruptive technologies that will further propel the sector ahead. manufacturing industry can boost GDP, save USD 42 billion in equipment imports by 2030, provide equipment supply security, and create 50,000 direct and 125,000 indirect The electric vehicle market is poised for steep growth, backed by tax breaks, consumer jobs in the next 5 years, paving the way for a speedy post COVID recovery. subsidies and state funded ramp up of charging infrastructure. Given the focus on health, consumers also will be more inclined to switch to safer and sustainable modes of transport India needs to move up the solar manufacturing value chain from its current status of post COVID19. If RE is used for charging electric vehicles, it will be a massive boost for being mere assemblers. Domestic manufacturing can start in a phased manner with RE sector. The storage market will also see a boom due to improved battery chemicals cells and modules and over time integrate backwards into semiconductor wafers and and economies of scale in production, enhancing flexibility of power generated from ingots, that are more complex and with fewer suppliers. The need of the hour is to RE. Lithium-ion battery prices have already dropped by over 80% and is likely to dip create a globally competitive and sustainable manufacturing set up that can match further. As affordable and efficient storage solutions become available, they will help the Chinese supplies in price, scale and quality. This will not only augment supplies for overcome the intermittency factor associated with RE and will address concerns about domestic market expansion but also help India wrest a slice of the global supply chain. grid stability, thus enabling higher penetration of RE into the grid. The recently unveiled PLI scheme, coupled with a Basic Customs Duty on imports can create a globally competitive hub for manufacturing of solar cells, modules and batteries. Solar PV modules will become cheaper due to higher conversion efficiencies accruing This will embed Atmanirbharta across the energy value chain and also help India wrest from new technology and improved production processes. Conventional cells will be a slice of the global supply chain, besides boosting employment. The Govt. has already replaced by bifacial panels that can absorb energy from both front and rear, generating received expressions of interest for investments up to $3bn in solar manufacturing and up to 30% more power. These are also cheaper as they use glass unlike transparent sheets a long-term policy clarity will only catalyze action. in traditional modules, besides being more durable. Similarly, wind turbine manufacturers are also designing more efficient versions – increasing mast heights, introducing longer and lighter blades and improving rotor speeds for higher yields. THE NEXT PHASE OF INDIA’S RENEWABLE ENERGY TRANSITION We will also see more hybrid projects, as opposed to plain vanilla wind or solar. Combined COVID19 has necessitated a green recovery – it is the only way we can create a resilient, with a storage system, hybrid plants can ensure firm, forecastable, round the clock supply inclusive and equitable socio-economic order. For this to happen, renewables have to of green power with flexibility to match peak power demand, Hybrid projects also better be at the heart of this rebuilding. Clean energy and clean technologies must be the utilize land and transmission infrastructure, reducing capex and increasing returns. The cornerstone of all recovery strategies. This is the perfect opportunity to accelerate the recent success of a 1200 MW peak power tender and a 400 MW RTC tender, which energy transition rather than put it on the backburner. Renewable energy can revitalize resulted in record low tariffs, is a harbinger of the growing acceptability of renewables the economy by creating “green” jobs, ensuring energy security and strengthening as the preferred means to meet varying demands of discoms in India. RE adoption by resilience. A renewables driven recovery can tackle the twin challenges of air pollution corporates in India is also rising quickly with 22% of NSE top 100 companies now having and climate change by curbing greenhouse gas emissions, thus reducing vulnerability RE procurement targets. Plunging solar tariffs and a growing urge to turn carbon neutral to life threatening diseases. Last but not the least, a renewables driven recovery will have seen corporate PPAs in RE exceed 1 GW in last 2 years. Looking ahead, if certain contribute to a more equitable and inclusive growth by enhancing last mile access to regulatory hurdles are addressed and the right incentives offered, the B2B segment can energy. This can dramatically improve living standards at the bottom of the pyramid – act as a major demand driver. by assuring them of basic amenities like healthcare, food, water. A CEEW NIPFP report says that 1.3 million full time jobs can be created if India reaches 160 GW from wind and solar by 2022. Even if half the generated renewable power is used to replace imported coal, India can save over Rs 6.75 lakh crore during 2021-2030.

12 13 II. Rajasthan and Renewables

POLICY SUPPORT NEEDED FOR ACHIEVING MISSION 450 GW CURRENT OPPORTUNITIES AND POTENTIAL 1. Revitalize the poor operational and financial health of state discoms. Govt. The recently discovered prices of clean energy and a growing sensitivity towards should focus on discoms undertaking necessary reforms to cut down environment have paved the way for accelerated adoption of renewable energy in several AT&C losses by upgrading their age-old infrastructure and using advanced Indian states. Rajasthan has been one of the earliest adopters and frontrunners when it techniques such as smart meters for more efficient billing. Also implement comes to renewables, thanks to it being naturally blessed. At 9.8 GW, Rajasthan currently New Tariff Policy – remove cross subsidies. has one of the highest renewable energy generation capacities among states in India. 2. Ramp up evacuation infrastructure, expedite the building of green corridors Particularly in solar power, it has the 3rd highest installed capacity in the country at 5.5 so that green power can be smoothly transported from RE rich states to RE GW. The border state also has the highest solar irradiation levels in the country with a scarce states. solar power potential of 142 GW. As per a study by MNRE, the state also has a significant 3. Invest in strengthening and better management of the grids. Leverage wind power potential at 20 GW, out of which only about 4.3 GW has been explored. technology – build up state of the art smart grid infrastructure. Rajasthan is a state of special interest to RE investors and developers, due to its unique geography (excellent solar radiation, good wind potential and large tracts of barren 4. Simplify labour laws as well as the process of land acquisition for RE projects, land), enabling frameworks for land procurement and stable law and order situation. extend waiver on ISTS charges. Rajasthan is home to the , situated in the Jodhpur district of Rajasthan 5. Ensure uniformity and stability of RE policies and regulations across states, and is currently the biggest solar park in the world with a capacity potential of 2.5 sanctity of contracts & agreements should be upheld. GW. The Rajasthan Government has signed an agreement with NTPC and Rajasthan 6. Allocate funds for continued research in storage, hydrogen, manufacturing Solar Park Development Corporation to set up another Mega Solar Park at Nokh. The of solar cells, wafers and ingots and capability building for the sector to be Jaisalmer Wind Park, on the other hand, is the second largest wind park in India and fully Atmanirbhar and globally competitive. among the largest in the world at 1,064 MW. 7. Enact the Electricity Amendments Bill 2020 – implement National RE policy India has set a renewable energy capacity target of 450 GW by the end of this decade to accelerate adoption, stricter compliance on RPOs, statutory body to and the state of Rajasthan will have a big role to play in achieving this target. Towards enforce contracts and privatization of distribution sector. this, by 2024-25, the state has targeted setting up 30000 MW of solar capacity – of this 8. Incentivize adoption of roof top solar and more decentralized, off-grid RE 24,000 will be grid connected/through solar parks, 4000 MW decentralized solar plants solutions to enhance last mile connectivity. and 1,000 MW each of roof top solar and solar pumps. By 2024-25, Rajasthan also plans to generate 7500 MW from wind and hybrid. 9. With regard to domestic manufacturing of batteries and solar cells, clarify the contours of the PLI scheme, issue clarity on tariff and duty structure and grandfathering of projects already bid for. 10. Ensure policy certainty, tax relief, interest rate subventions, skilling programmes, large scale Manufacturing parks to help domestic manufacturers match the Chinese in scale, quality and price and not only create a self- sustaining sector, but also garner a significant slice of the global solar equipment supply chain. The future for renewables looks bright and secure, especially as countries target decarbonizing their economies in the run up to 2030 and also aim for a sustainable and resilient recovery post COVID. Public policies, investment decisions and innovations will all align to ensure that the transition to green energy stays on track. Over the next decade RE should establish itself as the cheapest source of bulk energy.

Bhadla solar Park Jaisalmer Wind park

14 15 GOVERNMENT’S ROLE AND MAJOR POLICIES The state of Rajasthan has taken various initiatives to create a conducive policy FOCUS ON ROOFTOP SOLAR & DECENTRALIZED environment for the RE sector. Simplification of the approval process, tax breaks, easing SOLAR ENERGY SOLUTIONS land acquisition norms, promotion of rooftop and decentralized solar projects and • Rooftop Solar Power Plants can be set up on Government Buildings on setting up big ticket solar parks in Bhadla, Phalodi – Pokhran and Nokh have together RESCO Model. Rooftop consumers will be provided subsidies/incentives as contributed to a healthy current solar installed capacity of over 3 GW. per the guidelines of MNRE/State Government. Start-ups will be promoted for Rajasthan Investment Promotion Scheme 2019, Solar Energy Policy 2019 and Wind & installation of Rooftop Solar Systems. Hybrid Energy policy 2019 offer several relaxations and incentives aimed at making • The State will promote setting up of grid connected Rooftop PV Solar Power Rajasthan a leading renewable energy hub. They not only take care of big stakeholders Plants under Net metering arrangement. The DISCOMs will allow Solar Rooftop and investors but also have provisions for electric vehicle charging stations, solarization capacity addition up to 50% of the capacity of the distribution transformer of of agriculture pumps, storage technology in renewable energy, manufacturing sector, the area. Appropriate provisions would be made in Urban Building Bylaws to replacement of old wind turbines with new wind turbines by way of re-powering. The promote and facilitate use and installation of Solar Rooftop Systems. policies have brought down the cost of generating power from renewables in the state. In • The DISCOMs will develop a suitable and comprehensive consumer-friendly a significant move, the state government is planning to develop 33 district headquarters IT application for facilitating online timely approvals and monitoring of these as ‘Green Energy Cities’ in the next five years by installing 300 MW of solar rooftop projects. Rooftop consumers will be provided subsidies/incentives as per the systems. guidelines of MNRE/State Government. Significant steps taken by the state government to facilitate creation of Solar Parks • Benefits such as banking facility and payment of surplus energy by DISCOMs • Rajasthan Solar Park Development Company Ltd., a special purpose vehicle of the under Net-metering Scheme as applicable to domestic consumers, will also be RERC, has been established for the development of infrastructure and management applicable to Government offices, Government schools, Government colleges, of solar parks. The RERC will develop solar parks in Rajasthan on its own or through Government hospitals and any other Government buildings notified by State any other SPV, which may be created as required. Government under the Net Metering Scheme. • The state plans to hold joint ventures with private developers by investing up to • Solar Rooftop Systems can also be set up under gross metering scheme as 50% equity or any other percentage of equity participation as decided by the State per the guidelines prescribed by the State Government/Government of India. Government. The cost of land allotted by State Government would be part of its The entire generated power will be supplied to DISCOMs at a tariff determined equity participation in the joint venture company. by RERC. Solar Rooftop Systems up to 1 MW capacity will be allowed under • The State Government on its own or through any other agency designated by it will this Scheme. promote setting up of Ultra Mega Renewable Energy Power Park (UMREPP) in joint • The State will promote setting up of decentralized solar power projects with a venture with Central Public Sector Undertakings. minimum capacity of 0.5 MW and maximum capacity of 3 MW in the premises • The state plans to give extra attention to the development of solar parks by the and vicinity of 33 kV Grid Sub-Stations for sale of power to DISCOMs. The private sector. The solar power park developer will be allowed to acquire agricultural sub-stations for which decentralized solar power projects are to be established land from the titleholder for developing solar parks above the ceiling limit per will be selected by RUVNL/DISCOMs. The tariff for these projects will be the provisions of Rajasthan imposition of ceiling on Agriculture Holding Act, 1973. determined on basis of tariff-based competitive bidding process or as per the Land conversion will not be required for the development of solar park on private guidelines of State Government/Government of India. agriculture land. Allotment of Government land for development of Solar Park(s) will • Farmers will be encouraged to set up decentralized solar power projects on be considered on recommendation of RREC. their uncultivable, barren land and also for installation of solar PV pumps. Standalone solar systems will be supported to electrify remote households. • The State will promote and incentivize off-grid solar applications, including hybrid systems, as per the guidelines issued by MNRE to meet various electrical and thermal energy requirements for domestic and commercial use. • The State will also promote setting up of floating/reservoir top/canal top Solar Power Projects for sale of power to DISCOMs through competitive bidding or for captive use/third party sale.

16 17 OTHER ENABLING POLICIES • The State will promote setting up of Solar Power Projects under the Guidelines/ facilitate Research and Development (R&D) of storage technologies including Schemes of MNRE or Solar Power Projects allocated through competitive bidding by/ generation of hydrogen for use in hydrogen fuel cell, by renewable energy. for other State Utilities/Entities. • The state is also keen to support solar projects with storage systems like battery • The State will promote setting up of solar power projects for captive use as under: storage, pumped hydro storage or any other grid-interactive storage system. Solar Power Projects within premises of a consumer of Rajasthan; Solar Power Projects The DISCOMs plan to procure up to 5% of their RPO target from renewable outside the premises of consumer of Rajasthan; Solar Power Projects set up in the energy projects with storage systems at a tariff discovered through competitive State for captive use outside Rajasthan through open access. bidding in addition to the RPO target. The state will sponsor R&D in storage technologies including generation of hydrogen. • The State will promote setting up of solar power projects for third party sale within/ outside the State as under: Solar Power Projects within premises of consumer of Rajasthan; Solar Power Projects set up for sale of power within State through open FOCUS ON DOMESTIC MANUFACTURING OF SOLAR POWER EQUIPMENT access; Solar Power Projects set up for sale of power outside State through open – TOWARDS ATMANIRBHAR RE SECTOR access/power exchange. Such Projects will also be eligible for RE (Solar) Certificate as per Orders/Regulations issued in this regard by the appropriate Commission. The Government of Rajasthan also aims to promote manufacturing facilities for solar energy equipment in Rajasthan leading to the development of Solar Energy Ecosystem, • Water Resources Department will allocate required quantity of water from IGNP canal/ and to facilitate employment generation in the State with following concessions: the nearest available source for cleaning of solar panels and auxiliary consumption for Solar PV Power Plants and water requirement for Solar Thermal Power Plants subject 1. Benefits of Micro, Small and Medium Enterprises (MSME) Policy to eligible to the availability of water. manufacturers • The electricity consumed by the Power Producer for captive use within the State will 2. Land allotment at 50% concessional rate in industrial area/any other area be exempted from payment of Electricity Duty for 7 years from COD. 3. Exemption of 100% Stamp duty • For Solar Power Projects set up for captive use/third party sale within the State after 4. Full exemption in Electricity Duty for 10 years the commencement of this policy and up to March 2023 or for a capacity of 500 5. Investment subsidy on SGST to solar energy equipment manufacturers MW (Solar, Wind and Wind-Solar Hybrid, with or without storage, taken together) whichever is earlier, the transmission and wheeling charges will be levied as under a 6. Interest subsidy as per RIPS set structure. 7. Employment Subsidy as per RIPS: Reimbursement of 90% of contribution paid for • Enabling provisions for repowering of old wind projects, hybridization of existing employees for 7 years wind/solar/conventional power projects and setting up of new wind/solar/storage 8. Treating solar energy equipment manufacturing as thrust sector and other benefits hybrid projects and Waiver of ISTS charges since last 5 years, which continues till of Rajasthan Investment Promotion Scheme (RIPS) mid of 2023 has helped bring a lot of solar investment to the State. Generation of The slow-paced growth in 2020 (mostly owing to the pandemic) has proved to be a minor electricity from Solar Power Plant is also treated as eligible industry under the schemes setback for the state however, with a conducive policy environment, the government of administered by the State’s Industries Department and for incentives available to Rajasthan aims to fulfill its renewable energy targets. According to IEEFA in the report, industrial units under the Rajasthan Investment Promotion Scheme. “Transforming Rajasthan’s Electricity Sector”, if Rajasthan fulfils its solar power potential, it could be one of the largest contributors to India’s target of 450GW of renewable RAJASTHAN GOVERNMENT’S SPECIFIC FOCUS ON STORAGE energy by 2030 – and provide a model for other states to follow. • The state is cognizant of the unpredictability and variability associated with green power and accordingly has taken steps to ensure its seamless integration into the grid, so that grid stability is not endangered. It’s focus is on deployment of appropriate technologies and implementation of ancillary services. • To reduce the variability of output of solar power injected into the grid and to ensure availability of firm power for a particular period, the State will promote Solar Power Projects with storage systems in form of battery storage, pumped hydro storage or any other grid interactive storage system. The State will

18 19 ReNeW POWER IN RAJASTHAN ReNew Power’s relations with Rajasthan stretch back to the year 2013 when the company III. Highlights From The Webinar commissioned its first wind plant at Bhakrani (14.4 MW). Since then, ReNew has steadily expanded its footprint, across both wind and solar, and contributed to the upsurge in renewables capacity in Rajasthan. Some of its earliest wind farms are located in the state – at Devgarh, Bhesada and Dangri. The Bhesada farm was one of the first to have turbines operating at hub heights of 120m and also marks another innovation – hybrid (lattice + tubular) steel towers. ReNew also has a 390 MW solar portfolio in the state which is scheduled to grow in the years ahead. The recently commissioned 50 MW project located in Bhadla Solar Park is the first project in the country to be connected with the ISTS network of Northern India. ReNew also recently commissioned its 250 MW solar plant at Bikaner for MSEDCL, thereby crossing 5 GW of commissioned capacity pan India. Sensitive to the largely arid climate in the state, to save water, the company has deployed robotic module cleaning in most solar sites. Currently, ReNew’s combined portfolio of wind and solar in the state stands at 747.8 MW, with a total investment of approx. Rs. 4500 Cr. Renew has a committed pipeline of 2300 MW to be set up in Rajasthan over the next two years, with a total investment of Rs. 9000 Cr.

RENEW IN RAJASTHAN – AT A GLANCE • Wind portfolio- 357.8 MW • Solar portfolio- 390 MW • Capital Invested- INR 4500 Crores • Transmission lines- 245 km • Roads built- 250 km • Jobs created- 6,000 • Number of citizens impacted by CSR programmes- 59,000

ReNew’s presence in Rajasthan goes beyond business and as a socially responsible corporate, ReNew has designed and implemented a water management and conservation programme covering 35 villages in Jaisalmer district. This includes construction of household “taankas”, desilting of ponds and distribution of bio-sand filters to boost rain water harvesting and supply of safe drinking water. This initiative has benefitted over 2500 households. The company also used solar micro grids to electrify government schools in Jaisalmer, enabling rural children to benefit from modern education. Currently, ReNew is also working across 5 villages in Bikaner on a range of programmes covering education, women empowerment, and water conservation.

20 21 WHAT THEY SAID…. B. D. Kalla, Hon’ble Minister for Energy, Government of Rajasthan “As India pursues the target of 450 GW from renewables by 2030, I believe that Rajasthan will be at the forefront of this capacity expansion. Availability of most sunny days in a year, high insolation, strong wind potential and large tracts of government as well as private non-cultivable barren land make Rajasthan a sought-after destination for renewable energy developers. Rajasthan currently lies 3rd in terms of solar capacity and the state Govt., under Hon’ble Chief Minister Shri Ashok Gehlot, is fully committed to taking the state to the top position. By 2024-25, we target setting up 30000 MW of solar capacity and 750 MW from wind and hybrid in the state. The Solar Policy 2019 and Wind & Hybrid Energy policy 2019 offers several relaxations and incentives aimed at making Rajasthan a leading renewable energy hub. I would invite all RE developers and domestic solar manufacturers to invest in Rajasthan, assuring all support and a highly conducive business climate. I have no doubt that Rajasthan is going to be at the centre of the next phase of growth for India’s renewable energy sector as it expands in capacity and turns AtmaNirbhar. Rajasthan is ready to play a key role in this future phase of growth of renewables in India. Padharo Mhare Desh!!”

Sumant Sinha, CMD, Renew Power Babul Supriyo, “India has taken a leadership role in climate change issues and we are Hon’ble Union Minister of State, Environment, Forests and fortunate to have a dynamic Prime Minister, Hon’ble Shri Narendra Climate Change Modi who is leading the whole effort from the front. His clarion call “Rajasthan is leading the endeavor of deploying renewable energy, for AtmaNirbhar Bharat is a great opportunity to create a robust in collaboration with the Central Govt. and addressing climate manufacturing ecosystem for the Indian RE sector. The target set by change issue is a significant way. Rajasthan has the potential to Hon’ble prime Minister is not just bold but also visionary. However, be a major contributor to Mission 450 GW which will not only help targets won’t be met just by the central government’s efforts and reduce cost of energy in the country but will also make the world a states will need to play an equally important role. Rajasthan can greener place. It is not an easy target to meet; we need to spell out play a pivotal role in the growth of RE capacity in India given the clearly our plans for achieving this target, it is only then that we will comparatively easier availability of land and high solar radiations. be confident. Despite the pandemic renewable energy sector has ReNew Power already has set up about 750 MW of RE capacity not been affected due to must-run status. During this tough period, in Rajasthan besides a committed pipeline of 2300 MW to be renewable energy capacity auctions have seen overwhelming completed over the next couple of years at a total investment response from investors, the sector has shone like bright light in exceeding INR 13000 crores. This reflects the faith we have in the this period. We must keep moving in the right direction and work to state and its policies.” expand renewable energy capacity, to be able to mitigate impacts of climate change and reduce pollution. The Govt. of India is committed to extending all possible support to Rajasthan in developing its RE potential.”

22 23 Vaishali Nigam Sinha, THE PANEL DISCUSSION Chair, ReNew Foundation Shed some light on Rajasthan’s power sector. How has the sector evolved in the past “It is like music to the ears for stakeholders in the sector to hear of decade? the deep commitment of the Central as well as State governments As far as Rajasthan is concerned, we have more than 2500 MW of to RE and climate change space. When leaders have their heart in installed capacity of renewable energy. In Rajasthan’s RE sector, the the place, things go well. I am indeed very grateful to our leaders challenge is of energy forecasting and a lot more is to be done as far as for their commitment which has been instrumental in the sector’s forecasting of wind and solar energy is concerned. The state has come growth. Going beyond business, we hope we can impact the lives of out with a very friendly investment policy in 2019, which incentivized people in and around places where our generation is happening, and investors in various ways. Recently, the CM declared that all agricultural we are working closely with the government to improve quality of demand will be met during daytime. We need to add capacity to fulfil life at the bottom of the pyramid. With guidance and support from this demand. the Centre and states, our task becomes easier. We are working with various stakeholders to do our bit. The bar is set high, and events like this motivate us to accelerate our contributions.” You have seen investors present in the state, what is attracting investments to Rajasthan and what can Rajasthan to better to further attract investments in the RE sector? Rajasthan is my home state, it is one of the best endowed regions in M. M. Ranwa, CEO, terms of solar and wind. As far as investors are concerned, there is Rajasthan Urja Vikas Nigam Limited availability of wind and solar and land. Most developers speak highly “In Rajasthan’s RE sector, the challenge is of energy forecasting of in terms of project execution and acquisition of land and and a lot more is to be done as far as forecasting of wind and solar local clearances which reduces uncertainty of execution. It provides energy is concerned. The state has come out with a very friendly demand certainty and mitigates risks. Similarly, Rajasthan scores high investment policy in 2019, which incentivized investors in various in certainty of policy and certainty of project execution which make it ways. Recently, the CM declared that all agricultural demand will be a good state with less uncertainty. met during daytime. We need to add capacity to fulfil this demand.” What has been the experience on ground? What can the state do further attract Vishal Mehta, investments? MD and Partner, Boston Consulting Group Our experience so far has been good in Rajasthan, not just availability of land and solar irradiation but policy certainty. Other states’ approval “Rajasthan is one of the most endowed regions in terms of solar take time, but in Rajasthan land acquisition gets done and we move fast and wind. As far as investors are concerned, there is surety of to project execution. Majority of initial projects came in Rajasthan with availability of wind and solar and land. It provides demand certainty a lot of experienced contractors, and there was no problem of monsoon and mitigates risks. Rajasthan scores high in certainty of policy and flooding projects. Projects get done fast and returns are guaranteed. ease of on ground project execution.”

What is Rajasthan’s way forward? Sanjay Varghese, As far as requirement for solar power is concerned, the government’s President and Head of Solar Business, ReNew Power declaration of giving farmers energy during daytime is critical. This “Our experience so far has been good in Rajasthan, not just implies solar capacity will have to be enhanced to meet agricultural availability of land and solar irradiation but policy certainty. Other demand. Sufficient availability of storage is required to reduce states’ approval take time, but in Rajasthan land acquisition gets intermittency. Hybrid power will be better solution for optimum done and we move fast to project execution.” utilization of the transmission system. At the end of 2030, we will be requiring another 3000 MW of solar power to meet agricultural demand. We have an old wind power set up in Rajasthan of around 500 MW, we should repower these old wind systems. There is also a

24 25 challenge of balancing of RE Power. We don’t have balancing force for State might tend to lose out, so any discussions happening? absorbing of RE, so this needs policy attention. Not so clear if the waiver will go away. Because centre is keen on promoting RE. Once the deadline comes nearer, we will get more clarity. ISTS waive going away in post 2023 scenario. ISTS has been helping get investments. How will the waiver be going away, how will this affect? ISTS going away will affect the business model of Rajasthan which is heavier on solar. There is a threat due to the way current model is set up. Post ISTS waiver going away, there is a need for discussion What more the state government can do for development of solar and on creating energy-based pricing mechanism. As planners and policy wind park? makers you have to assume the worst and put in place measures for How the state handles the issue of ISTS waiver will be critical. It will mitigation. There is need for moving in the direction of creating more be good if the ISTS waiver does not go away. But Govt. needs to be hybrid capacity and more storage. Rajasthan will feel the need for more prepared, assume such a scenario and frame appropriate policies. storage. The state should start innovating on hybrid and storage. It would be a shame if the kind of resources which Rajasthan has goes wasted as it can well be the first state to go Net Zero. There is a lot of potential for downstream electricity utilization within the state. Cooling and heating solutions both need to come from renewables. Rajasthan can lead the way for changing its energy profile.

What are your thoughts with reference to new model of SECI bidding emphasizing hybrids and storage linked tenders? SECI has shown strong indications of market moving in that direction. SECI sees more and more hybrid projects coming up as a possibility. We have 25-30 GW of projects coming till ISTS waiver goes away. We will see more storage and hybrid models coming up. We have 9-10 states in India which are renewable rich while others have to import, Lot of scope for development in Rajasthan w.r.t hybrid and storage. The good news is investors have become very bullish post pandemic, lot of capital chasing the capacity in the sector.

Is your procurement strategy affected by ISTS going away? Prices will increase and procurement process of Rajasthan will be affected. We would rely on intrastate generation in our own transmission system. As far as demand post pandemic is concerned, demand is on the rise. No reduction in demand. We would like to procure RE power as prices become more competitive.

26 27 IV. Media Coverage

RAJASTHAN PATRIKA – JAIPUR CITY EDITION THE HINDU https://www.thehindu.com/news/ national/other-states/rajasthan- districts-headquarters-to-be- developed-as-green-energy-cities/ article33570229.ece

ENERGETICA INDIA https://www.energetica-india.net/ news/all-33-district-headquarters- in-rajasthan-to-be-developed-as- green-energy-cities-bd-kalla

DAINIK NAVJYOTI – JAIPUR EDITION

EQ MAGAZINE INDIA https://www.eqmagpro.com/ rajasthan-ready-to-lead-indias- renewable-energy-march-to-450- gw-rajasthan-minister-of-energy/

28 29 About ReNew Foundation ReNew Foundation is the philanthropic arm of ReNew Power, working towards creating sustainable communities through access to clean energy in rural and semi-rural areas.

Established in the year 2018, ReNew Foundation aims to scale up its efforts in the area of energy access with a focus on last-mile electrification in rural areas.

ReNew Foundation aims to develop sustainable solutions in the area of renewable energy which focus on energy access and thought leadership and to transform education through energy access and sensitize the youth towards the importance of using renewables.

Some of the thematic areas where ReNew Foundation works besides thought-leadership include amplifying the Lighting Lives program of ReNew Power and enhancing renewable energy advocacy among students through workshops and training sessions.

ReNew Foundation is a Section 8 company registered under the Companies Act 2013.

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