India will enforce renewable generation targets as part of impending new energy policy Piyush Goyal, minister for coal, power and new & renewable energy (MNRE) has said adding that penalties for non-compliance with an existing scheme will soon be issued.
Speaking at the RE-Invest conference in New Delhi, Goyal said companies that had not met their Renewable Purchase Obligations (RPO) would be penalised. Goyal warned in July 2014 that enforcement of the RPO was necessary to help the country meet its renewable energy targets.
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The minister also confirmed the creation of a (Renewable Generation Obligation) for power producers in upcoming policy. This is thought to be a more practical approach to promoting clean energy than enforced purchases that have proved to be a financial burden on India’s distribution companies.
Goyal also moved to address the question of finance in India’s renewable energy market. The country has large ambitions but fears over the high cost of financing linger.
The MNRE said investments would “protected and encouraged” and would look to facilitate a better business environment.
A draft state-level solar policy, circulated by the MNRE for consulation, suggests that states will be asked to carry out financial assistance themselves including the creation of a Green Fund.
“The fund so created shall be utilized for organizing capacity building and training programme, creating awareness, offsetting the upfront capital cost, interest subvention through Banks and any other aspect deemed necessary for the easy adoption of solar plants in the State,” the policy states.
“Cost of capital is the only worry to me when we look at targets set for RE and #MakeinIndia“: H R Gupta #REExports pic.twitter.com/NIIpORk2hV
— RE-INVEST 2015 (@ReInvest2015) February 15, 2015
