Lok Sabha Question No. 3118 (UNSTARRED), answered on 2015-12-17
Subject: Funds Released for Renewable Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: JANARDAN SINGH SIGRIWAL

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED  QUESTION NO. 3118

TO BE ANSWERED ON 17.12.2015

## FUNDS RELEASED FOR RENEWABLE ENERGY

## 3118.  SHRI JANARDAN SINGH SIGRIWAL:

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

(a) whether  meager/  very  less  funds  have  been  spent  on  research  in  the  field  of  energy generation from the renewable sources like solar energy and wind energy in the country;

(b) if  so,  the  details  thereof  and  the  reaction  of  the  Government  thereto  along  with  the expenditure incurred on research and development in this regard during the last three years and the current year; and

(c) the efforts made/ being made by the Government to bring down the cost of solar energy generation to the level of or less than the cost of energy generation from other sources?

## ANSWER

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

(a): No, Madam.  The Ministry of New and Renewable Energy (MNRE) has been supporting Research, Development and Demonstration (RD&D) in all areas of new and renewable energy including solar and wind energy.  Solar research received boost in the 11 th Plan Period in view of the launch of the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010. As a result, funding to the tune of Rs. 391.98 crore was done to various R&D/ academic institutes, industries, etc.  for  research  in  solar,  out  of  total  funds  of  Rs.524.63  crores  sanctioned  for  all  new  and renewable energy projects during the 11 th Plan Period. In wind, the technology development and acquisition has been mainly done by industry. However, the focus of the Ministry on research in wind  has  been  on  development  of  small  scale  wind  machines  and  hybrid  systems.  An expenditure of Rs. 5.50 crore was done on research in wind in the 11 th Plan Period. In addition, solar and wind resource assessment was carried out by the MNRE's institution, namely, National Institute of Wind Energy (NIWE), Chennai.

(b): RD&D undertaken  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 that are at par with

international level, with cost reduction. RD&D in solar thermal power provided feedback on operational aspects of the technology for further development. In wind, RD&D in hybridization of solar and wind was pursued for ensuring improved energy supply from renewable energy. Solar  and  wind  resources  assessment  carried  out  at  NIWE,  Chennai  has  helped  project developers and industries in identification of sites for solar and wind energy installations in the country.   During the last three years and the current year, a total expenditure of Rs.387.62 crore and Rs.58.95 crore has been incurred on RD&D in solar and wind, respectively.

(c): Presently,  the  Government  is  supporting  solar  energy  generation  in  the  country  by providing a range of fiscal and financial incentives for promotion of solar energy generation under various schemes.  These include capital and/ or interest subsidy, 100 per cent tax holiday on the earnings for 10  years,  generation  based incentive, accelerated depreciation, financing solar  rooftop  systems  as  part  of  home  loan,  and  concessional  excise  and  custom  duties, preferential  tariff  for  power  generation  from  renewables  and  National  Clean  Energy  Fund (NCEF) support for on-lending to viable renewable energy projects by Indian Renewable Energy Development Agency (IREDA).  In addition, foreign direct investment up to 100% under the automatic route is permitted.

The tariff for solar power projects has come down to level of Rs. 4.63 per unit under the recent tender of NTPC for the State of Andhra Pradesh, which is quite competitive with cost of energy generation from other sources.

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