Lok Sabha Question No. 1443 (UNSTARRED), answered on 2016-11-24
Subject: Subsidy for Power Generation
Ministry: NEW AND RENEWABLE ENERGY
Asked by: SAUGATA ROY

## 1443.  PROF. SAUGATA ROY

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

(a) the amount of subsidy being given to the producers and consumers for power generation from wind, solar and other renewable energy sources;

(b)  whether  the  Government  has  taken  or  proposes  to  take  any  steps  to  speed  up  research  and  development activities to bring down the cost and to develop technologies in the renewable energy sector; and (c) if so, the details thereof?

## ANSWER

## THE  MINISTER  OF  STATE  FOR  POWER,  COAL,  NEW  AND  RENEWABLE  ENERGY  &  MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a): The  Ministry  of  New  and  Renewable  Energy  (MNRE)  provides  incentives/subsidy/central  financial assistance  to  the  producers  and  consumers  for  power  generation  from  wind,  solar  and  other  renewable  energy sources under various Renewable Energy Programmes as per details given in Annexure.

(b): Yes,  Madam. The MNRE  has  been supporting Research and Development (R&D)  to various R&D/academic institutions,  NGOs,  industries,  etc.  in  the  field  of  solar,  wind,  biogas,  biofuel,  Hydrogen,  Fuel Cells, geothermal, etc. for technology development  and  demonstration leading to commercialization.  A comprehensive  policy  and  guidelines  for  research,  development  and  demonstration  (RD&D)  for  new  and renewable energy sector is in place. It has a provision for financial assistance of up to 50% of the project cost for the  projects  that  involve  partnership  with  industry  /  civil  society.  However,  for  a  proposal  from  academic institutions, Government/non-profit research organizations and NGOs, the MNRE provides upto 100% funding. In addition, the MNRE has established three institutes, namely, National Institute of Solar Energy (NISE), National Institute of Wind Energy (NIWE) and National Institute of Bio Energy (NIBE) for R&D, testing and evaluation in solar, wind and bioenergy, respectively.

In  order  to  review  the  progress  of  on-going  projects  and  to  identify  thrust  areas  for  RD&D,  the  MNRE organized a day long 'Brainstorming Consultation Meeting on RD & D' on 5th January 2016, which was attended by key subject experts from R&D/academic institutions, industries and concerned MNRE Group/Divisional Heads. In the meeting, 'Thrust Areas with Action Plan for RD&D' for support by MNRE was prepared and  uploaded at MNRE web for project preparation and implementation. It has strong emphasis on industry association and also collaboration for R&D projects for technology development leading to commercialization.

The  MNRE has spent Rs. 306.65 crores on R&D projects in solar, small wind and hybrid, biogas, biofuel, hydrogen, fuel cells and small hydro implemented by various R&D/academic institutions, industries during the last four years and the current year.

(c): The focus areas for R&D are solar energy, wind hybrid systems, biogas, biofuels, hydrogen, fuel cells and related  components.  R&D  projects  undertaken  have  strengthened  R&D/  academic  institutes,  industries  for furthering RD&D for technology development for commercialization. In solar photovoltaics, the focus has been on indigenous development of solar cells with improved efficiency at par with international level, with cost reduction. Crystalline silicon solar cell of 18% efficiency has been developed at lab scale. R&D efforts are continuing for improvement of efficiency  with  cost  reduction.  R&D  in  solar  thermal  power  provided  feedback  on  operational aspects of the technology for further development. R&D in hybridization of solar and wind is being pursued for ensuring  improved  energy  supply  from  renewable  energy.  In  addition,  R&D  efforts  are  going  on  for  design, development and demonstration of hydrogen and fuel cells for power generation and other uses.

The  R&D  efforts  have  led  to  design  and  development  of  solar  water  heating  system,  solar  cookers,  solar photovoltaic system, biogas plants, improved biomass cookstoves, gasifiers, biomass cogeneration, etc.

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED  QUESTION NO. 1443

TO BE ANSWERED ON 24.11.2016

## SUBSIDY FOR POWER GENERATION

Incentives/Subsidy/Central  Financial  Assistance  (CFA)  available  under various schemes/programmes for power generation from wind, solar and other renewable energy systems.

## A.     GRID-INTERACTIVE RENEWABLE POWER PROGRAMMES:

## 1.  Wind Power Projects:

| Generation Based Incentive (GBI)   | Rs.0.50 per unit subject to max of Rs.1.00 crore/MW for producers.   |
|------------------------------------|----------------------------------------------------------------------|

## 2.  Solar Power Projects:

| Solar PV Power projects under Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II, Batch- I of total 750 MW with Viability Gap Funding (VGF) support from National Clean Energy   | Minimum Project Capacity10MW Maximum Project Capacity50MW   | VGF support up to 30% of Project Cost limited to Rs.2.50 Cr/MW based on reverse bidding process for power producers.                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Grid Connected Rooftop Solar PV Power Projects in residential, institutional and social sector.                                                                                        | Benchmark support cost Rs.75,000/- per kWp.                 | Central Financial Assistance (CFA) up to 30% of benchmark cost for the General Category States/UTs and up to 70% of benchmark cost for Special Category States/UTs, i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands is provided to consumers for installation of grid connected solar rooftop projects. Incentives are also provided for promotion of roof top SPV power in Government sector. No subsidy is provided for commercial and industrial |
| Grid connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs).                                                                                                  | Total size of the scheme 1000MW.                            | VGF support to the CPSUs/Govt. Organisations (producers) at a fixed rate of Rs.1 crore/MW for projects where domestically produced cells and modules are used and Rs. 0.50 crores/MW in cases where domestically produced modules are used.                                                                                                                                                                                                                                                                                               |

## 3. Small Hydro Power (SHP) Projects

Support to new SHP projects (producers) in State sector:

| Category                       | Above 100 KWand up to 1000KW   | Above1MW-25MW                                    |
|--------------------------------|--------------------------------|--------------------------------------------------|
| Special category and NE States | 75,000 per KW.                 | 7.5 Crores / MWlimited to `20 crore per project. |
| Other States                   | 35,000 per KW.                 | 3.5 Crores / MWlimited to `20 crore per project. |

Support to new SHP projects (producers) in private / co-operative / joint sector:

| Areas                                                         | Upto25MW                                        |
|---------------------------------------------------------------|-------------------------------------------------|
| N E Region, J &K, H.P. &Uttarakhand (Special Category States) | 1.5 crore/ MWlimited to `5.00 crore per project |
| Other States                                                  | 1.0 crore/ MWlimited to `5.00 crore             |

per project

## 4. Biomass Power and Bagasse Cogeneration Projects (producers):

Private / Joint / Cooperative / Public Sector Sugar Mills:

| Type of Projects                                                                                          | Special Category and NE States                                                                 | Other States                                                                                           |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| Biomass Power projects                                                                                    | Rs.25 lakh perMW*                                                                              | Rs.20 lakh perMW*                                                                                      |
| Bagasse Co-generation                                                                                     | Rs.18 lakh perMW*                                                                              | Rs.15 lakh perMW*                                                                                      |
| Co-generation projects by cooperative/public sector sugar mills 40 bar &above 60 bar &above 80 bar &above | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWof surplus power (maximum support Rs. 6.0 cr / project) | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWof surplus power (maximum support of Rs. 6.0 crore per project) |

*Maximum support of Rs. 1.50 crore per project.

## 5.  Waste to Energy Projects:

| Type of Waste         | Central Financial Assistance to Producers                    |
|-----------------------|--------------------------------------------------------------|
| Municipal Solid Waste | Rs.2.00cr./MW, Max. Support 10 Cr. /project.                 |
| Urban Waste           | Rs.2.00cr./MW, Max. Support 5 Cr. /project.                  |
| Industrial waste      | Rs. 0.20cr to Rs. 1.00cr/MW, Max. Support Rs.5.00cr/project. |

## B.     OFF-GRID / DECENTRALIZED RENEWABLE ENERGY PROGRAMMES

|   S.No | Programme                                                     | CFA/Subsidy to consumers (limited to following ceiling or 40% of the cost of the system, whichever is less)                                                                                                    |
|--------|---------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      1 | Biogas Power (off-grid) 3kW - 20kW 20kW - 100kW 100kW - 250kW | Rs.40,000/- Per kW Rs.35,000/- Per kW Rs.30,000/- perKW                                                                                                                                                        |
|      2 | Solar Photovoltaic Systems                                    | CFA/subsidy to consumers:  Subsidy of 30% of project cost.  For solar light through NABARD, Regional Rural Banks (RRB) and other commercial bank 40% subsidy is available.                                   |
|      3 | Small Aero-Generators and Hybrid Systems                      | CFA/Subsidy: Rs.1.00 lakh per kW to consumers                                                                                                                                                                  |
|      4 | Micro-hydel plants/ Water mills                               | Subsidy/CFA to producers:  Rs. 1.25 lakh/kW for Micro-hydel upto 100 kW.  Rs.0.50 lakh per watermill for mechanical application  Rs.1.50 lakh per watermill for electrical application                      |
|      5 | Biomass Gasifier                                              | CFA/Subsidy to consumers:  Rs. 15,000 /kW (with 100% producer gas engine)  Rs. 2,500/kW for duel fuel engine  Rs. 2.0 lakh per 300 kW for Thermal Applications  20% higher CFA for special category states |