Lok Sabha Question No. 393 (UNSTARRED), answered on 2024-11-27
Subject: Solar Energy Plants through Foreign Investment
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Smt. Dhanorkar Pratibha Suresh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 393

ANSWERED ON 27/11/2024

## SOLAR ENERGY PLANTS THROUGH FOREIGN INVESTMENT

## 393. SMT. DHANORKAR PRATIBHA SURESH

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

- (a) whether the solar energy plants are being established through foreign investment in the country;
- (b) if so, the details of investment made by foreign companies in the field of solar energy in the country;
- (c)  whether  the  Government  is  taking  any  steps  in  lines  of  Jawaharlal  Nehru  National  Solar Mission (JNNSM) for the promotion of the production of solar energy in view of potential of solar energy available in the country; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a) & (b) Foreign Direct Investment up to 100 per cent is permissible through automatic route for promotion  of  renewable  energy  including  solar  energy  in  the  country.  As  per  inputs  from Department  for  Promotion  of  Industry  and  Internal  Trade,  the  investment  made  by  foreign companies in the field of solar energy during the period April 2014 till June 2024 is around 9663.23 USD million.
- (c) & (d) The Government have taken several steps to promote solar energy. The details of major steps taken are given at Annexure-I .

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## ANNEXURE-I REFFERED TO IN REPLY TO PART (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO. 393 FOR 27.11.2024

## MAJOR STEPS TAKEN TO PROMOTE SOLAR ENERGY IN THE COUNTRY

- Notification  of  trajectory  for  RE  power  bids  of  50  GW/annum  to  be  issued  by Renewable Energy Implementation Agencies [REIAs: Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited, SJVN Limited] from FY 202324 to FY 2027-28.
- Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
- Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
- To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory has been notified till 202930. The RCO which is applicable to all designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also includes specified quantum  of consumption  from  Decentralized  Renewable  Energy sources.
- Project Development Cell for attracting and facilitating investments has been set up.
- Standard  Bidding  Guidelines  for  tariff  based  competitive  bidding  process  for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) Projects have been issued.
- Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency  Solar  PV  Modules,  National  Green  Hydrogen  Mission,  have  been launched.
- Scheme  for  setting  up  of  Ultra  Mega  Renewable  Energy  Parks  is  being implemented to provide land and transmission to RE developers for installation of RE projects at large scale.
- Laying of new transmission lines and creating new sub-station capacity has been funded under the Green Energy Corridor Scheme for evacuation of renewable power.
- Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five hundred Kilowatt or up to the electrical sanctioned load, whichever is lower.
- Uniform Renewable Energy Tariff (URET) has been introduced through which a uniform tariff will be provided to the consumer by averaging tariffs of individual RE projects  of  similar  type  awarded  via  tariff  based  competitive  bidding  process.

Implementation of URET for 'Solar Power Central Pool' and 'Solar-Wind Hybrid Central Pool' from 15 th  February 2024 has been notified.

- Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Gridconnected Solar Inverters have been launched.
- To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2030.
- 'The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
- Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, has been notified on 06 th  June 2022 with objective of ensuring access to affordable, reliable, and sustainable green energy for all. Green Energy Open Access is allowed to any consumer with contract demand of 100 kW or above through  single  or  multiple  single  connection  aggregating  Hundred  kW  or  more located in same electricity division of a distribution licensee.
- Green  Term  Ahead  Market  (GTAM)  has  been  launched  to  facilitate  sale  of Renewable Energy Power through exchanges.
- 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 RE generators.