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India's Green Energy Push: Why No Projects Face Cancellation Amid Growth

The government has firmly denied any plans to cancel existing green energy projects. In fact, a massive 67 gigawatts of renewable power capacity has been awarded since last year. There's a clear market shift happening, with a growing preference for solar projects that include storage for reliable power. The Centre is actively encouraging this transition while pushing states to meet their renewable energy obligations.

Key Points: Pralhad Joshi Says Centre Has No Plan to Scrap Renewable Projects

  • Minister confirms no list exists for cancelling awarded renewable energy projects
  • Over 67,500 MW awarded via agencies like SECI and NTPC since April 2023
  • Shift in preference towards solar-plus-storage for peak hour supply
  • Government urges states to comply with Renewable Consumption Obligation rules
2 min read

Centre has no plan to scrap any green energy project: Pralhad Joshi

Union Minister Pralhad Joshi clarifies no renewable energy projects are cancelled, details 67 GW awarded since 2023 and a strategic shift towards solar-plus-storage.

"Thus, capacity addition of renewable energy is progressing through multiple pathways and not necessarily only through REIA-led bids. - Pralhad Joshi"

New Delhi, Dec 10

The Centre has not cancelled the award of any renewable energy project nor has it prepared any list of projects for cancellation in the future, New and Renewable Energy Minister Pralhad Joshi told the Parliament on Wednesday.

In a written reply to a question, the minister said that Renewable Energy Implementing Agencies (REIA), including the Solar Energy Corporation of India (SECI), the NTPC, the NHPC, and the SJVN, have issued letters of award (LoAs) of 67,554 megawatt in respect of renewable power procurement tenders issued since April 2023.

"States are also issuing renewable power procurement tenders, and renewable power capacity is also being added in commercial and industrial sectors through green energy open access or captive route. Thus, capacity addition of renewable energy is progressing through multiple pathways and not necessarily only through REIA-led bids," he said.

With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies and end procurers for such solutions. This shift has been accompanied by reduced demand for plain solar power.

"Solar-plus-storage configurations are also being preferred over wind-solar hybrid projects, particularly due to their ability to supply power during peak demand hours. Accordingly, the government has sensitised the REIAs to move from plain solar tenders to tenders of solar with energy storage, tenders with configuration to supply renewable power during peak hours and firm and dispatchable renewable energy," the minister pointed out.

India has an installed non-fossil fuel-based power generation capacity of 259 GW currently, with 31.2 GW added in the current financial year up to October. In order to facilitate the further execution of power purchase agreements (PPAs), the government is urging states to comply with the Renewable Consumption Obligation (RCO) under the Energy Conservation Act.

The Ministry of New & Renewable Energy (MNRE) had earlier this month also clarified that it has not issued any advisory to financial institutions for stopping lending to either renewable energy power projects or to renewable energy equipment manufacturing facilities, as has been reported in some sections of the media.

- IANS

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Reader Comments

P
Priya S
Good to hear there's no plan to scrap projects. But the real issue is execution on the ground. Many projects face delays due to land acquisition and state-level clearances. Hope the focus on storage solutions doesn't make projects too expensive for DISCOMs already in debt.
R
Rohit P
67,554 MW awarded since April 2023 is a massive number! If even half of that gets built, it will be a game-changer for our energy security. The push for peak-hour supply is crucial. We can't have solar power only when the sun is shining.
S
Sarah B
As someone working in the sustainability sector, I appreciate the clarification about no advisory to stop lending. That rumor was causing unnecessary panic. The multi-pathway approach (SECI, states, open access) is the right way to scale up.
V
Vikram M
While the intent is good, I have a respectful criticism. The article mentions urging states to comply with RCO. But what is the enforcement mechanism? Many states lag behind. We need stronger compliance, not just sensitization, to meet our 500 GW target by 2030.
K
Kavya N
The shift from plain solar to storage-based systems makes sense technically, but cost is a factor. Hope the government provides adequate VGF (Viability Gap Funding) or incentives to keep tariffs reasonable for the common consumer. Jai Hind!

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