U.S.-India State and Urban Initiative's
Focus on States
Publications & Events
Breakthrough Index: Solar Policy by Richard M. Rossow and Sarah Watson
In September 2016, Madhya Pradesh became the latest state to encourage consumers to install solar rooftop panels. But despite the vogue for such sources of renewable energy, state policies vary widely. At the current pace, India will only have 12 gigawatts (GW) of rooftop solar by 2022. To foster growth, states need to set policies that encourage solar production (and meet implementation challenges). In our latest Breakthrough Index, we ranked state solar policies in three areas: the value of producer incentives, the consumer friendliness of their net-metering policy, and the ambition of their renewable purchase obligation (RPO) targets.
Payment Security Mechanism for Solar Power in India by Sharmila Bellur and Sarah Ladislaw
India has set a target of 175 GW of power from renewable sources by 2022, of which 100 GW is set to come from solar energy. India’s renewable energy plans are predominantly financed by the central government or by debt financing through banks. The role of institutional investors in developing and financing renewable energy projects in India is crucial. Therefore, having a good investment environment is important to maintain investor involvement.
India’s Hydrocarbon Exploration & Licensing Policy (HELP): Will it Help India’s Upstream Oil & Gas? by Sharmila Bellur and Sarah Ladislaw
At its very core, HELP marks the biggest transition from an era of government control to government support for upstream E&P in India. OALP removes restrictions on exploration by giving companies both the data and the discretion to explore areas of their choice. India’s upstream oil and gas E&P policy has been subject to criticism, with protectionism and government red tape being blamed for lackluster development of oil and gas upstream. A policy that will encourage upstream investment and improve productivity could help incentivize more private and foreign entrants into the oil and gas sector.
Data of the Month
Pradhan Mantri Ujjwala Yojana (PMUY)
The Pradhan Mantri Ujjwala Yojana was launched by Prime Minister Narendra Modi in May 2016. Run under the Ministry of Petroleum and Natural Gas, it aims to provide clean cooking fuel for families living below the poverty line (BPL). With a budget of USD 1.5 million Ujjwala aims to provide 50 million homes with new LPG (Liquefied Petroleum Gas) connections, and USD 23.96 as financial assistance, to reduce their dependency on firewood. Qualifying households are identified as BPL based on the Socio Economic Caste Census Data. As of December 2016, PMUY was being implemented across 35 states and union territories. The top 5 states with maximum connections are Uttar Pradesh, West Bengal, Bihar, Madhya Pradesh, and Rajasthan.
Latest Policies & Initiatives
Haryana: Solar Power Mandatory in Private Schools
The Haryana government will require all private schools in the state to install solar power systems. Girls’ schools will be able to apply for a grant to cover the cost of the systems at a rate of $300 per kilowatt (KW).
Andhra Pradesh: 'Solar Farming' program to be Launched
The Andhra Pradesh Energy Department is set to launch a first-of-its-kind 'Solar Farming' program. Under this program, existing pump sets will be replaced with energy-efficient solar pumps that generate their own power. Farmers can sell surplus energy to the grid.
Source: Financial Express
Jammu and Kashmir: New Target of 450 MW Solar Power Capacity by 2022
Jammu and Kashmir Department of Science and Technology announced a target of 450 megawatts (MW) of rooftop solar power capacity under the net-metering system by 2022. The policy announced by the state government allows for eligible consumers to set up rooftop solar power systems in the range of 1 KW to 1,000 KW.
State Energy Profile
Credit: STRDEL/AFP/Getty Images\
by Sharmila Bellur and Sarah Ladislaw
"Power sector transformation in Bihar needs to start with rural areas with no access to electricity. Being
an agricultural state, there is agro residue-based bio-energy potential that should be explored."
"Saddled with debt, UP's distribution companies are now on the mend thanks to UDAY, a central bailout program. These efforts are at odds with the problems intrinsic to the state: power theft and politicization of the power."
Latest Subnational Energy News
Sikkim commissioned the 1200 MW hydroelectric Teesta Stage III Power Project. The $2 billion project is designed to provide 12 percent of the state’s power free for the first 15 years and 15 percent thereafter. Source: Voice of Sikkim
The central Ministry of Environment has approved a plan to build an offshore data collection platform in the Gulf of Kutch, near the Gujarat coast, to conduct wind energy mapping and identify high-potential locations for future wind energy installations. Source: Livemint
Spanish wind turbines manufacturer Gamesa has opened a new wind blade manufacturing facility in Nellore, Andhra Pradesh. The facility will manufacture blades for Gamesa’s G114-2.0 MW class S turbine, which are custom-built for the Indian market. Source: Energy Business Times
The Asian Development Bank (ADB) will lend $500 million to India to improve large-scale power transmission from the northern to the southern regions, while helping integrate renewable energy in the country’s power system. The ADB loan will make up around 19% of the $2.58 billion total project cost while Power Grid Corporation Ltd will provide $2.08 billion. The project, which is expected to be completed by December 2020, will help build 800 kilovolt (kV) and 320 kV high voltage direct current (HVDC) converter stations and 765 kV power transmission systems in India. Source: Hindustan Times
The government has bailed out state-owned oil producers Oil and Natural Gas Corp (ONGC) and Oil India from a potential liability of about $3.3 billion in royalty dues to states like Gujarat and Assam. The central government will pay two state-owned firms' outstanding liabilities of $2.2 billion directly to the state governments, who will not insist on levy of $1.08 billion interest on payments that were due from April 2008. Source: Business Standard
Tripura will supply eastern Bangladesh with a further 60 MW of electricity, beyond the 100 MW it has been providing since March 2016. Source: Nagaland Post
Tata Power Delhi Distribution Ltd (Tata Power-DDL) has joined with telecom equipment maker Nokia to modernize electrical grids. Nokia has provided Tata Power-DDL with an Internet protocol/multiprotocol label switching network to support the management of its electrical grids in North and North-West Delhi. Source: First Post
National Thermal Power Company (NTPC) Limited began power generation from India’s largest floating solar power plant at Kayamkulam. The 100 kilowatt peak floating solar generation plant was indigenously developed at the Rajiv Gandhi Combined Cycle Power Plant in Kerala’s Kayamkulam district, the company said. Source: Economic Times
The amount due to the North Eastern Electric Power Corporation Limited (NEEPCO) and other Central Generating Stations (CGS) from the state government as on March 2 this year is Rs 527.07 crore. Meghalaya Power minister Sniawbhalang Dhar said measures were taken to clear the outstanding dues and in December last year the Meghalaya Electricity Corporation Limited (MeECL) had availed the government guaranteed loan of Rs 325 crore from the Power Finance Commission (PFC). Source: DNA India
The Jharkhand power distribution company, Jharkhand Bijli Vitran Nigam Ltd, has cleared the approximately ₹1,300 crore it owes to Damodar Valley Corporation (DVC) and ₹32 crore to Coal India, in compliance with the roadmap for executing the Ujjwal Discom Assurance Yojna (UDAY) reforms. Source: The Hindu Business Line
A solar module manufacturing plant fully owned and operated by local tribal communities is being set up in Dungarpur, Rajasthan with the help of IIT Bombay. The Institute has helped implement this first-of- its-kind solar photovoltaic (PV) module manufacturing plant, which will be completely owned and operated by tribal women in Dungarpur, Rajasthan, according to a release. Source: Economic Times