In Short : RK Singh announces the anticipation of a massive investment of Rs 17.05 lakh crore in the renewable energy sector. This significant commitment reflects the growing interest and financial support for advancing India’s renewable energy goals and fostering sustainability.
In Detail : The minister underscored the sector’s growth by stating that India’s power generation capacity is expected to surpass 800 GW, a significant leap from the current 428 GW
In a significant development, Union Minister R K Singh revealed on Monday that the power and renewable energy sector is set to witness a staggering investment of Rs 17.05 lakh crore. This comes on the heels of an already substantial investment of around Rs 16.93 lakh crore since 2014, with Rs 11.2 lakh crore allocated to generation, distribution, and transmission sectors, and Rs 5.73 lakh crore in the renewable energy domain.
Addressing the media, Singh highlighted that 80 GW of thermal power generation capacity is currently under construction and is anticipated to be operational by 2030. Additionally, there are ambitious plans for the construction of 99 GW of renewable energy capacity.
The minister underscored the sector’s growth by stating that India’s power generation capacity is expected to surpass 800 GW, a significant leap from the current 428 GW.
Singh elaborated on the new regulations introduced as the Electricity (Amendment) Rules 2024. Under these rules, consumers with a specified load and Energy Storage Systems (ESS) can establish, operate, and maintain dedicated transmission lines without the need for a licence. This move is expected to pave the way for a new category of Bulk Consumers, fostering affordability and grid reliability.
The rules extend this facility to bulk consumers and energy storage systems (of not less than 25 MW), facilitating seamless connectivity to the grid without the necessity of obtaining a license for a dedicated transmission line.
Furthermore, the rules address the issue of open access charges, ensuring that consumers, including industries, benefit from competitive electricity rates. The new regulations outline methodologies for determining various open access charges, such as wheeling charges, state transmission charges, and additional surcharges.
To encourage open access, the rules specify a gradual reduction and eventual elimination of additional surcharges within four years for consumers availing General Network Access or Open Access.
In a bid to bolster the financial health of distribution companies (discoms), the rules aim to eliminate revenue gaps and ensure cost-reflective tariffs. To achieve financial sustainability in the power sector, the rules mandate that tariffs be cost-reflective, barring any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariffs, except under exceptional circumstances like natural calamities.
The comprehensive set of rules is poised to reshape the power and renewable energy landscape, promoting investments, efficiency, and sustainable practices in the sector.
