Global investors back IREDA’s Re financing
Solar Energy Corporation of India Limited (SECI) and Indian Renewable Energy Development Agency (IREDA) have receiving funding support to implement Re projects across the country including power generation plants and manufacturers of hardware required to capture the natural energy.
SECI, a public sector undertaking, plans to call tenders for development of RE projects on pan-India basis, floating 15,000-MW capacity projects annually, supported by Rs.1,000 crore allocation from the Budget 2021-22.
The capital infusion will also enable SECI to set up innovative projects with an investment of around Rs.17,000 crore and attract global investment of more than Rs.60,000 crore year, reducing remission of 28.5 million tons of CO2 per year, said the Ministry of New and Renewable Energy on 9 Feb 2021.
India had cumulative installed capacity of 91,000 MW and further 50,000 MW of the projects are under implementation, 54% of which is SECI’s share as of 31 Dec 2020.
SECI procures RE power at a central level, thereby reducing the off-taker risk of RE developers and sells it to DISCOMs, said the Ministry.
Likewise, the International lenders are also happy to channelize their funds to India’s large RE market through IREDA which would build a loan facility of Rs.40,500 crore for financing of around 4,500 MW of RE projects worth Rs.18,000-Rs.19,000 crore. It will reduce emissions of 8.55 million tons of CO2.
IREDA has received Rs.1,500 crore from the Budget 2021-22 and would be able to extend additional loan facility of Rs. 12,000 crore. This would be in addition to its existing book size of Rs. 27,000 crore, said the Ministry.
These projects would be part of the proposed National Hydrogen Energy Mission would aim to put forward specific strategy for the short term (four years), and broad strokes principles for long term (10 years and beyond).
The aim is to develop India into a global hub for manufacturing of hydrogen and fuel cells technologies across the value chain and facilitate demand creation in identified segments. Possible areas include suitable mandates for use of green hydrogen in industry such as fertilizer, steel, petrochemicals among others.
Major activities envisaged under the Mission include creating volumes and infrastructure; demonstrations in niche applications (including for transport, industry); goal-oriented Research & Development; facilitative policy support; and putting in place a robust framework for standards and regulations for hydrogen technologies.
The draft Mission document has already gone through consultation process and is expected to be finalized in February 2021. Thereafter, it will go through inter-ministerial consultation and Cabinet approval process.
For manufacturing sector to grow in double digits on a sustained basis, manufacturing companies need to become an integral part of global supply chains, by possessing core competence and cutting-edge technology, it added.
Under a production linked incentive (PLI) Scheme 10,000 MW capacity of integrated solar PV manufacturing plants (from manufacturing of wafer-ingot to high efficiency modules) will be set up by Q4 of 2022-23 with the direct investment for around Rs.14,000 crore.
Further, the PLI scheme, announced in the Budget 2021-22, is to create manufacturing global champions that have been announced for 13 sectors including manufacturing of ‘High Efficiency Solar PV Modules’.
The Government has committed nearly Rs.1.97 lakh crores over five years starting FY 2021-22, including Rs.4500 crore for ‘High Efficiency Solar PV Modules’, which will be implemented by the Ministry. It will help bring scale and size in Solar PV manufacturing, create and nurture global champions and provide jobs to youth. #renewables #solar #panels #manufacturing #investment #energy #OPEC #banking /fiinews.com
