Lok Sabha Question No. 1836 (UNSTARRED), answered on 2019-11-28
Subject: Renewable Power Producers
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Anubhav Mohanty

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOKSABHA

## UNSTARRED QUESTION NO 1836

TO BE ANSWERED ON 28.11.2019

## RENEWABLE POWER PRODUCERS

1836. SHRI ANUBHAV MOHANTY

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

- (a) whether the Government is aware of the fact that the renewable energy has contributed only a tenth of the electricity generated in 2018-19;
- (b)  whether  as  per  the  Central  Electricity  Authority,  distribution  companies  across  India  owed approximately Rs.10,000 crore to the renewable power producers;
- (c)  whether  the  Government has addressed this issue, if so, the details  thereof  and  if  not,  the  reasons therefor; and
- (d)  whether  the  Government proposes to incentivise the renewable power producers, if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY,  POWER and MoS for SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI R. K. SINGH)

- (a) A total of 126.75 billion units (BU) of electricity were generated through various renewable energy sources in the country which is around 9.21% of the total electricity generated from all sources i.e. 1376.08 BU during the year 2018-19.
- (b)  &  (c)  Yes  Sir.  Various  DISCOMs  of  states  namely  Andhra  Pradesh,  Tamil  Nadu,  Telangana, Karnataka,  Madhya  Pradesh,  Rajasthan  and  Maharashtra  have  outstanding  dues  to  renewable  energy generators  (Wind  and  Solar).  In  some  cases  payments  have  not  been  made  to  renewable  energy generators for over one year.

Noting delayed payments to power generators (including Renewable Power) in many states, the Ministry of Power (MoP), vide its Order No. 23/22/2019-R&R dated 28.06.2019 and subsequent corrigendum / clarifications  dated  17.7.2019  and  23.7.2019,  has  issued  directions  for  opening  and  maintaining  of adequate Letters of Credit (LC) as payment security mechanism where the provisions are there to do so in power purchase agreements (PPA) by the distribution licensees.

The  above  order  has  directed  load  despatch  centres  to  implement  the  existing  LC  provision  of  PPA strictly and restrict the regulated entity from procuring power from the power exchanges and Short Term Open Access (STOA). MNRE, vide its letter No. 336/19/2017-Wind-Part (I) dated 06.09.2019 requested Power System Operation Corporation (POSOCO) to issue necessary directions to RLDCs/SLDCs as per MoPs order dated 28.06.2019.

- (d) The steps taken  by the Government to incentivize renewable energy sector in the country inter alia, include the following:-
-  Announcement of a target of installing 175 GW of renewable energy capacity by the year, 2022;
-  Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
-  Waiver of Inter-State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to December, 2022.
-  Notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner.
-  Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022.
-  Implementation  of  Green  Energy  Corridor  project  to  facilitate  grid  integration  of  large  scale renewable energy capacity addition.
-  Launching of New Schemes, such as, PM-KUSUM, solar rooftop phase II, 12000 MW CPSU scheme Phase II.

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