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Himachal Electricity Regulator Finalizes Resource Adequacy Framework Regulations


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					</table><p>The Madhya Pradesh government has allotted 442.04 acres of land in the Mohasa-Babai region for companies to set up renewable energy manufacturing projects.</p>
<p>The latest land allotment will expand the size of the existing 441.96-acre industrial park, which was developed to promote electrical and renewable energy equipment manufacturing.</p>
<p>The state Cabinet also approved the facilities and allotment process for the extended area within the industrial park.</p>
<p>Renewable energy comprises 21% of Madhya Pradesh’s total installed power capacity. Currently producing 7 GW through renewable energy sources, the state plans to increase the share of renewable energy to 50% by 2030 and generate 20 GW.</p>
<p>Earlier this year, the Madhya Pradesh government said a 1,500 MW solar park was under construction in the Agar-Shajapur-Neemuch region.</p>
<p>According to Mercom’s Q3 2024 India Solar Market Update, India added a solar capacity of 6.4 GW during the first nine months of 2024, a 167% increase from the same period in 2023. The country added 3.5 GW of solar capacity during the third quarter of CY 2024, a 78% growth over the same period last year. Madhya Pradesh contributed 16% to the national solar capacity installed, tying with Maharashtra and coming second behind Gujarat, contributing 22%.</p>
<p>In October, GAIL <a href="https://www.mercomindia.com/gail-invites-bids-solar-project-in-madhya-pradesh" target="_blank" rel="noopener">invited</a> bids for the design, engineering, procurement and supply, construction, erection, testing, commissioning, and operation and maintenance of a 7.75 MW grid-connected floating solar project at Vijaipur in Madhya Pradesh.</p>
<p>The Madhya Pradesh Urja Vikas Nigam recently <a href="https://www.mercomindia.com/madhya-pradesh-epc-tender-rooftop-solar" target="_blank" rel="noopener">invited</a> bids to standardize rates and select contractors for 26 MW of grid-connected and off-grid rooftop solar systems under engineering, procurement, and construction mode.</p>
<p>In August this year, the Solar Energy Corporation of India <a href="https://www.mercomindia.com/seci-floats-land-acquisition-tender-for-200-mw-solar-project-in-madhya-pradesh" target="_blank" rel="noopener">invited</a> bids to select an agency to purchase or lease 800 acres of land for a 200 MW solar project in Madhya Pradesh.</p>


Madhya Pradesh Allots 442 Acres of Land for Renewable Energy Manufacturing


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					</table><p>The Union Cabinet has approved the Pradhan Mantri-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems on 10 million households, with a total outlay of ₹750.21 billion (~$9.05 billion) until the financial year (FY) 2025-26.</p>
<p>Prime Minister Narendra Modi had <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">announced</a> the new subsidy program for residential consumers on February 13, 2024.</p>
<p>Under the new program, a subsidy of ₹30,000 (~$361)/kW will be provided for residential rooftop solar systems up to 2 kW for applications submitted after February 13, 2024. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for projects exceeding 3 kW, depending on the average monthly power consumption of the household, the total subsidy will be capped at ₹78,000 (~$939).</p>
<p>Consumers must apply for subsidy through the <a href="https://pmsuryaghar.gov.in" target="_blank" rel="noopener">National Portal</a> and select a vendor to install the rooftop solar system. The portal will provide consumers with information on system sizes, benefits calculators, vendor ratings, etc., to help with the decision-making process.</p>
<p>Under the program, valid for two years – FY 2023-24 and FY 2024-25 &#8212; consumers will get access to collateral-free, low-interest loan options at as low as 7% to install rooftop solar systems of up to 3 kW capacity.</p>
<p>Households are expected to save on electricity costs as well as earn additional income through the sale of surplus power from the rooftop solar systems to the state DISCOMs.</p>
<p>The government will develop a model solar village in every district of the country to promote rooftop solar adoption in rural areas. It will also incentivize urban local bodies and Panchayati Raj institutions to promote rooftop solar in their respective areas.</p>
<p>According to Anurag Thakur, Minister of Information and Broadcasting, only domestically manufactured solar cells and modules will have to be used in these projects.</p>
<p>The program budget will allow for payment security for renewable energy service company-based installations and also fund innovative projects in the rooftop solar segment.</p>
<p>The PM-Surya Ghar program is expected to add up to 30 GW of residential rooftop solar capacity, generate 1,000 BUs of electricity, and reduce 720 million tons of CO2e emissions over a 25-year project lifetime.</p>
<p>The program is expected to create ~1.7 million direct jobs in manufacturing, logistics, supply chain, sales, installation, operation and maintenance, and other services.</p>
<p>The government, however, has yet to clarify the subsidy structure for residential welfare associations and group housing societies adopting rooftop solar.</p>
<p>Recently, the Maharashtra State Electricity Distribution Company <a href="https://www.mercomindia.com/maharashtra-3-million-residential-rooftop-solar-target" target="_blank" rel="noopener">announced</a> plans to install 3 million rooftop solar systems on houses in the state under the new program. The state has set a district/region-wise target and directed all field offices to focus on technical feasibility approvals and meter testing.</p>


Cabinet Approves New Rooftop Solar Subsidy Program with Outlay of ₹750.21 Billion


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					</table><p><a href="https://www.greenh.in/" target="_blank" rel="noopener">GreenH Electrolysis</a>, a joint venture between <a href="https://www.h2b2.es/" target="_blank" rel="noopener">H2B2 Electrolysis Technologies</a> of Spain and <a href="https://www.grinfra.com/" target="_blank" rel="noopener">GR Group</a> of India, is setting up a 1 GW Proton Exchange Membrane (PEM) electrolyzer manufacturing facility in India.</p>
<p>This facility will be located at the Reliance MET Industrial Park in Jhajjar District, Haryana, with its first phase currently underway, and operations are expected to commence in October this year.</p>
<p>The joint venture brings together the technical expertise of H2B2 Electrolysis Technologies, a global player in the hydrogen sector through electrolysis, and the project development and engineering, procurement, and construction (EPC) experience of GR Group, an infrastructure company in India.</p>
<p>The technology for the plant is provided by the Spanish parent company, H2B2 Electrolysis Technologies. The plant&#8217;s initial capacity will be 100 MW, and GreenH plans to scale it up to 500 MW in two years rapidly.</p>
<p>The long-term vision includes expanding the capacity further to reach 1 GW in Phase 2.</p>
<p>Ashwin Agarwal, Director of GR Promoter Group, said GreenH&#8217;s facility will help meet the rising demand for electrolyzers, especially in the commercial and industrial segments.</p>
<p>The green hydrogen market in India is poised for exponential growth, with hydrogen demand expected to increase fourfold by 2050, primarily driven by the steel industry and heavy-duty transportation.</p>
<p>As India currently spends over $160 billion annually on energy imports, a figure that could double in the next 15 years, the shift towards green hydrogen presents an opportunity to reduce dependence on fossil fuels and bolster energy security, the company said.</p>
<p>In January this year, the Union Cabinet <a href="https://www.mercomindia.com/cabinet-approves-%E2%82%B9197-billion-hydrogen-mission" target="_blank" rel="noopener">approved</a> the National Green Hydrogen Mission to facilitate demand creation, production, utilization, and export of green hydrogen with an initial outlay of ₹197.44 billion (~$2.3 billion).</p>
<p>The National Hydrogen Mission aims to accelerate green hydrogen production in India and align the nation&#8217;s energy transition efforts with global best practices in technology, policy, and regulation.</p>
<p>Recently, the Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/ministry-175-billion-program-green-hydrogen" target="_blank" rel="noopener">released</a> a framework document outlining incentive programs for the manufacturing of electrolyzers and the production of green hydrogen, with a financial outlay of ₹174.9 billion (~$2.1 billion).</p>


GreenH Electrolysis to Set Up 1 GW PEM Electrolyzer Plant in India


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					</table><p>The government has allowed <a href="https://www.ntpc.co.in/" target="_blank" rel="noopener">NTPC</a> to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE).</p>
<p>The extant guidelines prescribe a ceiling of 30% of a CPSE’s net worth for making such investments.</p>
<p>The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, also exempted NGEL’s investment in NTPC Renewable Energy and its other joint ventures and subsidiaries, subject to a ceiling of 15% of its net worth beyond the monetary ceiling of ₹50 billion (~$605 million) to ₹75 billion (~$1 billion).</p>
<p>NTPC has set a target of reaching a renewable energy operational capacity of 12 GW by 2025 and 60 GW capacity by 2032.</p>
<p>The exemption will help decrease India’s dependency on conventional sources of energy by diversifying the country’s energy generation sources and decreasing the coal import bills. Further, it will also help ensure a 24X7 power supply to every corner of the country.</p>
<p>The exemption will accelerate India’s efforts in achieving the goal of 500 GW of non-fossil energy capacity by the end of the current decade.</p>
<p>The investments by NTPC and its subsidiaries align with the government’s ‘Panchamrit’ program that was announced at the COP26 Summit as part of India’s contribution to climate action.</p>
<p>NTPC Green Energy has 15 renewable energy assets of 2,861 MW, which are operational or nearing commercial operation date.</p>
<p>NTPC incorporated its green energy arm in April 2022 to support its green targets and <a href="https://www.mercomindia.com/ntpc-to-transfer-15-renewable-assets-worth" target="_blank" rel="noopener">inked</a> a business transfer agreement with the latter to transfer its 15 solar and wind assets.</p>
<p>The projects have a combined capacity of 2.8 GW. Of the 15 renewable projects, 13 projects with 2.2 GW capacity are fully operational, and the remaining two projects totaling 600 MW have attained an operational capacity of 350 MW.</p>
<p>The net worth of the 15 renewable energy assets is ₹13.7 billion (~$171.8 million) as of March 31, 2022, which is 1% of the net worth of NTPC, i.e., ₹1.4 trillion (~$17 billion).</p>
<p>Last month, NGEL <a href="https://www.mercomindia.com/ntpc-proposals-green-term-loan-of-%e2%82%b990-billion" target="_blank" rel="noopener">invited</a> proposals from banks for a green term loan of up to ₹90 billion (~$1 billion) to repay debt obligations towards NTPC against the acquisition of 15 renewable assets.</p>


Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm


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					</table><p>The Union Cabinet has approved the <a href="https://mercomindia.com/new-green-hydrogen-policy-step-net-zero-emissions/" target="_blank" rel="noopener">National Green Hydrogen Mission</a> to facilitate demand creation, production, utilization, and export of green hydrogen with an initial outlay of ₹197.44 billion (~$2.3 billion).</p>
<p>The largest portion of the funding &#8212; ₹174.9 billion (~$2.1 billion) &#8212; is earmarked for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) program.</p>
<p>The rest of the outlay has been divided among other initiatives including ₹14.66 billion (~$177 million) for pilot projects, ₹4 billion (~$48.3 million) for research and development, and ₹3.88 billion (~$46.8million) towards other mission components.</p>
<p>Under the SIGHT program, separate financial incentives for the domestic manufacturing of electrolyzers and the production of green hydrogen would be provided, the government said in a statement.</p>
<p>The mission seeks to promote the development of green hydrogen production capacity of 5 million tons per year with an associated renewable energy capacity addition of about 125 GW in the country by 2030. To achieve this, 60 &#8211; 100 GW of electrolyzer capacity will be established.</p>
<p>The mission envisages an investment of over ₹8 trillion (~$96.5 billion) and the creation of over 600,000 jobs by 2030.</p>
<p>It is expected to result in the cumulative reduction in fossil fuel imports of over ₹1 trillion (~$12.07 billion) and the abatement of nearly 50 million tons of annual greenhouse gas emissions by 2030.</p>
<p><strong>Implementation of the mission</strong></p>
<p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) will be responsible for the overall implementation of the mission and will formulate the guidelines of the respective components.</p>
<p>“India aims to become the global hub of production and exportation of green hydrogen. Within the power sector this will make the country self-reliant and go in tune with the vision of <em>Aatmanirbhar Bharat </em>and become an inspiration for the clean energy transition globally,” Union Minister Anurag Thakur said while briefing about the Cabinet’s decisions.</p>
<p>The minister added that the pilot projects would be introduced to identify industries such as refining, steel, shipping, and long-range mobility where green hydrogen can be put into use.</p>
<p>Regions capable of supporting large-scale production and/or utilization of hydrogen would be identified and developed as green hydrogen hubs.</p>
<p>The mission has proposed that the green hydrogen manufacturers and consumers would be brought under one roof to save on transportation costs and benefit from economies of scale.</p>
<p>Further, to encourage research and development, a public-private partnership framework would be put in place with support from a dedicated fund with contributors from the government, private sector and venture capital funds.</p>
<p>The minister said the mission would create export opportunities for green hydrogen and its derivatives, decarbonize industries, reduce dependence on imported fossil fuels and feedstock, and develop indigenous manufacturing capabilities.</p>
<p>Rajat Seksaria, CEO, of green energy provider <a href="https://www.acme-ghc.com/" target="_blank" rel="noopener">ACME Group</a>, told Mercom “The decision offers a great opportunity for India to become a global export hub of green hydrogen and ammonia. The incentive program makes the green molecule from India competitive. This is required for the initial few projects and to create green hydrogen hubs, which will allow supply chains to be established and scale production up.”</p>
<p>In July 2022, NITI Aayog <a href="https://mercomindia.com/niti-aayog-ten-steps-make-india-hydrogen-hub/">prescribed</a> ten steps to make India a global green hydrogen hub.</p>


Cabinet Approves ₹197 Billion National Green Hydrogen Mission

<p>The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) announced that the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the asset monetization of the Power Grid Corporation of India Limited (<a href="https://www.powergridindia.com/" target="_blank" rel="noopener noreferrer">PGCIL</a>) through the Infrastructure Investment Trust (InvIT) model.</p>
<p>The financial instrument I’nvIT’ was launched as a part of a brownfield asset monetization strategy to enhance infrastructure investments, which would provide an opening for the general public and institutional investors to invest in the infrastructure sector.</p>
<p>The InvIT model has been designed in a way that’s similar to mutual funds. In this, small sums of investor’s money are pooled together to invest in a project. This provides a steady cash flow over a period of time, a part of which goes back to the investors in the form of dividends.</p>
<p>According to the press release, PGCIL, a state-owned power transmission company, will be the first public sector undertaking (PSU) in the power sector to undertake asset recycling through the monetization of its assets by the InvIT model. The company plans to utilize the proceeds from asset monetization for its new and under-construction projects as well as capital expenditure.</p>
<p>The approval will facilitate PGCIL to monetize its assets that are held in the form of special purpose vehicles (SPVs) like high voltage transmission lines and substations. The company is expected to monetize assets with a gross block worth over ₹70 billion (~$ 950.86 million) in the first lot. It also has a capital expenditure plan of ₹205 billion (~$2.78 billion) for the next two years.</p>
<p>“Asset recycling is a key strategy of the government of India to release the capital invested in operational assets, and the proposed InvIT of the PGCIL would attract both domestic as well as global investors including sovereign wealth funds. Sale of assets to InvITs is a way of accessing long-term, relatively cheap finance required for infrastructure projects in the transmission sector,” said the government’s press statement.</p>
<p>Mercom earlier <a href="https://mercomindia.com/powergrid-separate-transmission-business/" target="_blank" rel="noopener noreferrer">reported</a> that the PowerGrid Corporation of India Limited had announced its plans to separate its power transmission business to form a 100% subsidiary that would carry out transmission-related functions, as per the Ministry of Power’s directions. The newly formed subsidiary would have separate accounting and board structures.</p>
<p>In July 2020, Tata Power <a href="https://mercomindia.com/tata-power-invit-renewable-business/" target="_blank" rel="noopener noreferrer">announced</a> that its board of directors had given its in-principle approval for setting up an InvIT for the company’s renewable business. This was part of the company’s long-term strategic plan to reduce debt, strengthen its balance sheets, and improve overall return metrics.</p>


Cabinet Approves Asset Monetization of Power Grid Corporation Through InvIT Model

<p>The Union Cabinet has approved phase three of the Off-grid and Decentralised Solar PV Application Program.</p>
<p>The program, approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, aims at providing left-wing extremism (LWE) affected districts and northeastern states with solar power plants, solar street lights and solar study lamps. Areas devoid of grid connectivity with no facility of street lighting solution will also get precedence over other areas. A total of 3,00,000 solar street lights will be installed across the country as part of the program. The program also aims to achieve 118 MWp off-grid solar PV capacity by 2020.</p>
<p>Under the program, central assistance worth ₹6.37 billion (~$0.095 billion) will be provided to these states, districts, and union territories to be utilized for the implementation of the program. These initiatives will incur a total cost of ₹18.95 billion (~$0.28 billion).</p>
<p>According to the plan, areas with unreliable power supply or lack of grid connectivity will be promoted for stand-alone solar power projects. Size of these projects will be up to 25 kWp. The focus of these installations will be public buildings, such as schools, hostels, panchayats, police stations etc.</p>
<p>The program will also distribute 25,00,000 solar study lamps in northeastern states and LWE affected districts.</p>
<p>Northeastern and other hill states, along with islands will receive 90 percent of the benchmark cost for solar street lights and solar power projects. Other states can avail financial support up to 30 percent of the benchmark cost of the projects. In case of study lamps, 85 percent of the cost will be provided to beneficiary students in backward and remote areas.</p>
<p>It is estimated that 4 million rural households will benefit from the third phase of the program and it is likely to generate 867,000 man-days of employment opportunities for skilled and unskilled workers.</p>
<p>To compensate for lack of power and erratic supply of electricity in the far-flung regions of the country, the government of India, through the Ministry of New and Renewable Energy (MNRE), has also been running a program under which solar study lamps have been distributed in various states across the country.</p>
<p>“One million solar study lamps have been distributed in three Indian states under the One Million Solar Study Lamps Program which was approved in January 2014 by MNRE for empowering underserved communities. The states which benefited from this program are Madhya Pradesh, Maharashtra, and Rajasthan,” the minister of Power, R.K. Singh, <a href="https://mercomindia.com/1-million-solar-lamps-distributed/" target="_blank" rel="noopener">announced earlier this year</a>.</p>
<p>Earlier, Mercom <a href="https://mercomindia.com/250-1-million-led-bulbs-distributed-ujala-program/" target="_blank" rel="noopener">reported</a> that about 250.1 million smart and energy efficient LED bulbs were distributed under the Unnat Jyoti by Affordable LEDs for All (UJALA) program by the government, as of July 12, 2017.</p>


Cabinet Approves Program to Provide 300,000 Solar Street Lights Across India

<p>The central government’s cabinet, headed by prime minister Narendra Modi,  approved the National Policy on Biofuels &#8211; 2018. Biofuels in India are of strategic importance as they augur well with the government’s ongoing initiatives, such as Make in India, Swachh Bharat Abhiyan, and Skill Development.</p>
<p>Biofuels offer great opportunity to integrate with the ambitious goal of doubling farmers’ income, import reduction, employment generation, waste-to-wealth creation. The biofuels program in India has  largely been impacted due to the sustained non-availability of domestic feedstock for biofuel production, which needs to be addressed. The National Policy on Biofuels will help change the trend.</p>
<p><strong>KEY HIGHLIGHTS</strong></p>
<ul>
<li>Biofuels have been categorized as “Basic Biofuels” &#8211; First Generation (1G) bioethanol and biodiesel,&#8221;Advanced Biofuels&#8221; &#8211; Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, and Third Generation (3G) biofuels, bio-CNG, to enable extension of appropriate financial and fiscal incentives under each category.</li>
<li>Sugarcane juice, sugar containing materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat, broken rice, rotten potatoes, unfit for human consumption for ethanol production can be utilized as raw materials.</li>
<li>Surplus food grains can be utilized to produce ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.</li>
<li>With a thrust on advanced biofuels, the policy indicates a viability gap funding program for 2G ethanol bio refineries of ₹50 billion in six years in addition to additional tax incentives and higher purchase price as compared to 1G biofuels.</li>
<li>Setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops will be encouraged.</li>
</ul>
<p>The government estimates one crore liter of E-10 saves ₹280 million of forex at current rates. The ethanol supply year 2017-18 is likely to see a supply of around 150 crore liters of ethanol, which will result in savings of over ₹40 billion of forex. One crore liter of E-10 saves around 20,000 ton of CO<sub>2</sub> emissions. For the ethanol supply year 2017-18, CO<sub>2</sub> emissions will be reduced to the tune of 30 lakh ton. By reducing crop burning and conversion of agricultural residues and wastes to biofuels, greenhouse gas emissions will be further reduced.</p>
<p>The addition of 2G bio refineries across the country will spur infrastructural investment in rural areas. One 100klpd 2G bio refinery can contribute 1,200 jobs in plant operations, village level entrepreneurship, and supply chain management.</p>
<p>To help tackle air pollution issues, the Ministry of Power has issued a <a href="https://mercomindia.com/cea-biomass-pellets-power-generation-thermal-plants/" target="_blank" rel="noopener">policy</a> that calls for using 5-10 percent of biomass pellets alongside coal for power generation in thermal power plants across the country in February.</p>
<p>A program to support promotion of biomass-based cogeneration in sugar mills and other industries was also <a href="https://mnre.gov.in/sites/default/files/schemes/scheme-Biomass-11052018.pdf" target="_blank" rel="noopener">announced</a> this month by the Ministry of New and Renewable Energy’s biomass power division.</p>
<p>Image credit: By Steve Jurvetson (Flickr), via Wikimedia Commons</p>


Cabinet Approves National Policy on Biofuels

<p>The state cabinet of the Government of Madhya Pradesh, today, approved the payment guarantee to be provided to solar project developers in the Rewa Ultra Mega Solar (RUMS) park.</p>
<p>An official overlooking the development of RUMS confirmed the approval by state cabinet and stated, “it’s good news, now, the third tier of the payment security mechanism for RUMS is in place.”</p>
<p>Another official with RUMS stated, “the state government will guarantee that if there are payment delays by the off-takers, it (state) will pay the difference or the amount pending to the developers.”</p>
<p>The <a href="https://mercomindia.com/new-record-low-solar-tariff-rs-3-30kwh-logged-rewa-solar-park-auction-madhya-pradesh-india/" target="_blank" rel="noopener noreferrer">750 MW</a> Rewa Solar Park auction in Madhya Pradesh, had heralded the decline in solar tariffs in India with bids as low as ₹3.30 (~$0.494)/kWh.</p>
<p><a href="https://mercomindia.com/four-tier-rewa-payment-security-model-responsible-low-bids/" target="_blank" rel="noopener noreferrer"><strong>More details to follow…</strong></a></p>
<p>Image credit: Mahindra Susten</p>


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