With Regulatory & Policy environment intact, the Renewable Energy Segment in India is Fastly becoming a Mainstay for Power Segment than Erstwhile being a Fringe.
The power sector in India has witnessed a transformation with progressive policy-level & effective implementation of directives. These changes have offered significant opportunities and have generated faith enough of various industry stakeholders and market players to invest in India’s power segment. Not only on the central front but at the state level too, the policy and regulatory environment have played a vital role in attracting investments. The renewable energy policies of the states are implemented on such similar grounds and have been very much responsible in shaping the RE market of the states. In this aspect, southern region states in India have been quite successful in creating an “ Ease of doing business” environment through their regulatory regimes especially for wind and solar power segments. Right from the resource availability to land availability, power evacuation infra to power sale security, getting exemption from certain charges & duties to getting incentives, the southern region states have topped the list of many power developers for investing into the renewable power segment. It is pertinent to note that Andhra Pradesh hold an investment potential of close to USD 2.12 Billion & USD 4.62 Billion in the solar and wind power generation till FY2022, of which safely 40% is the contribution of policy & regulatory environment. Further, the state of Karnataka holds about USD 3.6 Billion of investment opportunity in the small hydro segment to which the contribution of policies is the maximum.
BUSINESS CASE OFFERED BY POLICIES & REGULATIONS TO VALUE CHAIN PLAYERS
- North Eastern Region Power System Improvement Project (NERPSIP)- The project aims to strengthen the Intra-State transmission & Distribution infrastructure of six states of North Eastern Region. These projects shall get commissioned by November 2020 and investment of INR 1040.17 Crores has been raised for the same
- Measures such as – declaring LHPs (>25 MW) as renewable energy source, introducing hydro purchase obligation as separate entity, bringing down hydro power tariff, budgetary support for flood moderation/storage hydro electric projects and enabling infra support has been approved by the Indian government to promote hydro
- Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) is being implemented well across the country. Under DDUGJY, 4505 new projects of INR 42676.67 crore have been sanctioned
- CERC announces regulations for implementation of interstate transmission system in the country