27

STANDING COMMITTEE ON ENERGY(2021-22)
SEVENTEENTH LOK SABHAMINISTRY OF NEW AND RENEWABLE ENERGYEVALUATION OF WIND ENERGY IN INDIA

TWENTY-SEVENTH REPORTLOK SABHA SECRETARIATNEW DELHI

July, 2022/Sravana, 1944 (Saka)

TWENTY-SEVENTH REPORTSTANDING COMMITTEE ON ENERGY(2021-22)(SEVENTEENTH LOK SABHA)MINISTRY OF NEW AND RENEWABLE ENERGYEVALUATION OF WIND ENERGY IN INDIA

Presented to the Lok Sabha on 2nd August, 2022
Laid in the Rajya Sabha on 2nd August, 2022

LOK SABHA SECRETARIATNEW DELHI
July, 2022/Sravana, 1944 (Saka)
2

COE NO. 353

Price: Rs...................

©2022 by Lok Sabha Secretariat
Published under Rule 382 of the Rules of Procedure and Conduct of Businessin Lok Sabha (Sixteenth Edition) and Printed by__________.

3

REPORT
CONTENTS

Composition of the Committee (2021-22)
List of Abbreviations
Introduction
PART –INARRATION ANALYSISI
II

Introductory
Evaluation of Wind Energy
A. Wind Resource Assessment and Potential
B. Installed Capacity and Power Generation from Wind Energy
C. Tender/Bidding in Wind Energy Sector
D. Off-Shore Wind Energy
E. Wind-Solar Hybrid Projects
F. Manufacturing Base for Wind Energy
G. Incentives Available for Wind Energy Sector
H. Investment in Wind Energy Sector by IREDA
I. National Institute of Wind Energy
J. Renewable Purchase Obligation
PART-IIRECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE

Page
No.
5
7
8

9
11

33

ANNEXURESI
II

Minutes of Sitting of the Committee held on 14th December, 39
2021
Minutes of Sitting of the Committee held on 26th July, 2022
42

4

COMPOSITION OF THE STANDING COMMITTEE ON ENERGY(2021-22)

LOK SABHA
Shri Rajiv Ranjan Singh alias Lalan Singh - Chairperson
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.

Shri Gurjeet Singh Aujla
Shri Devendra Singh Bhole
Shri Harish Dwivedi
Shri Sanjay Haribhau Jadhav
Shri Kishan Kapoor
Dr. A. Chella Kumar
Shri Sunil Kumar Mondal ^Shri Uttam Kumar Reddy Nalamada
Shri Ashok Mahadeorao Nete
Shri Praveen Kumar Nishad
Shri Velusamy P.
Shri Parbatbhai Savabhai Patel
Shri Gyaneshwar Patil@
Shri Jai Prakash
Shri Dipsinh Shankarsinh Rathod
Shri Gnanathiraviam S.
Shri Bellana Chandra Sekhar
Shri Shivkumar C. Udasi
Vacant**Vacant#RAJYA SABHA
Shri Ajit Kumar Bhuyan
Shri Rajendra Gehlot *Shri Muzibulla Khan
Shri Maharaja Sanajaoba Leishemba
Shri S. Selvaganabathy *Dr. Sudhanshu Trivedi
Shri K.T.S. Tulsi
Vacant$Vacant &Vacant^^5

SECRETARIAT
1.
2.
3.
4.

Dr. Ram Raj Rai
Shri R.K. Suryanarayanan
Shri Kulmohan Singh Arora
Ms. Deepika

Joint Secretary
Director
Additional Director
Committee Officer_________________________________________________________________________________________________________^ Nominated as Member of the Committee w.e.f. 01.12.2021 vice Smt. Sajda Ahmed.
@ Nominated as Member of the Committee w.e.f. 07.02.2022 vice Shri Ramesh Chander
Kaushik.
** Shri Akhilesh Yadav ceased to be Member of the Committee consequent upon his
resignation from membership of the Lok Sabha on 22.03.2022.
# Vacant since constitution of the Committee.
* Nominated as Member of the Committee w.e.f. 11.11.2021.
$ Shri Jugalsinh Lokhandwala resigned from the membership of the Committee on 02.12.2021.
& Shri T.K.S. Elangovan ceased to be Member of the Committee consequent upon his
retirement from the Rajya Sabha on 29.06.2022.
^^ Shri Sanjay Seth ceased to be Member of the Committee consequent upon his retirementfrom the Rajya Sabha on 04.07.2022.

6

BE
CEA
CFA
Committee
CoP-21
CoP-26CUF
DISCOM
DPR
EEZ
FDI
FiT
GBI
GW
IPPs
IREDA
ISTS
JERC
KWh
LC
LCOE
LiDAR
LVRT
Ministry
MNRE
MSEDCL
MW
NIWE
NOC
NPA
PLF
PM KUSUM
PPA
PSU
PV
R&D
RECs
RLMM
RPO
SECI
SERC
VGF
WTG

LIST OF ABBREVIATIONS
Budget Estimates
Central Electricity Authority
Central Finance AssistanceStanding Committee on Energy (2021-22)
21st Session of the Conference of Parties held at Paris in 2015
26th Session of the Conference of Parties held at Glasgow in 2021
Capacity Utilisation Factor
Distribution Company
Detailed Project Report
Exclusive Economic Zone
Foreign Direct Investment
Feed in Tariff
Generation Based Incentive
Giga-watt
Independent Power Producers
Indian Renewable Energy Development Agency
Inter State Transmission System
Joint Electricity Regulatory Commission
Kilo Watt hour
Letter of Credit
Levelized Cost of Energy
Light Detection and Ranging
Low-Voltage Ride-through Capability
Ministry of New and Renewable Energy
Ministry of New and Renewable Energy
Maharashtra State Electricity Distribution Company Limited
Megawatt
National Institute of Wind Energy
No Objection Certificate
Non Performing Asset
Plant Load Factor
Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan
Power Purchase Agreements
Public Sector Undertaking
Photo Voltaic
Research and Development
Renewable Energy Cerificates
Revised List of Models and Manufacturers
Renewable Purchase Obligations
Solar Energy Corporation of India
State Electricity Regulatory Commission
Viability Gap Funding
Wind Turbine Generator
7

INTRODUCTION
I, the Chairperson, Standing Committee on Energy, having beenauthorized by the Committee to present the Report on their behalf, present
this Twenty-Seventh Report of the Committee on ‘Evaluation of Wind Energy
in India’ pertaining to the Ministry of New and Renewable Energy.
2.
The Committee took evidence of representatives of the Ministry of New
and Renewable Energy, Indian Renewable Energy Development Agency(IREDA), Solar Energy Corporation of India (SECI) and National Institute ofWind Energy (NIWE) on 14th December, 2021. The Committee wish to express
their thanks to the representatives for appearing before the Committee andfurnishing the desired information in connection with the issues relating to
the subject.
3.
The Report was considered and adopted by the Committee at theirsitting held on 26th July, 2022.
4.
The Committee place on record their appreciation for the assistancerendered to them by the officials of the Lok Sabha Secretariat attached to theCommittee.
5.
For the facility of reference and convenience, the observations andrecommendations of the Committee have been printed in bold letters in
Part-II of the Report.

New Delhi
26th July, 2022
Sravana 4, 1944 (Saka)

Rajiv Ranjan Singh alias Lalan Singh
Chairperson,
Standing Committee on Energy

8

REPORT
PART INARRATION ANALYSISCHAPTER IINTRODUCTORY
1.1

India has fourth highest wind power installed capacity in the World.

The Ministry has furnished that a total of 733.30 GW capacity of wind power
have been installed worldwide (as on December 2020). The installed capacityof wind power in some of the leading Countries (as of 2020) are as under:
S.
No.
1
2
3
4
5
6
7
8
9
10
11

Country

Installed Wind Power Share of Wind Energy inCapacity (GW)
their Electricity Mix (%)
PR China
282
6.12
USA
117.708.31
Germany
62.20
19.90
India
38.60
4.50
Spain
27.10
22.87
United Kingdom
24.70
21.07
France17.40
6.74
Brazil17.20
9.36
Canada
13.60
5.35
Italy
10.80
7.44
Rest of World
122
-

1.2

In 2015, due to commitments made at CoP-21 in Paris, the Governmentof India has set a target for installation of 175 GW of renewable energy
capacity by the year 2022, which includes 60 GW from wind power. Recently,
at CoP-26 in Glasgow, India has again made a commitment to increase its nonfossil fuel based installed energy capacity to 500 GW by 2030.
1.3

In response to a question about the expected share of wind energy inthe new target of 500 GW of installed non-fossil fuel based energy capacity,
the Ministry stated as follows:9

“Central Electricity Authority (CEA) in its Report on ‘Optimal
Generation Capacity Mix for 2029-30’ has estimated 140 GW of installedwind power capacity by 2030.”
1.4

When asked about the action-plan of the Ministry in order to achieve

the new target, the Ministry stated as follows:“The Ministry has constituted a committee under the cochairmanship of Secretary, MNRE and Secretary, Power to prepare
Roadmap for Mission 500 GW. The first meeting of the committee washeld on 13.01.2022 and accordingly, the following four sub-groups havebeen constituted:
Sub Group-I – Assess the requirement of Regulatory changes, RPO
enforcement, Storage elements and Market Design to achieve 500 GW
non fossil fuel capacity in a least cost manner.
Sub Group-II – Assess the role of Open access, Decentralized PMKUSUM, Roof Top Solar, Hydro Power in achieving the target of 500 GW.
Sub Group-III – Assessment of additional renewable energy capacity
required for green Hydrogen production.
Sub Group-IV – Assessing the investment in transmission required forachieving 500 GW non-fossil fuel capacity in a cost effective manner,
including use of storage elements in transmission planning.”
1.5

Currently, India has the total wind power installed capacity of 40.71 GW(as on 31st May, 2022). The share of wind power in the total installed capacity
mix in the Country has also been increasing steadily. It has gone up from 6%
in 2007-08 to 10.2% as on 30th October 2021. However, in spite of theincrease in wind power capacity in the Country, only a fraction of theCountry’s wind energy potential has been tapped till date.

10CHAPTER IIEVALUATION OF WIND ENERGY
A.

Wind Resource Assessment and Potential:

2.1

About the Wind Resource Assessment, the Ministry furnished thefollowing:“The Wind Resource Assessment Programme has been in
existence since 1986. Nearly 3000 number of wind monitoring stations
have been installed for data collection. Out of this, more than 800
number of wind monitoring stations have been installed by National
Institute of Wind Energy and currently 56 monitoring stations areoperational.”
2.2

The wind resource assessment conducted by the National Institute ofWind Energy estimates wind power potential of 302.20 GW at 100 meter
above ground level and 695.50 GW at 120 meter above ground level in theCountry. Out of this, potential of about 214 GW has been estimated with morethan 30% CUF and about 57 GW with more than 35% CUF. The State andUnion- territory wise wind power potential in the Country, as furnished by
the Ministry, is given below:
State

Andaman& Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Daman, Diu, Dadra
Delhi
Goa
GujaratHaryanaWind potential at
100 m above
ground level
8.43
44228.6
0
0
0
0
76.59
0
0
0.84
84431.33
011Wind potential at
120 m above
ground level
1277
74906
274
246
3650
0
348
0
0
8
142560419

Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
KeralaLakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
OdishaPuducherry
PunjabRajasthan
SikkimTamil Nadu
Telangana
TripuraUttar Pradesh
Uttarakhand
West Bengal
Total in MW
Total in GW

00055857.36
1699.567.67
10483.88
45394.3400003093.47152.83018770.49
033799.65
4244.290002.08
302251.49
302.20151
30124155
2311
31
15404
98213
0
1
0
0
8346
382
278
127756
0
68750
24835
0
101
54
1050
695509695.502.3 When asked about the reasons for setting a lower installation target forwind power than solar power given the huge wind power potential andstronger domestic manufacturing in the wind sector, the Ministry stated asunder:“Wind resource is highly site specific and available in eight states
only, while solar resource is distributed across the Country. The windresources assessment carried out by the National Institute of Wind
Energy (NIWE) estimated a total wind energy potential of 695 GW at
120 meter hub height. However, it may be noted that, presently in orderto make the tariff commercially attractive, the wind power installations
sites chosen are those which have an annual average Capacity
Utilization Factor (CUF) of at least 30%. Thus, considering availability ofsites with an annual average of 30% CUF and above excluding the area
where wind farms already exists and other exclusions such as protected12

areas, airports, elevations etc., the total estimated wind energy potential
would be much lower. Further, about 97% of these high wind resource
potential sites are concentrated in eight states namely Andhra Pradesh,
Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan,
Telangana and Tamil Nadu. Majority of wind rich sites of the Country
have already been exploited to a large extent. The recently market
discovered tariffs have already started moving upwards and hadreached up to Rs. 3 per kWh & thereafter stabilized near Rs. 2.70-2.80
per kWh during the last bids conducted by SECI. In addition right of way
for approach roads & evacuation infrastructure is also becoming one of
the bottlenecks for onshore wind projects. With best windy sites been
already utilized, the tariff is expected to have upward movements foronshore wind energy in future.”
B.

Installed Capacity and Power Generation from Wind Energy:

2.4

As per Central Electricity Authority, the installed capacity of wind

power and solar power was 21042.58 MW and 2631.93 MW respectively as
on 31st March, 2014.
2.5

Against the overall target of 60 GW and 100 GW to be achieved by

December 2022, the cumulative installed capacity of wind power and solar
power are 40706.38 MW and 56951.33 MW as on 31st May, 2022.
2.6

About the possibility of achievement of the target by December 2022,

the Secretary, Ministry of New and Renewable Energy, deposed during theevidence as under:“It is true that our target is 60 GW by the year 2022. As per thecurrent situation, we may not be able to reach 60 GW. This is not only
true for wind, but also for the overall target for Renewable Energy. The
delays are due to COVID and the impact of solar supply chain
disruptions in China. Extension of five and a half months is given for the
Scheduled Commissioning and additional extension on case-to-casebasis is being considered for some projects as special dispensation tooffset the effect of COVID. As a result, it will take us some more time toreach 175 GW.”
13

2.7

The details of year wise capacity addition of Wind Energy, as furnishedby the Ministry, are given below:Year2010-11
2011-12
2012-132013-142014-152015-16
2016-172017-18
2018-192019-20
2020-212021-22
2.8

Capacity Addition (MW)2349.25
3196.66
1700.30
2078.882311.775
3423.055502.37
1865.235
1480.965
2117.785
1503.30
1110.525

The year wise share of Wind Energy in total installed power capacity in

the Country, as furnished by the Ministry, is given below:
As on

31.03.11
31.03.12
31.03.13
31.03.14
31.03.15
31.03.16
31.03.17
31.03.18
31.03.19
31.03.20
31.03.21
31.12.21
31.03.22
2.9

Total Installed
Power Capacity(MW)
173626.41
199877.03
223343.57
248554.39
274904.37
305162.50
326832.53
344002.39
356100.19
370106.46
382151.22
393389.46
399496.61

Wind Power(MW)% Wind Power of
Total Capacity

14155.94
17352.60
19052.90
21131.7823443.555
26777.39
32279.76
34144.995
35625.9637743.745
39247.045
40082.70
40357.58

8.15
8.68
8.53
8.50
8.53
8.77
9.88
9.93
10.00
10.20
10.27
10.19
10.10

The annual share of Wind Energy in the total power generated in theCountry, as furnished by the Ministry, is given below:

14

Years
2013-142014-152015-16
2016-172017-18
2018-192019-20
2020-212021-22(upto December, 2021)

Total
Generation(MU)
1020209.10
1110392.21
1173603.14
1241689.15
1308145.74
1376095.79
1389160.93
1381855.15

Wind
Generation(MU)
31264.80
33768.30
33029.39
46004.34
52666.0962036.38
64646.38
60149.95

Percentage of Wind
Generation in total
Generation
3.06
3.04
2.81
3.70
4.03
4.51
4.65
4.35

1113712.35

58127.26

5.22

2.10 Regarding slow pace of installation of wind power as compared to solar
power, the Secretary deposed as under:“It is true that, in comparison to Solar, the condition of wind issomewhat bad. ……..One of the main reasons for this is that wind power
is comparatively more expensive than solar. It is also true that after the
introduction of e-reverse bidding and e-reverse auction, the pace ofwind projects have not been the same as before. We are in constantconversation with developers and their concern is that wind project
development has certain factors which make some developers todeliberately quote lower prices for competition and then, they back out.
We are now taking measures to prevent such thing.”
2.11 In response to a question about the viability of small wind energy
projects, the Ministry stated as under:“The small wind energy projects (i.e. sub MW scale) are being
installed in the country for captive consumption or third party sale. The
wind turbine models of 225 kW and 250 kW capacities are listed in
Revised List of Models and Manufacturers (RLMM) issued by MNRE.”
2.12 On being asked about the possibility of off-grid wind power projects, theMinistry furnished the following:“The Offgrid wind power units are technically feasible to meet the
local energy requirements. As on date, there is no specific scheme/
programme for installation of offgrid wind power projects. The captive
15

wind power plants are installed in the Country on the basis of theirtecho-economic viability. The capacity of captive wind power plants
installed in major states are as under:
Gujarat2203.845 MW
Rajasthan
198.390 MW
Maharashtra
129.30 MW(under state policy 2008 & 2015)

Andhra Pradesh
Tamil Nadu
Karnataka

309.67 MW
6252.875 MW
810.270 MW

2.13 When asked about the impact of lockdown imposed due to Covid-19 on
Wind Energy Sector, the Ministry stated as under:“The wind power projects have been delayed due to COVID-19
pandemic during the last and current financial year (i.e. 2020-21 and2021-22). The industry reported that there has been supply chain
disruption and shortage of skilled manpower during the pandemic.
Further, the second surge of pandemic was followed by monsoon
season in various parts of the Country. It has delayed thecommissioning of projects and targets in the wind energy sector.
Around 9 GW of wind power projects with an estimated investment of
Rs 63,000 crore were under various stages of implementations during
the pandemic, which were negatively impacted.
Considering the hardship caused to the developers andunprecedented situation arisen due to pandemic, Ministry has given
extension of 5 months and 2.5 months on account of COVID-19
restrictions during 1st and 2nd wave respectively. Further, the activities
related to renewable energy projects (including wind energy projects)
were covered under essential activities and were allowed to continueeven during lock down situation. Further, in order to provide relief towind power project developers on account of supply chain disruption
due to second COVID-19 surge, the Ministry decided that for wind
power projects for which the PPA was signed and orders for WTGs wereplaced before 15th June, 2021, the implementing agencies can allow anadditional time extension up to 3 (three) months in the Scheduled
Commissioning Date. In addition, Ministry also permitted part
commissioning of wind power projects in lot of 10 MW or more, in placeof stipulated minimum capacity of 50 MW for part commissioning in theguidelines.”
16

C.

Cost of Installation and Plant Load Factor (PLF) of Wind Energy
Power Plants

2.14 When asked about the per megawatt cost for installation of wind energy
project vis-à-vis other power projects, the Ministry furnished the following:
Projects

Solar Projects
Wind Projects
Small Hydro Projects
Large Hydro Projects
Bio Power Projects
Coal based Thermal Projects
Gas based Thermal Projects
Hydrogen Energy Projects
Wind-Solar Hybrid Plants

Per Megawatt cost for
installation(in Rs. Crore)
3.5 – 46–7
7.8-11
6-20
5-6
8.34
5.11
6.75-9(excluding renewable capacity)
5.73

2.15 In response to a question about the plant load factor of wind power
projects vis-à-vis other power projects, the Ministry stated as under:“The typical plant load factor (PLF) for wind power is 30-40%.
Whereas, the PLF of thermal power plants and Hydro power plants isaround 60%. For solar power plant, it is in the range of 18-25%.
Although the gas based power plants are designed to operate at a higher
PLF, but due to non-availability of adequate gas supply, the actual PLF
of these plants are in the range of 20-25% in the Country.”
C.

Tender/Bidding in Wind Energy Sector:

2.16 The wind energy capacity additions till 2017 were through Feed-inTariff mechanism and subsequently, the tariff regime has been shifted fromFeed-in-Tariff to bidding route. The Ministry furnished that the total funds
disbursed under Generation based Incentive (GBI) Scheme is Rs. 7159.867
crore as on 30th November, 2021; total yearly fund outflow is Rs. 1000 crore
to Rs. 1200 crore and estimated liability to be disbursed till the year 2027 is
Rs. 5781 crore.
17

2.17 The Government issued ‘Guidelines for Tariff Based Competitive
Bidding Process for Procurement of Power from Grid Connected Wind Power
Projects’ on 08.12.2017 and amended on 16.07.2019 with an objective toprovide a framework for procurement of wind power through a transparent
process of bidding including standardization of the process and defining ofroles and responsibilities of various stakeholders. These Guidelines aim toenable the Distribution Licensees to procure wind power at competitive rates
in a cost effective manner.
2.18 On being asked about the government agencies/PSUs involved in
conducting bidding for wind energy projects, the Ministry stated thefollowing:“The bids with respect to wind energy projects have been
conducted by Solar Energy Corporation of India, NTPC Ltd. andDISCOMs of the States of Gujarat, Tamil Nadu and Maharashtra.”2.19 Major developers in wind energy sector, as furnished by the Ministry,
are given below:

















Adani Green Energy Limited,
ReNew Power Private Limited,
Inox Green Energy Services Limited,
Green Infra Wind Energy Limited,
Ostro Kutch Wind Private Limited,
Mytrah Energy India Private Limited,
Alfanar Energy Private Limited,
Betam Wind Energy Private Limited,Powerica Limited,
Spring Energy Private Limited,
Srijan Energy Systems Private Limited,
BLP Energy Private Limited,
Sita Kabini Renewables Private Limited,
Ecoren Energy India Private Limited,
CLP India Private Limited,
JSW Future Energy Ltd, etc.
18

2.20 To enable DISCOMs of the States to fulfill their non-solar Renewable
Purchase Obligation (RPO), through purchase of wind power at a tariff
determined by transparent bidding process, MNRE through SECI has
auctioned wind power projects in 11 tranches. Further, States of Gujarat,
Maharashtra and Tamil Nadu have also auctioned Wind power capacities.
Details of these projects, as furnished by the Ministry, are given below:
Sl.
No
1.
2.
3.
4.
5.

Bidding

SECI-ISECI-II
SECI-IIISECI-IV
Tamil
Nadu
6.
Gujarat(GUVNL)7. Maharashtra(MSEDCL)8.
SECI-V
9.
NTPC
10.
SECI – VI
11. SECI – VII
12.
Gujarat
GUVNL
Ph.-II
13. SECI–VIII
14.
SECI IX
15.
SECI X
16.
SECI XI
Total

D.

Bid
Capacity
(MW)
1000
1000
2000
2000
500

Capacity
awarded(MW)
1049.9
1000
2000
2000
450

CapacityNet
Capacity
Bidding
Min.
cancelled capacity Commissioned Agency
Tariff
(MW)
(MW)
(MW)
(Rs./kwh)
50
999.9
999.9
Central
3.46
19.9
980.1
750.1
Central
2.64
0
2000
950.2
Central
2.44
0
2000
636.7
Central
2.51
0
450
49.5
State
3.42

500

500

30

470

470

State

2.43

500

500

0

500

274.4

State

2.85

1200
1200
1200
1200
1000

1190
1150
1200
480
202.6

0
1150
0
0
0

1190
0
1200
480
202.6

0
0
386.5
103.5
165

CentralCentralCentralCentral
State

2.76
2.77
2.82
2.79
2.80

1800
2500
1200
1200
20000

440
970
1200
1200
15532.500001249.9

440
970
1200
1200
14282.600004785.8CentralCentralCentralCentral

2.83
2.99
2.77
2.69

Off-Shore Wind Energy:

2.21 The Government had notified the ‘National Offshore Wind Energy
Policy’ as per the Gazette Notification dated 6th October 2015. As per thepolicy, Ministry of New and Renewable Energy will act as the nodal ministryfor development of Offshore Wind Energy in India and work in close
coordination with other government entities for development and use ofmaritime space within the Exclusive Economic Zone (EEZ) of the Country ineffective manner for production of grid quality electrical power for national
consumption. National Institute of Wind Energy (NIWE), Chennai has been
19

designated as the nodal agency to execute various pre-feasibility activities
relating to resource assessment, surveys and studies within EEZ (Exclusive
Economic Zone), demarcation of offshore potential blocks and facilitating
offshore wind energy project developers for setting up offshore wind energy
farms.
2.22 When asked about the progress made with respect to assessment andharnessing of off-shore wind energy, the Ministry stated as under:“The National Institute of Wind Energy (NIWE), Chennai had
commissioned a LiDAR (Light Detection and Ranging) equipment inNovember, 2017 for measurement of wind resource off the coast ofGujarat. Wind measurement data collection for two years has been
completed and also validated with a ground mounted wind monitoring
station at Jafrabad, Gujarat. NIWE has already published a report basedon two years of collected data from the LiDAR. Further, required
geophysical study for an area of about 365 Sq. km has been completed
along with geotechnical studies for five bore holes in gulf of Khambhat,
off Gujarat Coast. A rapid Environment Impact Assessment study has
also been conducted through the National Institute of Oceanography
for proposed one GW offshore wind energy project off Gujarat Coast.
Further, Ministry is developing strategy and roadmap for installation of
offshore wind projects off the coast of Gujarat and Tamil Nadu.”
2.23 On being asked about the potential of off-shore wind energy in theCountry, the Ministry stated the following:“Based on the preliminary assessment from satellite data anddata available from other sources, 8 (eight) zones each in Gujarat andTamil Nadu have been identified as potential offshore zones for
exploitation of offshore wind energy potential. Initial assessment ofoffshore wind energy potential within the identified zones has been
estimated to be about 70 GW off the coast of Gujarat & Tamil Nadu
only.”
2.24 In response to a question about the per megawatt cost and tariff of offshore wind projects, the Ministry furnished the following:20

“At present, the exact cost is not ascertained as there is nooperational or under implementation offshore wind energy project in
the Country. However, as per the Global offshore wind energy scenario,
the per megawatt cost of offshore wind project would be in the rangeof Rs 20 crore to 25 crore and it may vary depending on various
parameters such as technology, wind & marine conditions, distancefrom the shore etc., Further it is observed from the global scenario thatthe cost of the offshore wind projects reduces gradually as the
cumulative installed capacity increases.
Considering the above, the Levelized Cost of Energy (LCoE) as per
the Global offshore wind energy scenario would be in the range of Rs.
6.5–10 initially. Based on the global trend, it has been observed thatwith increasing economies of scale, more competitive supply chainsand further technological improvements, the tariff can reducesignificantly for subsequent projects.”
2.25 On being asked whether the cost and tariff will be uniform for all thecoastal states, the Ministry stated as under:“The initial rates cannot be uniform for all coastal states since thecost of energy depends on various factors such as wind speed &bathymetry which are dynamic in nature. Further, geologicalparameters such as geophysical, geotechnical features, oceanography
and met-ocean are different for different sites and play a critical role indetermination of price. However, economies of scale, competitive
supply chains and further technological improvements can reduce thecost of energy and the rates may be competitive among the coastal
states in future.”
2.26 When asked about the cost effectiveness and capacity utilization factor
of off-shore wind projects vis-à-vis on-shore wind projects, the Ministrystated as follows:“As per the initial analysis carried out by the National Institute ofWind Energy (NIWE), the annual average CUF of offshore wind energy
projects in India ranges between 35%–55 % for Tamil Nadu and 35%40% for Gujarat. In the case of onshore wind energy projects in India,
the annual average CUF would range between 25%–40%. Currently,

21

onshore wind power projects are more cost effective, in comparison tothe offshore wind energy.”
2.27 In response to a question about the need to develop off-shore wind
power when it is much costlier than on-shore wind power, the Secretaryduring the evidence, deposed as under:“Mainly there are three reasons why we should develop offshore
wind power – first; our targets are so high that we will need every
source of energy including offshore wind power. Second; one of theadvantages of developing offshore wind energy would be that the
manufacturing of offshore wind turbines will be encouraged in the
country. Third; due to certain characteristics of offshore wind energy
such as seasonality etc., the contribution of offshore in firm wind power
will be higher.”
2.28 On being asked about the quantum of Viability Gap Funding required tomake the off-shore wind energy projects viable, the Ministry furnished thefollowing:“A total Viability Gap Funding (VGF) of Rs. 14,212 Crores is
estimated to establish 3 GW of offshore wind energy projects (1.0 GW
off the coast of Gujarat and 2.0 GW off the coast of Tamil Nadu). In
addition, separate transmission and evacuation infrastructure with anestimated cost of Rs. 13,500/- crores will be required to be built
through Central Transmission Utility to enable power evacuation
through these off shore wind power projects.”
E.

Wind – Solar Hybrid Projects:

2.29 About the Wind-Solar Hybrid Policy, the Ministry furnished thefollowing:“The Ministry issued National Wind-Solar Hybrid Policy on 14th
May, 2018. The main objective of the policy is to provide a frameworkfor promotion of large grid-connected wind-solar PV hybrid system for
optimal and efficient utilization of wind and solar resources,
transmission infrastructure and land. The wind-solar PV hybrid systems
will help in reducing the variability in renewable power generation andachieving better grid stability. The policy also aims to encourage new22technologies, methods and way-outs involving combined operation ofwind and solar PV plants.”
2.30 The Ministry informed the Committee that the wind-solar hybrid
projects of total 4250 MW capacity have been awarded under hybrid bids.
The details of hybrid projects awarded by SECI and Maharashtra Discom(MSEDCL) as on 28.02.2022 are as under:
Sl.
No.
1.

2.

3.

4.

5.

Bid

Capacity
Capacity
BiddingAwarded Commissioned Agency
(MW)
(MW)
Wind Solar
840
100
CentralHybridTranche-I
Wind Solar
HybridTranche-II
Wind Solar
HybridTranche-III
Wind Solar
HybridTranche-IV

600

101.18

1110

0

1200

0

MSEDCL

500

0

Total

4250

201.18CentralBid Winners

Tariff

SBE Renewables Ten
Pvt. Ltd (450 MW),
Mahoba Solar (UP) Pvt.
Ltd(390 MW)
Adani (600 MW)

2.672.69

Central ABC Renewable(380 MW),
Adani (600 MW),AMP Energy (130 MW)
CentralNTPC (450 MW),NLC (150 MW),
Project Ten (450 MW),
Azure (150 MW)
State
Tata Power (300 MW) &Azure (200 MW)

2.69

2.41

2.342.35

2.62

2.31 About its new initiative regarding Wind and Wind-Solar Hybrid Park
Scheme, the Ministry furnished the following:“In order to overcome challenges such as land, NoCs from
Ministry of Defence and transmission infrastructure and to speed up
the installation of wind power projects, a new Mode-9 for‘Development of Wind Parks/Wind-Solar Hybrid Park’ is proposed
under the existing solar park scheme. These Parks will provide a 'plug
and play' solution (availability of land, transmission, necessary
infrastructure and approvals in place) to the project developers for
installing wind/wind-solar hybrid power projects. The minimum
capacity of a park may be 50 MW.
The Ministry will provide following central financial assistance tothe park developer:23

a)

CFA upto Rs 25 Lakh per Park to the park developer for DPR
preparationb)
CFA @Rs 20 Lakh per MW or 30% of the park development costto park developer, whichever is lower.
c)
The grant will be managed and released by SECI on behalf of
MNRE for which SECI will be given a fund handling fee of one percent of the grant released.
Wind and Wind-Solar Hybrid Park Scheme is proposed to be notified asa separate mode (mode-9) under Solar Park Scheme.”
2.32 The details of potential sites for wind and wind-solar hybrid parks, as
furnished by the Ministry, are given below:
State

Tamil
Nadu

Karnataka

GujaratRajasthan
MadhyaPradeshTelangana
AndhraPradeshDistrictArea(sq. km)available

CUF (%)
@ P50

68
169
351

36.3
35.1
40.8

340
845
1755

547

34.9

2735

530
1020

36.3
34.3-35.1

2650
5100

924
269
2900
2349
374
220

34.7
34.9
35.3
37.5- 39.4
30.4
31.6

4620
1345
14500
11745
1870
1100

543
361

31.2-32.2
34.9

2715
1805

Tirunelveli
Tuticorin
Coimbatore & partially
Palakkad (Kerala)
Tiruchirappalli &Perambalur
Tumakuru
Chitradurga &Davangere
Bellary & Davangere
Chitradurga
Junagadh & Porbandar
Kutch
BarmerWest Nimar
Ranga Reddy
Anantapur[assuming 5
MW/sq.km]

Total (MW)F.

Installable
Potential (MW)53125

Manufacturing Base for Wind Energy:

2.33 In response to a question about the status of domestic manufacturing inwind energy sector, the Ministry stated the following:
24

“The Wind Turbine Generator technology has evolved and stateof-the-art technologies are available in the Country for the
manufacturing of wind turbines. Around 70-80% indigenization has
been achieved with strong domestic manufacturing in the wind sector.
Ministry has put in place a procedure to enlist type and quality certified
wind turbines under ‘Revised List of Models & Manufacturers’ (RLMM).
It also mandates that Hub and Nacelle assembly / manufacturing facility
shall be in India. All the major global players in this field have theirpresence in the Country and over 35 different models of wind turbines
are being manufactured by 15 different companies, through (i) joint
ventures under licensed production (ii) subsidiaries of foreigncompanies, and (iii) Indian companies with their own technology. The
unit size of machines has gone up to 3.6 MW.”2.34 When asked about the current annual production capacity of windturbines in the Country, the Ministry stated as under:“The current annual production capacity of wind turbines in theCountry is around 12000 MW. Wind turbines and components areexported to the US, Australia, Europe, Brazil and Asian Countries. The
list of wind turbine manufacturers with units in the Country is asfollows:
Manufacturer

GE India Industrial
Suzlon Energy Ltd.
Vestas Wind Technology
Siemens Gamesa Renewable
Power
Envision Wind PowerTechnologies
Inox Wind Ltd.
Senvion Wind Technology
PASL Wind Solution (P) Ltd
Nordex India Pvt. Ltd.
Regen Powertech
Siva Wind Turbine India
Para Enterprises Pvt. Ltd./Country of Turbine
originSize (MW)

USA
India
Denmark
SpainGermany
China

2.4 – 2.7
2.1 – 2.8
2.0 – 2.2
2.0 – 3.6

Estimated
AnnualManufacturing
Capacity (MW)
1000
3000
1000
3000

2.3 – 2.5

600

India
2.0
Germany
2.3
India
0.8 – 1.5
Germany
3.0
India
1.5 – 2.0India
0.225 – 0.25
India
0.75
25

1600
400
840
1050
50
150

Pioneer Wincon Energy Systems
Emergya Wind Turbine

The
Netherlands
Total

G.

1.0

100
12790

Incentives Available for Wind Energy Sector:

2.35 About the steps taken by the Government to promote Wind Energy, theMinistry furnished the following:• “Permitting Foreign Direct Investment (FDI) up to 100 percent under
the automatic route;• Waiver of Inter State Transmission System (ISTS) charges for interstate sale of solar and wind power for projects to be commissioned by
30th June 2025;• Declaration of trajectory for Renewable Purchase Obligation (RPO) up
to the year 2022;• Setting up of Ultra Mega Renewable Energy Parks to provide land andtransmission to renewable energy developers on a plug and play basis;• Laying of new transmission lines and creating new sub-station
capacity for evacuation of renewable power;• Setting up of Project Development Cell for attracting and facilitating
investments;• Standard Bidding Guidelines for tariff based competitive bidding
process for procurement of Power from Grid Connected Solar PV andWind Projects;• Government has issued orders that power shall be dispatched against
Letter of Credit (LC) or advance payment to ensure timely payment by
distribution licensees to renewable energy generators;• Conducting skill development programmes to create a pool of skilled
manpower for implementation, operation and maintenance of
renewable energy projects;• Concessional custom duty exemption on certain components required
for manufacturing of wind electric generators;• Generation Based Incentive (GBI) is being provided to the windprojects commissioned on or before 31st March, 2017;• Technical support including wind resource assessment andidentification of potential sites through the National Institute of Wind
Energy, Chennai."

26

H.

Investment in Wind Energy Sector by IREDA:

2.36 Details regarding funding done by IREDA for wind power projects, as
furnished by the Ministry, are given below:
Year

Sanctions Disbursement(in Rs.
crore)(in Rs. crore)

2460.50
3369.131524.94
1610.55
524.72741.102535.592823.49
1557.161057.11900.65261.41

Cumulative 27403.04

18620.08

2016-172017-18
2018-192019-20
2020-212021-22

No. of Sanctioned Commissioned
Projects Capacity
Capacity(in MW)(in MW)

12
20
9
12
5
1

806.501426.10515.70892.4099.40
148.501058.00
430.80755.10159.6073.50
547.56746

10540.34

7301.14(as on30-11-2021)

2.37 When asked about the reasons for decline in IREDA’s sanctioned anddisbursed amount for wind power projects, the Ministry stated the following:“There was paradigm shift in the tariff model from Feed-in-Tariff
to competitive bidding in 2017. Due to this there was a transition from
relatively high tariff of ₹ 4-5/unit to ₹ 2.5-3/unit and caused a
reduction in profitability of the wind projects. The annual average
installation prior to introduction of competitive bidding has been in therange of about 2.5 GW (3 years prior to competitive regime). However
post competitive bidding, the annual installation came down to around
1.5 GW. In FY17, the installation was 5.5 GW and in the very next year
i.e in FY18, the installation came down to around 1.8 GW. After the
introduction of competitive bidding, there has been a drop in thenumber of loan applications and as a result the total loan sanctioned
has been lower compared to earlier years. During the competitive
bidding regime, the size of wind power projects have considerablyincreased and these projects are being awarded to large IPPs/
developers. Such IPPs/developers have multiple options for securing
finance including international debts at competitive rates.”
2.38 About NPAs in Wind Energy Sector, CMD, IREDA deposed as under:“Our total NPA is Rs. 2,023 crore. Out of this, Rs 400 crore is forwind projects and Rs. 200 crore is for wind infrastructure which is27

given for development of manufacturing facility. Most of these NPAs arevery old, pertaining to the years 2002 to 2011. Two projects each havebeen declared NPAs in the years 2021-22 and 2020-21. The NPAs in thewind sector are mostly due to non-payment of money by the
DISCOMs. We have convened meetings with the distribution companies,
both under the chairmanship of Hon’ble Minister and also directly. We
are also writing letters to them. Apart from this, we do not have anyother medium to get the payment from them.”
2.39 The state-wise renewable energy dues of the wind energy developers as
per the Renewable Energy Dues Portal maintained by IREDA, as furnished by
the Ministry, is given below:
State

Andhra Pradesh
Tamil Nadu
Telangana
Karnataka
Maharashtra
Madhya Pradesh
Rajasthan
Others
Total

Renewable Energy Overdues
as on 31.03.2022(in Rs. Crore)
5198.912702.57
2083.621659.84858.83732.57655.19355.4614246.99

2.40 On being asked about the steps taken by the Ministry/IREDA to ensure
timely payment of dues, the Ministry stated as follows:“The Ministry has emphasized time and again that State DISCOMs
should ensure timely payment to the renewable energy generators.
Further, any such grievances received from the renewable energy
generators are taken up at appropriate level with the concerned Statefor early resolution of the same. Ministry of Power issued orders in
June/July 2019 for not allowing procurement of power from power
exchanges and not granting short term open access, if Letter of Credit(LC) provision which is part of the PPAs and acts as payment security
mechanism for generators, is not in place or payment is not made inadvance. As per orders, the LC shall be opened against the powerpurchases made from 1st August 2019 onwards. Further, Ministry of28

Power has notified ‘The Electricity (Late Payment Surcharge) Rules,
2021’ dated 22nd February, 2021.
In addition, IREDA has a scheme to extend financial assistance inthe form of Short-Term Loans to DISCOMs at preferential rates wherein
the funds could be utilized for Payment to Renewable Energy
Generators. During the financial year 2020-21, IREDA has disbursed Rs.
3,610 crores to various State DISCOMs. Similarly, during financial year
2021-22, IREDA has disbursed Rs. 1,875 crores to State DISCOMs, as on
31.01.2022.”
I.

National Institute of Wind Energy (NIWE)

2.41 NIWE which is the technical arm for wind power is an autonomous
institute under the aegis of the Ministry of New and Renewable Energy. As per
the Ministry, the following major activities are being carried out by NIWE:
•
•
•
•
•
•
•
•
•
•

“Wind Resource Assessment;
Development of an online registry of wind turbines installed
across the Country;
Wind Power Forecasting and Scheduling;
Wind Turbine Testing;
Offshore Wind Resource Assessment;
Geophysical and Geotechnical Studies;Standards and Certification;
International and National Training Courses;
Solar Radiation Resource Assessment;
Research and Development Activities.”

2.42 When asked about Research and Development (R&D) activities that are
being undertaken at National Institute of Wind Energy, the Ministry furnishedthe following:“In order to facilitate the wind energy sector and achievement oftarget, NIWE has taken up the following R&D activities:(a) Integrated Wind and Solar Resource Assessment throughmapping measurements: The outcome of the project includes
preparation of wind power potential of the Country at 120 meter & 150
meter above ground level and preparation of wind-solar hybrid map of
the Country at 120 m above ground level.
29

(b) Wind and Solar Power Forecasting: For better integration ofwind and solar generation, NIWE has established a ‘Centre for
Excellence in Forecasting’ and developed an in-house data management
system, monitoring system, forecast simulation tools and security
system for providing wind and solar power forecasting services toutilities. NIWE has created an operational forecast system withsimulation tools, to predict the wind power up to 7 days ahead.
(c) Met-Ocean Measurements (Wind, Wave, Tide, Current, Water
Level, etc.,) at Gulf of Khambhat (Gujarat) and Gulf of Mannar(Tamil Nadu) for fostering the growth of offshore wind in theCountry: The outcome of the project will foster the growth of offshore
wind energy in the Country in a systematic manner and boost investor
confidence, which will help in achieving the National targets in the
sector.
(d) Indo-Danish Research Project on ‘Maintenance and Repair
Strategy for Wind Energy Development’ in collaboration with
Denmark Technical University and industrial partners: The projectenvisages providing the Indian wind energy industry with guidelines
and approaches for efficient repair, ensuring the long-term integrity
and reliable work of wind turbines.
(e) R&D project titled ‘Optimized Design and Operation of Hybrid
Power Plant (HYBRIDize)’: The objective of the project is to provide aframework for promotion of a large grid connected wind-solar PV
hybrid system for optimal and efficient utilization of transmission
infrastructure and land, reducing the variability in renewable power
generation and achieving better grid stability.”
2.43 On being asked about the details regarding Budget Estimate, Revised
Estimate and Actual Expenditure with respect to National Institute of Wind
Energy during the last five years, the Ministry furnished the following:Year

Budget Estimate Revised Estimate(in Rs. Crores)(in Rs. Crores)
2016-17
25
25
2017-18
25
23
2018-1920
0
2019-20
17
23
2020-211.5
13.5
2021-22
20.84
20
30

Funds utilized(in Rs. Crores)
25
23
0
23
13.5
20

2.44 In response to a question about zero revised estimate and utilization in
the financial year 2018-19, the Ministry stated the following:“The low utilization of allocated funds during 2018-19 was due toactivities relating to offshore wind generation, such as Geo-technicalstudy of Offshore. Geo-Technical and Geo-Physical Survey, which was
being carried out for the first time in the Country and preparation ofnecessary technical documentation took up considerable time. Further,
low utilization of funds was also due to poor response to their tenders
floated for the procurement of equipment in order to develop thetesting facility for active power control, reactive control, frequency
response and other grid requirements in Wind Turbines, LVRT, etc.
During 2018-19, unspent balances from previous years were available
with NIWE to carry out activities.”
J.

Renewable Purchase Obligation

2.45 Regarding Renewable Purchase Obligation, the Ministry furnished thefollowing:
In pursuance of the Electricity Act 2003, the Tariff policy of 2016
mandates the Appropriate Commission to fix a minimum percentage ofthe total consumption of electricity in the area of a distribution licensee
for purchase of energy from renewable energy sources. Under the
Renewable Purchase Obligation (RPO) any obligated entity can meet its
RPO target by setting-up its own renewable energy generating plant,
purchasing power from any renewable energy generator or purchasing
Renewable Energy Certificates (RECs).”
2.46 When asked about the number of States that have fulfilled the targets as
per RPO trajectory, the Ministry stated as under:“Four states, namely- Himachal Pradesh, Karnataka, Andhra
Pradesh and Tamil Nadu have fulfilled the RPO target of 19% as per
National RPO trajectory notified by Ministry of Power for the year
2020-21.”2.47 On being asked whether the mechanism of RPO needs a relook as it is
not able to serve the intended purpose, the Ministry stated as under:
31

“A committee has been constituted for laying down the RPO
trajectory till 2030. The committee has submitted its report to Ministryof Power and the RPO trajectory upto 2030 is under finalization.”32

PART –II
OBSERVATIONS/RECOMMENDATIONS OF THE COMMITTEE
1.

The Committee note that the wind resource assessment conductedby the National Institute of Wind Energy has estimated wind power
potential of 302.20 GW at 100 meter above ground level and 695.50 GW
at 120 meter above ground level in the Country. Further, the Committee
have been informed that in order to make the tariff commerciallyattractive, the wind power installation sites chosen are those which havean annual average Capacity Utilization Factor (CUF) of at least 30%.
However, it has also been submitted that potential of about 214 GW has
been estimated with more than 30% CUF and about 57 GW with morethan 35% CUF. It implies that more than 200 GW of wind power can beinstalled in the Country with commercially attractive tariff. However,the cumulative installed capacity of wind power is only 40.71 GW as on
31st May, 2022 i.e. less than one fifth of the commercially exploitablepotential. The reasons attributed to the slow pace of capacity addition inwind energy sector are shift in tariff regime from Feed-in-Tariff toBidding Mechanism, aggressive bidding by developers, less availabilityof wind rich sites, etc. The Committee feel that only a fraction of theCountry’s wind potential has been tapped till date amounting to underutilization of available natural resource.
Moreover, the Committee observe that the installed capacity ofwind power was 21042.58 MW as on 31st March, 2014 which has
increased to 40706.38 MW as on 30th May, 2022 i.e. an increase of
93.45% in 8 years. On the other hand, installed capacity of solar power
has exponentially increased by 2063.86% during the same period. It
gives an impression that solar energy has been prioritized over windenergy despite heavy dependence on imports in solar energy sector.
Therefore, keeping in view the fact that India has strong domestic
33

manufacturing in wind energy sector and wind turbines along withother related components are exported to USA, Australia, Europe, Brazil
and other Asian Countries, the Committee recommend that the windenergy sector should be given due priority vis-à-vis solar energy sector
in order to maintain a balanced energy mix and also to allow the sector
to reach its potential.

2.

The Committee note that most of the wind energy potential of theCountry is available in only eight states namely, Andhra Pradesh,
Gujarat,Karnataka,

MadhyaPradesh,Maharashtra,

Rajasthan,

Telangana and Tamil Nadu. It has been submitted that wind resource ishighly site specific and majority of wind rich sites of the Country havealready been exploited to a large extent. In this regard, the Committee
are of the opinion that there is a need to repower the old wind turbines
which not only have completed their life-cycle but also occupy the best
wind sites. The Committee, therefore recommend that:i)

Old and less efficient wind turbines should be retired and replacedwith technologically advanced and more efficient wind turbines so as toensure maximum use of the available natural resource, land andevacuation infrastructure.
ii)

The Ministry should formulate policy for repowering of old

turbines so as to boost wind power generation in the Country.
iii)

The Ministry should also issue guidelines for recycling of the old

turbines.

3.

The Committee have been informed that the wind energy capacity

addition till the year 2017 was through Feed in Tariff (FiT) mechanismand subsequently, the tariff regime has been shifted from Feed-in-Tariff(FiT) to bidding route which has disrupted the installation of projects.

34Due to this shift, there was a transition from relatively high tariff of₹ 4-5/unit to more competitive tariff of ₹ 2.5-3/unit causing a reductionin profitability of the wind projects. Further, in the competitive bidding
regime, the size of wind power projects has considerably increased andthese projects are being awarded to large IPPs/developers. It has also
been submitted that some of the developers resort to aggressive
bidding, thus lowering the prices to unsustainable level and then backout of the project. In view of the Committee, there is an urgent need ofstrict action against such developers in order to maintain the sanctity ofthe bidding process and save the time and efforts of the bidding agencies
like Solar Energy Corporation of India, NTPC Ltd. etc. The Committee
therefore, recommend that provisions for imposition of heavy penalty
on developers should be made in case they back out unilaterally andpersistent defaulters should be blacklisted.

4.

The Committee note that ‘National Offshore Wind Energy Policy’

was notified on 6th October 2015 for development and use of maritime
space within the Exclusive Economic Zone (EEZ) of the Country for
production of grid quality electrical power for national consumption. It
has been submitted that eight zones each in Gujarat and Tamil Nadu
have been identified as potential offshore zones. Initial offshore windenergy potential within these identified zones has been estimated to beabout 70 GW off the coast of Gujarat & Tamil Nadu. However, no offshore wind project has been established in the Country till date. The
Committee observe that although, currently off-shore wind power iscostly in comparison to on-shore wind power, but off-shore wind energy
projects have significantly higher Capacity Utilization Factor ascompared to on-shore wind energy projects. Further, as per global
trends, the cost of the off-shore wind energy projects reduce gradually35

with an increase of cumulative installed capacity. Moreover, in order toachieve the enhanced target of 500 GW of non-fossil fuel based installed
energy capacity by 2030; there is a need to harness every possible
renewable energy resource. The Committee, therefore recommend that
off-shore wind energy projects should be established off-the coast ofGujarat and Tamil Nadu after proper environmental impact assessment
in a time bound manner. The Committee also desire that initially,
Viability Gap Funding may be provided in order to make off-shore windenergy projects viable and associated transmission infrastructure needs
to be built to enable power evacuation from these projects. The
Committee further desire that off-shore wind potential should also be
explored in coastal areas other than Gujarat and Tamil Nadu along
India’s 7,600 km long coastline.

5.

The Committee note that the Government issued National Wind-

Solar Hybrid Policy on 14th May, 2018 with the objective to provide aframework for promotion of large grid-connected wind-solar PV hybrid
system for optimal and efficient utilization of wind and solar resources,
transmission infrastructure and land. It has been submitted that windsolar hybrid projects with capacity of 4250 MW have been awarded, outof which 201.18 MW have been commissioned in the Country as on 28th
February, 2022. Further, fourteen sites in seven States have been
identified for development of Wind Parks/Wind-Solar Hybrid Park withinstallable potential of 53,125 MW. The Committee feel that wind andsolar energy are complementary to each other since solar power can beharnessed only during the day, while wind power projects are moreproductive during the night and thus, the capacity utilization factor of
the hybrid plants will be more as compared to standalone solar andwind energy plants. The Committee, therefore recommend that the36

Ministry should promote setting up of wind-solar hybrid power plants
so that the maximum of installable potential of more than 50 GW can beharnessed with added benefits of greater grid stability, lower generation
variability, efficient utilization of evacuation infrastructure andoptimum use of land resources.

6.

The Committee have been informed that IREDA has disbursed acumulative amount of Rs. 18,620.08 crore for 746 wind power projectsof 10,540.34 MW till 30th November, 2021 with NPAs of Rs. 600 crore inwind energy sector. It has been submitted that one of the reasons formost of these NPAs is non-payment of dues by Discoms. It is also
furnished that Rs. 14246.99 crore of wind energy developers are
overdue as on 31st March, 2022 mainly on the States of Andhra Pradesh,
Tamil Nadu, Telangana, Karnataka, Maharashtra, Madhya Pradesh,Rajasthan, etc. In view of the above, the Committee recommend that the
Ministry should pursue with the concerned State Governments in orderto ensure timely payment of dues to wind energy developers andintimate the Committee about the outcome thereof.

7.

The Committee note that in pursuance of the Electricity Act 2003,

the Tariff Policy of 2016 mandates the Appropriate Commission to fix aminimum percentage of the total consumption of electricity in the areaof a distribution licensee for purchase from renewable energy sources.
Under the Renewable Purchase Obligation (RPO), any obligated entity
can meet its RPO target by setting-up its own renewable energy
generating plant, purchasing power from any renewable energy
generator or purchasing Renewable Energy Certificates (RECs). It has
been submitted that only four states, namely - Himachal Pradesh,
Karnataka, Andhra Pradesh and Tamil Nadu have fulfilled the RPO

37

target of 19% as per National RPO trajectory notified by the Ministry ofPower for the year 2020-21. While expressing their displeasure about
the non-compliance of RPO trajectory, the Committee recommend that
the Ministry should actively pursue all the SERCs/JERCs for ensuring
RPO compliance and enforcing penalty against defaulting obligatedentities.

New Delhi
26th July, 2022
Sravana 4, 1944 (Saka)

Rajiv Ranjan Singh alias Lalan Singh
Chairperson,
Standing Committee on Energy

38

ANNEXURE-I
STANDING COMMITEE ON ENERGYMINUTES OF FIFTH SITTING OF THE STANDING COMMITTEE ON ENERGY(2021-22) HELD ON 14th DECEMBER, 2021 IN COMMITTEE ROOM No. ‘2',
PARLIAMENT HOUSE ANNEXE EXTENSION, NEW DELHI
The Committee sat from 1500 hrs to 1630 hrs.
LOK SABHA
Shri Rajiv Ranjan Singh alias Lalan Singh - Chairperson
2. Shri Devendra Singh Bhole
3. Shri Kishan Kapoor
4. Shri Ramesh Chander Kaushik
5. Shri Uttam Kumar Reddy Nalamada
6. Shri Ashok Mahadeorao Nete
7. Shri Velusamy P.
8. Shri Parbatbhai Savabhai Patel
9. Shri Dipsinh Shankarsinh Rathod
10. Shri Gnanathiraviam S.
11. Shri Shivkumar C. Udasi
RAJYA SABHA
12. Shri Rajendra Gehlot
13. Shri S. Selvaganabathy
14. Shri Sanjay Seth15. Dr. Sudhanshu Trivedi

1.
2.
3.

SECRETARIAT
Shri R.C. Tiwari- Additional Secretary
Shri R.K. Suryanarayanan- Director
Shri Kulmohan Singh Arora- Additional Director

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WITNESSESMINISTRY OF NEW AND RENEWABLE ENERGY
1. Shri Indu Shekhar Chaturvedi
Secretary
2. Shri Dinesh Dayanand Jagdale
Joint Secretary
PUBLIC SECTOR UNDERTAKINGS/AUTONOMOUS BODIES
3. Shri Pradip Kumar Das
CMD, IREDA
4. Ms. Suman Sharma
MD, SECI
5. Dr. K. Balaraman
DG, NIWE

2.

At the outset, the Hon’ble Chairperson welcomed the representatives ofthe Ministry of New and Renewable Energy, Indian Renewable Energy
Development Agency (IREDA), Solar Energy Corporation of India (SECI) andNational Institute of Wind Energy (NIWE) to the sitting and informed that thesitting had been called for evidence on the subject ‘Evaluation of Wind Energy
in India’. The Chairperson also apprised them about the provisions of
Directions 55(1) and 58 of the Directions by the Hon’ble Speaker.
3.

During the discussion, a power-point presentation was made by the

representative of the Ministry on the subject which, inter-alia, covered Wind
Resource Assessment, Wind Power Potential, Wind and Solar Power installedcapacity, Power Generation from Wind Projects, Incentives available for Wind
Sector, Generation based Incentive Scheme, Standard Bidding Guidelines2017, Falling Renewable Energy Tariff, Wind-Solar Hybrid Projects,
Innovative Bids for Promoting Wind Power, Make in India in Wind Energy
Sector, Revised List of Models and Manufacturers, Key Component
Manufacturers in India, Wind-Solar Hybrid Park Scheme, Potential Sites forWind-Solar Hybrid Parks, Wind Turbine Generators Quality Control Order,
Offshore Wind Potential Survey, Wind Power Projects funded by IREDA,
Research focus of NIWE, International Research Activities, etc.
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4.

The Committee, inter-alia, deliberated upon the following points withrepresentatives of the Ministry, IREDA, SECI and NIWE:

5.

a)Progress made in harnessing of off-shore wind potential so far;b)

Cost of installation of off-shore wind project vis-a-vis on-shore
wind project;c)Research and development activities undertaken andtechnological advancements made by NIWE in recent years to
support wind energy sector;d)Reasons for delay/cancellation of tenders related to Wind Energy
Projects;

e)Issues related to non-signing/cancellation/renegotiation of PPAs
in Wind Energy Sector;f)Issues related to delay in payment of dues to renewable energy
developers by Discoms;g)Quantum of investment by IREDA in wind energy sector and its
non-performing assets specifically related to wind power;h)Issues related to non-compliance of Renewable Purchase
Obligation;i)Action Plan to increase the installed capacity of renewable power
to 500 GW by 2030.

Hon’ble Members also sought clarifications on various other issues

relating to the subject and representatives of the Ministry, IREDA, SECI and
NIWE responded to the same. The Committee directed the representatives tofurnish written replies to all those queries which could not be readily
responded to by them at the earliest.
The Committee then adjourned.

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ANNEXURE – II
STANDING COMMITTEE ON ENERGYMINUTES OF THE THIRTEENTH SITTING
OF THE STANDING COMMITTEE ON ENERGY (2021-22)
HELD ON 26th JULY, 2022 IN HON’BLE CHAIRPERSON’S CHAMBER, ROOM
NO. 111, PARLIAMENT HOUSE ANNEXE EXTENSION, NEW DELHI
The Committee sat from 1530 hours to 1615 hours
LOK SABHA
Shri Rajiv Ranjan Singh alias Lalan Singh - Chairperson
2. Shri Gurjeet Singh Aujla
3. Shri Sanjay Haribhau Jadhav
4. Dr. A. Chellakumar
5. Shri Sunil Kumar Mondal
6. Shri Ashok Mahadeorao Nete
7. Shri Velusamy P.
8. Shri Gyaneshwar Patil
9. Shri Bellana Chandra Sekhar
10. Shri Shivkumar C. Udasi
RAJYA SABHA
11. Shri Ajit Kumar Bhuyan
12. Shri Rajendra Gehlot
13. Shri Muzibulla Khan
14. Shri Maharaja Sanajaoba Leishemba
15. Shri S. Selvaganabathy
16. Dr. Sudhanshu Trivedi
SECRETARIAT
1.
2.
3.

Dr. Ram Raj Rai
Shri R.K. Suryanarayanan
Shri Kulmohan Singh Arora

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Joint Secretary
Director
Additional Director

2.

At the outset, the Chairperson welcomed the Members and apprised

them about the agenda of the sitting. The Committee then took up for
consideration and adoption the following draft Reports:(i)

Report on the subject ‘Review of Power Tariff Policy - Need foruniformity in tariff structure across the Country’.
(ii) Report on the subject ‘Evaluation of Wind Energy in India’.
(iii) Report on action-taken by the Government on observations/recommendations contained in Seventeenth Report (17th Lok
Sabha) on the subject ‘Action Plan for Achievement of 175 GW
Renewable Energy Target’.
(iv) Report on action-taken by the Government on observations/recommendations contained in Eighteenth Report (17th Lok
Sabha) on the subject ‘Development of Coal Blocks allocated toPower Sector Companies’.
(v) Report on action-taken by the Government on observations/recommendations contained in Nineteenth Report (17th Lok
Sabha) on the subject ‘Delay in Execution/Completion of Power
Projects by Power Sector Companies’.
3.

After discussing the contents of the Reports, the Committee adopted theaforementioned draft Reports without any amendment/modification. The
Committee also authorized the Chairperson to finalize the above-mentioned
Reports and present the same to both Houses of the Parliament.
The Committee then adjourned.

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