Approach for Energy Sector has Been Reach, Reinforce, Reform & Renewable Energy: PM Modi

Prime Minister Narendra Modi addressed a webinar for consultation towards effective implementation of Union Budget provisions in the power and renewable energy sector. Stating that the sector plays a big role in the progress of the country and contributes to both ease of living and ease of doing business.

In his address, Modi said that the government’s approach for the sector has been holistic and four mantras have guided the approach i.e Reach, Reinforce, Reform and Renewable energy. 

“For reach, last-mile connectivity is needed. This reach needs to be reinforced by installation capacity, for that reforms are needed. Along with all this renewable energy is the demand of the time,” PM Modi said.

Elaborating further, the Prime Minister said that for reach, the Government is focused on reaching every village and every household. With regard to capacity reinforcement, he pointed out that India has become a power surplus country from power deficit country. In recent years, India has added 139 GW capacity and reached the goal of one nation-one grid-one frequency. Reforms like UDAY scheme with an issue of Rs 2 lakh 32 thousand crore worth bond were undertaken to improve financial and operational efficiencies. For monetising the assets of the Powergrid, Infrastructure Investment Trust – InvIT was established which will soon be open for investors.

He pointed out that renewable energy capacity has been enhanced two and a half times in the last six years. Solar energy capacity has increased by 15 times. “And the latest Budget has shown unprecedented commitment towards investment in infrastructure. This is evident in Mission Hydrogen, domestic manufacturing of solar cells and massive capital infusion in the renewable energy sector.”

Referring to the PLI scheme, the PM informed that high efficiency solar PV modules are now part of the scheme and that the Government is committed to invest Rs 4500 crore in that. Further highlighting that under the PLI Scheme, 10,000 MW capacity integrated solar PV manufacturing plants will be operationalised with estimated investment of Rs 14 thousand crore. 

“This is likely to increase demand for locally produced materials like  EVA, solar glass, backsheet, Junction box. We want to see our companies become global manufacturing champions, not just to fulfil local demands,” he said.

The Government has also indicated the commitment of additional capital infusion worth Rs 1000 crore in Solar Energy Corporation of India (SECI) to promote investment in the renewable energy sector. Similarly, the Indian Renewable Energy Development Agency (IREDA) will get additional Rs 1500 crore worth of investments.

The Prime Minister also touched upon the efforts to improve the Ease of Doing Business in the sector. He asserted that with reforms in regulatory and process framework, outlook towards power sector has improved significantly. “The Government treats power as a separate sector, not as part of the industry sector. This innate importance of power is the reason for the government’s intense focus on making power available to everyone.”

The Government is also working to remove problems in the distribution sector. For this, a policy and regulatory framework for Discoms is in offing. The consumer should be able to choose his supplier as per performance like any other retail commodity. The Prime Minister also said that work is on to free the distribution sector of entry barriers and licensing for distribution and supply. Efforts are underway for a prepaid smart meter, feeder separation and system upgradation, Modi pointed out.

The Prime Minister concluded by stating that already, 4 GW solar capacity is installed through rooftop solar projects, 2.5 GW will be added soon. 

“40 GW solar power is aimed in next one and half years through rooftop solar projects,” he said.

With 4 GW installed so far, and 2.5 GW in development. The PM has highlighted the target for perhaps one of the pain points of the renewable energy ministry – in the rooftop solar segment. Which so far, has struggled to completely take off. Following on with the PM’s optimistic outlook, only 33.5 GW of rooftop solar capacity needs to be commissioned in the next 1.5 years. A capacity that is nearly equivalent to the country’s utility-scale solar capacity so far. A segment we consider to be flourishing!