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					</table>The <a href="http://assam.gov.in/" target="_blank" rel="noopener">Assam government</a> has proposed adding 11,700 MW of renewable energy capacity by the end of the financial year (FY) 2030.
In its Assam Integrated Clean Energy (ICE) Policy 2025, which will be applicable for the next five years, the state has said clean energy projects and renewable energy manufacturing plants commissioned during the policy period will be eligible for incentives.
Projects approved under previous policies will be allowed to migrate to the ICE policy.
Targets
The policy targets 11,700 MW of renewable energy, 2,000 MWh of battery manufacturing, and 2,000 EV charging infrastructure by FY 2030.
It also targets 2,000 KTPA of green hydrogen generation by 2030.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78161 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target.png" alt="" width="761" height="560" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target.png 761w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target-300x221.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target-650x478.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target-624x459.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/target-600x442.png 600w" sizes="(max-width: 761px) 100vw, 761px" /></a>
Land allocation
Land will be allotted to developers on 30-year leases. Pumped storage projects (PSP) and mini and small hydropower projects will be leased land for up to 45 years. Developers will receive 100% compensation for land reclassification and stamp duty costs.
Transmission Connectivity
Developers can receive transmission connectivity in two ways:
<ul>
<li>Developers can lay a connecting line to the state transmission utility (STU) grid station at their cost before handing it over. Alternatively, the STU may build the connecting line at the developer&#8217;s expense.</li>
<li>Developers will bear the cost of the existing or new external power evacuation infrastructure, transferable to the STU. They must pay a capital cost of ₹2.5 million (~$ 29,221.80)/MW or the actual cost, whichever is higher. Developers must also pay operation and maintenance charges.</li>
</ul>
Fees
The project fees will be as follows:
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78162 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee.png" alt="" width="1326" height="583" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee.png 1326w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee-300x132.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee-768x338.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee-650x286.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee-624x274.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/fee-600x264.png 600w" sizes="(max-width: 1326px) 100vw, 1326px" /></a>
Project Timelines
PSP project deadlines can be extended by 12 months, and other projects by up to 6 months.
Further deadline extensions will attract a penalty of 0.25% of the project cost per quarter for up to six months. Projects delayed further will not receive incentives.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78163 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline.png" alt="" width="1005" height="428" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline.png 1005w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline-300x128.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline-768x327.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline-650x277.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline-624x266.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/timeline-600x256.png 600w" sizes="(max-width: 1005px) 100vw, 1005px" /></a>
Exemptions
<ul>
<li>A 100% exemption from intrastate transmission charges for 20 years of the entire project life or 20 years, whichever is earlier</li>
<li>Waiver of distribution/wheeling charges if power injection and withdrawal occur at the same voltage levels</li>
</ul>
If the voltage levels at injection and withdrawal points differ, then the following applies:
Distribution and wheeling charges for low-tension consumers will be paid on a per-unit basis, and these charges for high-tension consumers will be paid block-wise.
Project Guidelines Implementation
Rooftop Solar
Rooftop power projects must be between 1 kW and 1,000 kW for all categories except for the tea, coffee, and rubber segments.
Rooftop solar projects under the gross metering program can be installed with a maximum capacity of 1 MW.
Energy banking for tea/coffee/rubber segments will be permitted yearly.
Decentralized Solar Projects
The state will promote decentralized solar projects with a minimum capacity of 0.5 MW and a maximum capacity of 5 MW. The projects must be located near the 33 kV grid substations.
Captive Solar Projects
The nodal agency will purchase surplus energy at 75% of the average power purchase cost rate for captive projects within the state. The capacity of the captive solar projects will be limited to the consumer&#8217;s contract demand.
Green Hydrogen
The following categories of green hydrogen project developers will be eligible for incentives:
<ul>
<li>Developers who have co-located renewable energy and green hydrogen generation projects</li>
<li>Developers with green hydrogen generation projects and remotely located renewable energy power projects</li>
<li>Developers with green hydrogen park/hub/cluster/valley</li>
</ul>
Incentives for Rooftop Solar Projects
The state government will provide a subsidy for rooftop solar projects under the PM Surya Ghar program of up to ₹15,000 (~$175.33) for 1 kW projects, ₹30,000 (~$350.66) for 2 kW projects, and ₹45,000 (~$525.99) for 3 kW projects.
Incentives for Solar Manufacturing
<ul>
<li>Reimbursement of 100% net SGST on sale of products for seven years</li>
<li>Electricity tariff subsidy of ₹1 (~$0.011)/kWh for 10 years for PLI/non-PLI qualifying manufacturers</li>
<li>Electricity duty reimbursed for 10 years</li>
</ul>
<ul>
<li>Open access charges will be exempted for 10 years</li>
</ul>
<ul>
<li>Priority energy banking for 25 years for vertically integrated manufacturing plants</li>
</ul>
<ul>
<li>Exemption from development and supervisory charges for power connectivity</li>
</ul>
Wind Projects
Developers can establish MW-scale wind power projects through open access.
Reactive power charges will be ₹0.25 (~$0.0029)/kVARh for up to 10% of the net energy generated and ₹0.50 (~$0.0058)/kVARh for the remaining energy.
Incentives for Wind Turbine Manufacturing 
<ul>
<li>Acquisition of land on actual cost basis and priority allotment of revenue/government land on a long-term lease basis</li>
</ul>
<ul>
<li>Reimbursement of 100% net SGST on sale of products for seven years</li>
<li>Exemption of open access charges for 10 years</li>
<li>Subsidy on electricity tariff of ₹1 (~$0.012)/kWh and reimbursement of electricity duty lasting 10 years</li>
</ul>
Incentives for Wind-Solar Hybrid Projects
Reactive power charges applicable will be ₹0.25 (~$0.0029)/kVARh for up to 10% of the net energy generated and ₹0.50 (~$0.0058)/kVARh for the remaining energy.
Incentives for Green Hydrogen
<ul>
<li>A 100% exemption of electricity duty for power consumed for green hydrogen production for up to 20 years</li>
<li>A 100% waiver of interstate transmission and wheeling charges on energy consumed for up to 20 years</li>
<li>Waiver of additional surcharge and cross-subsidy charge for up to 20 years</li>
<li>Banking of power for up to 30 days with the state DISCOM and 50% waiver on monthly banking charges for 25 years</li>
<li>Capital subsidy of up to 30% on electrolyzer stack projects and equipment of at 2,000 KTPA capacity</li>
<li>Capital subsidy of up to 25% on equipment costs for projects utilizing 2G lignocellulosic biomass feedstock. The project must have a minimum capacity of 10 TPD</li>
<li>A 50% waiver on water supplied</li>
<li>A five-year exemption of motor vehicle taxes for green hydrogen vehicles</li>
</ul>
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78170 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1.png" alt="" width="874" height="291" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1.png 874w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1-300x100.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1-768x256.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1-650x216.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1-624x208.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/Green-hydrogen-CS-1-600x200.png 600w" sizes="(max-width: 874px) 100vw, 874px" /></a>
Incentives for Electrolyzer Manufacturing Facilities
<ul>
<li>A 25% capital subsidy on expenditure for electrolyzer manufacturing projects, having a yearly production capacity of least a 250 MW. The subsidy will be applicable only for the first ten projects or up to 3,000 MW</li>
<li>A 25% exemption on the applicable industrial water charges for five years</li>
<li>A 100% reimbursement of net SGST paid, limited to 200% of the CGST on proton exchange membranes</li>
<li>A 100% reimbursement of electricity duty for five years</li>
<li>Reimbursement of power tariff at ₹1 (~$0.011)/kWh for five years</li>
</ul>
Incentives for Hydrogen Refuelling Stations
<ul>
<li>A 25% capital subsidy on fixed capital investment for hydrogen refueling project for the first 10 units for five years</li>
<li>A 100% net SGST reimbursement for refueling station machinery purchase for seven years</li>
</ul>
Incentives for PSP
Capital investment support of more than ₹3 billion (~$350.66 million) for ultra-mega projects.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78179 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3.png" alt="" width="928" height="268" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3.png 928w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3-300x87.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3-768x222.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3-650x188.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3-624x180.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/capital-subsidy-3-600x173.png 600w" sizes="(max-width: 928px) 100vw, 928px" /></a>
SGST Reimbursement on Capital Investment
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78177 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2.png" alt="" width="874" height="291" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2.png 874w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2-300x100.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2-768x256.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2-650x216.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2-624x208.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/psp-sgst-2-600x200.png 600w" sizes="(max-width: 874px) 100vw, 874px" /></a>
<ul>
<li>Exemption of electricity duty for 25 years</li>
<li>Exemption on cross-subsidy surcharge and additional surcharges for 20 years</li>
<li>No imposition of free power to the home state</li>
<li>Exemption from paying the cost of local area development</li>
<li>Exemption of transmission charges for a maximum of 20 years</li>
<li>Distribution/wheeling charges will be exempted for a maximum of 20 years</li>
<li>Energy banking will not be extended for captive power projects supplying power to PSP projects</li>
</ul>
Incentives for BESS
<ul>
<li>Distribution &amp; wheeling charge waivers for 12 years</li>
<li>Lifetime waiver of electricity duty</li>
<li>100% reimbursement of net SGST for seven years</li>
</ul>
Incentives for Battery Manufacturing Plants
<ul>
<li>Acquisition of land on an actual cost basis</li>
<li>Reimbursement of 100% stamp duty paid on purchase or lease of land</li>
<li>Lease of land/shed/buildings, mortgages, and hypothecations related to BESS manufacturing plant</li>
<li>Reimbursement of fixed power cost at ₹1 (~$0.011)/kWh for five years</li>
<li>Reimbursement of electricity duty for five years</li>
<li>Waiver of cross-subsidy surcharge for 10 years</li>
<li>100% Reimbursement of net SGST accrued for seven years</li>
</ul>
Incentives for EV Charging Infrastructure
<ul>
<li>Government/public land allocated at a floor price of ₹1/kWh for private operators</li>
<li>Separate EV tariff category with time-of-day pricing</li>
<li>Mandate for charging stations in commercial and residential complexes with a built-up area of 5,000 sq m</li>
<li>Utilization of unoccupied government land on highways for charging stations</li>
<li>Development of mobile apps to identify existing EV charging stations</li>
<li>A 100% exemption on electricity duty for consumed renewable energy</li>
<li>Encouragement of renewable energy manufacturing zone development</li>
</ul>
In 2024, The Assam Electricity Regulatory Commission <a href="https://www.mercomindia.com/assam-regulator-settlement-mechanism-rules" target="_blank" rel="noopener">released</a> the Assam Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024 draft.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.

Assam Aims for 11.7 GW Renewable Energy Capacity by 2030

The Chhattisgarh State Electricity Regulatory Commission (<a href="http://cserc.gov.in/" target="_blank" rel="noopener">CSERC</a>) has issued a draft notification for the state’s renewable purchase obligation (RPO) and renewable energy certificates (REC) framework regulations for 2021-2026.
The Chhattisgarh State Renewable Energy Development Agency (CREDA) will be the designated state agency for accrediting and recommending renewable energy projects for registration. The agency must publish a summary statement of renewable energy procurement and RPO compliance by different obligated entities by April 15, 2021, on its website.
The CSERC said that it would remunerate the agency from time to time and assign other responsibilities as required. The regulations are set to come into effect from April 1, 2021. The Commission invited comments and suggestions on the draft regulations on or before April 8, 2021.
Applicability: 
These regulations will apply to all distribution companies (DISCOM), open access consumers, and captive power users in the state. Co-located and non-co-located captive users with a connected load of 1 MW and above will be subject to a base percentage of RPO to the extent of the captive consumption met through the captive generating project.
The regulations also apply to open access (OA) consumers with a capacity of 1 MW and above who procure non-renewable power will be subject to a minimum RPO percentage to the extent of non-renewable power consumed. This applies only to consumers who do not have a supply agreement with their respective area’s DISCOM. Consumers who have supply agreements with their DISCOMs and also with other individuals under OA regulations will also be subject to a minimum RPO percentage requirement.
Obligated entities who consume power to the extent of the total RPO specified from fossil fuel-based co-generation power projects will be exempted from the minimum RPO requirement.
RPO Targets for Obligated Entities: 
The RPO targets will be calculated based on different consumption parameters for obligated entities. For distribution licensees, RPO will be computed based on low-voltage, high-voltage, and extra-high-voltage sales.
For co-located captive users and co-located end users who do not qualify as captive users, RPOs will be computed based on gross generation after subtracting auxiliary consumption and total energy injected into the grid.
For non-co-located captive users, the actual energy consumed by the captive generating project will be factored in to discover the RPO targets. Finally, OA consumers will get their targets based on their energy consumption.
Only renewable power purchases under long-term power purchase agreements (PPA) with biomass-based generating projects would be considered for meeting RPO targets. It also noted that purchases from other renewable sources, including small hydro, wind, and solar under long, medium, or short-term arrangements, would be considered for meeting RPO requirements.
The regulations provided that existing long-terms PPAs for renewable power purchase shall remain valid and that any excess purchase over prescribed percentages will be adjusted to meet the next year’s targets. It noted that the RPO targets for captive users with captive projects commissioned before April 1, 2016, will have targets applicable for the financial year 2015-2016 (1% solar and 6.25% non-solar).
Distribution Licensees: 
DISCOMs are required to provide an estimate for the amount of renewable energy required for the ensuing year in the tariff or annual performance review petition as per the Commission’s regulations. If the actual energy consumed is different from the estimate, the RPO in (million units) shall be deemed to have been modified according to the prescribed percentages.
They are also required to submit details regarding total electricity purchases or consumption, and purchase of renewable energy for meeting RPO targets every month to CREDA.
Defaults
Obligated entities that do not meet their targets during any financial year will be directed to maintain a separate fund for an amount that will be specified by the Commission. The Commission will determine the amount based on the shortfall in units and the forbearance price as determined by the Central Electricity Regulatory Commission (CERC). This fund will be utilized as per the state Commission’s directives.
If defaulters provide a genuine reason for non-compliance, they can approach the Commission to be allowed to carry forward the unmet compliance requirements to the next year.
Renewable Energy Pricing
All renewable projects commissioned during the control period will be given the option to follow either the tariff structure and other conditions per the CSERC’s tariff regulations or the REC mechanism for power pricing from the project. Renewable projects with long-term PPAs for the sale of power at a preferential tariff that has prematurely terminated their agreements will not be eligible for participating in the REC program for three years from the date of termination of their agreement.
Projects that opt for either the preferential tariff or the REC mechanism will have to continue with their choice for the entire tariff period or until their PPA expires, whichever is later. The regulations said that the prices of RECs will be as discovered in power exchanges for the duration of the regulations.
OA renewable power consumers will be required to pay cross-subsidy surcharges as specified by the Commission’s OA regulations. No banking facilities will be provided for third-party sales from renewable sources through open access.
Earlier, the Punjab State Electricity Regulatory Commission <a href="https://mercomindia.com/amendments-rpo-regulations-captive-projects-punjab/" target="_blank" rel="noopener">proposed</a> to cap the RPO for captive power projects. It has invited feedback from the industry on or before March 17, 2021.
Mercom has previously <a href="https://mercomindia.com/government-shifts-focus-solar-manufacturing-rpo/" target="_blank" rel="noopener">written</a> about the importance of meeting RPO targets. The power market also <a href="https://mercomindia.com/rec-market-counting-on-rpo-compliance-deadline-extension-amidst-trading-halt/" target="_blank" rel="noopener">awaited</a> the end of an over seven-month halt in the trading of REC, and stakeholders remained hopeful of a deadline extension from their respective state electricity regulatory commissions to meet their targets.

Chhattisgarh Releases Draft Renewable Purchase Obligations Regulations for 2021-2026

The Tamil Nadu Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener noreferrer">TNERC</a>) approved a tariff rate of ₹2.91 (~$0.04)/kWh for procuring about 441 MW of wind power through the Solar Energy Corporation of India (SECI) for 25 years.
The order followed a petition from the Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>), which requested the Commission to approve the tariff to procure power through SECI’s tender (Tranche-VIII) so it could meet its renewable purchase obligation (RPO) targets. The tariff included a trading margin of ₹0.07 (~$0.001)/kWh.
TANGEDCO cited the Ministry of Power’s (MoP) target of 175 GW of renewable energy power by 2022, of which wind power is to constitute 60 GW. Of this, TANGEDCO is expected to contribute 3.5 GW.
It stated that it expects to achieve about 2.1 GW of this target by 2021-2022. For the rest, the distribution company said it has already floated a tender to procure 500 MW of wind power at a tariff of ₹3.46 (~$0.05)/kWh, of which 450 MW has been finalized, with the power purchase agreements (PPA) signed.
However, TANGEDCO explained that it had had setbacks with this project as one of the bidders has only commissioned 49.5 MW of its promised 200 MW while the other successful bidder has not started work on its project at all. Both bidders have sought for a timeline extension from the state commission. The projects had to be commissioned by March 2019, according to the PPA.
The DISCOM also noted that as per the Commission’s previous order, it had to procure 1.5 GW of wind energy in three stages of 500 MW, each with a ceiling tariff of ₹2.65 (~$0.037)/kWh. However, because these tenders received a poor response, it appealed to the appellate tribunal (APTEL) to remove the ceiling tariff.
The DISCOM explained that, given these circumstances, the board members approved a proposal to procure 440.64 MW of wind power through SECI’s tender for ₹2.91 (~$0.04)/kWh [₹2.84 (~$0.039) + ₹0.07 (~$0.001) trading margin].
It explained that the tariff is much lower than ₹3.42 (~$0.047)/kWh set previously through competitive bidding, and comparable to the present feed-in-tariff of ₹2.86 (~$0.40)/kWh.
In its order, the Commission approved the DISCOM’s proposal to procure 440.64 MW of wind power through the SECI for 25 years at ₹2.91 (~$0.04)/kWh to help it meet its non-solar RPO targets for the year 2021-2022.
Earlier, Mercom <a href="https://mercomindia.com/aptel-asks-tamil-nadu-commission-review-renewables/" target="_blank" rel="noopener noreferrer">reported</a> that the Appellate Tribunal for Electricity (<a href="http://www.aptel.gov.in/" target="_blank" rel="noopener noreferrer">APTEL</a>) had asked the Tamil Nadu Electricity Regulatory Commission to pass a new tariff order for power procured from renewable sources. This judgment comes in the wake of petitions filed by the National Solar Energy Federation of India Limited and Welspun Renewables Energy Private Limited, challenging the state’s tariff order.
Previously, the Tamil Nadu Electricity Regulatory Commission <a href="https://mercomindia.com/tamil-nadu-likely-set-solar-rpo-fy-2020/" target="_blank" rel="noopener noreferrer">invited</a> suggestions and comments on the proposed amendments to its renewable purchase obligations. The Commission was mandated to set RPOs for the financial years 2019-20, 2020-21, and 2021-22. The Commission has already notified the RPO for the financial year 2017-18 in its regulations.

Tamil Nadu Commission Approves Tariff of ₹2.91/kWh for 441 MW of Wind Projects

The National Institute of Transforming India <a href="http://www.niti.gov.in/" target="_blank" rel="noopener noreferrer">(NITI) Aayog</a>’s sustainable development goals (SDG) index showed that Kerala, Himachal Pradesh, Andhra Pradesh, Tamil Nadu, and Telangana held the top spots in terms of progress towards sustainable development targets.
The SDGs are a collection of 17 global goals intending to end poverty, fight inequality, and address the urgency of climate change. The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by the year 2030, is part of UN Resolution.
The index represents the progress made by India’s states and union territories towards achieving the 2030 SDG targets.
SGD 7 (or Goal 7) refers to the progress made towards achieving energy security and efficiency by increasing sustainable per capita energy consumption, while also ensuring a reduction in emissions and pollution as per global and national targets.
The Goal has three key components: universal access to electricity and clean cooking fuel, increasing share of renewable energy in the country&#8217;s energy mix, and improving energy efficiency, endorsed in the National Energy Policy.
The report recognizes that the government has targeted programs towards achieving electricity for all, providing increased access to LPG for clean cooking and reduced dependency on biomass for the households. The country&#8217;s energy mix is also expanding towards renewable energy (solar, wind, small hydropower, waste-to-energy, among others), increasing the installed capacity and increasing access. Energy efficiency is promoted through enforcing standards and labeling of equipment and appliances, energy conservation building codes for commercial buildings, energy consumption norms for energy-intensive industries, and strengthening regulatory institutions and infrastructure.
In the case of India, two national-level indicators (percentage of households using clean cooking fuel (LPG) and percentage of households electrified) to measure performance towards the goal of affordable and clean energy were identified.
<a href="https://mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-17165" src="https://mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States.png" alt="Index Scores of States" width="1417" height="1652" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States.png 1417w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-257x300.png 257w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-878x1024.png 878w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-768x895.png 768w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-1318x1536.png 1318w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-650x758.png 650w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-624x727.png 624w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Index-Scores-of-States-600x700.png 600w" sizes="(max-width: 1417px) 100vw, 1417px" /></a>
Sikkim was the top-performing state for Goal 7, while Puducherry scored the highest among union territories, the report showed. It also documented that 17 states and eight union territories made it to the ‘Front Runners’ category implying that these states are making faster progress towards the target of achieving electricity for all and increasing the number of households using clean cooking fuel (LPG).
Goal 13 refers to the integration of climate action into national policies and strategies. This climate action requires the incorporation of both climate change mitigation and climate change adaptation, according to the report.
Referring to Goal 13, the report mentions India’s policies such as the National Action Plan on Climate Change (NAPCC), which outlines a detailed strategy to deal with climate change-related issues while adopting advanced technologies. In India, 32 states/UTs have a State Action Plan for Climate Change (SAPCC), and currently, there are 19 wind and 15 solar policies to fight climate change, the report states. Other policies including India’s target of installing 175 GW of renewable energy generation capacity by 2022, establishing the National Air Quality Monitoring Programme (NAMP) to monitor air quality with a network of 680 monitoring stations located in 300 cities, covering 29 states and six UTs are seen as India’s efforts towards Goal 13.
Karnataka and Lakshadweep were the top state and union territory, respectively, towards achieving Goal 13.
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<a href="https://mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-17167" src="https://mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1.png" alt="Performance of States" width="1312" height="925" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1.png 1312w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-300x212.png 300w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-1024x722.png 1024w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-768x541.png 768w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-650x458.png 650w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-624x440.png 624w, https://cms.mercomindia.com/wp-content/uploads/2020/01/Performance-of-States-1-600x423.png 600w" sizes="(max-width: 1312px) 100vw, 1312px" /></a>
The NITI Aayog report highlights that the most significant progress had been made in goals 6 (clean water and sanitation, 9 (industry, innovation, and infrastructure) and 7 (affordable and clean energy).
“NITI Aayog has committed itself to building capacities and monitoring progress at the state level. Close coordination with the states over the next five years will further accelerate SDG localization and ensure greater improvement,” said Rajiv Kumar, Vice Chairman at NITI Aayog.
In 2018, NITI Aayog and the Confederation of Indian Industries (<a href="https://www.cii.in/" target="_blank" rel="noopener noreferrer">CII</a>) entered a partnership for sustainable development in India.
Last year, the <a href="http://thecommonwealth.org/" target="_blank" rel="noopener noreferrer">Commonwealth of Nations</a> and the International Solar Alliance (<a href="http://isolaralliance.org/" target="_blank" rel="noopener noreferrer">ISA</a>) signed a Memorandum of Understanding to <a href="https://mercomindia.com/isa-commonwealth-partners-solar/" target="_blank" rel="noopener noreferrer">expand solar power</a> in the Commonwealth member countries. Together, ISA and Commonwealth will be able to look at country-wide strategies to promote the Paris Agreement on climate change, and Sustainable Development Goals 7 and 13 on clean, affordable energy and climate action. The ISA and Commonwealth have at least twenty-eight common member countries. The ISA is a treaty-based international intergovernmental organization headquartered in India.
In another step towards meeting the sustainable development goals, in 2019, the President of India gave his <a href="https://mercomindia.com/mnre-1-75-billion-renewable-research-technology/" target="_blank" rel="noopener noreferrer">approval</a> for the continuation of the renewable energy research and technology development program for implementation during 2017-18 and 2019-20 at the cost of ₹1.75 billion (~$24.70 million). The program comes under the Ministry of New and Renewable Energy (MNRE).

NITI Aayog Reports on States’ Progress Towards Sustainable Development Goals

The Parliamentary Standing Committee on Energy has expressed its concerns about the performance of the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener noreferrer">MNRE</a>) and the country’s ability to achieve its 100 GW solar target by 2022.
The committee presented its findings to the Lok Sabha in its report titled “Demands for Grants of the Ministry of New and Renewable Energy for the year 2019-20.”
The committee raised concerns about the ministry’s underutilization of allocated budgets. It stated that only 89.88%, 92.37%, and 86.97% of the overall allotted budgets in the last three years have been used and that the explanations given by the ministry for the shortfall have been the same each time.
Citing this, the committee added that the ministry had not taken any corrective actions to address the issue of underutilization of allocated budgets. The committee advised the ministry to take remedial measures to ensure the budget is used in its entirety going forward.
Large-scale solar projects
The committee also said it was deeply concerned about the ministry’s inability to achieve annual targets since 2016 and hoped the current year’s targets are met. It added that this yearly shortfall in target achievement might hinder the government’s mission of achieving 175 GW of renewable capacity by 2022. It recommended that the ministry take corrective action in this regard and ensure the continuous monitoring of the implementing agencies.
The committee raised doubts about the MNRE’s ability to meet the country’s solar target of 100 GW by 2022, citing that only about 31 GW of solar projects (as of September 2019) have been commissioned so far. According to the committee, implementing the rest of the target would be a “huge task” in the short span of just two and a half years.
GST on solar products
The committee also talked about the ambiguity surrounding the applicability of Goods and Services Taxes (GST) for solar products and services, which could hamper the growth of the entire renewable energy sector. It cited inconsistencies in rates for renewable energy devices and spare parts, which are charged 5% GST, whereas the effective rate is around 9%. This will lead to an increase in generation costs and would pose a threat to the viability of ongoing projects. The standing committee recommended that the MNRE seek guidance from the Ministry of Finance so that the effective rate of GST on solar power systems remain consistent at around the 5% mark.
Rooftop solar
The committee expressed disappointment over the Ministry’s performance in the rooftop solar segment. It mentioned that the rooftop solar systems are not remunerative due to high maintenance costs and delay in disbursement of subsidies despite the Ministry’s assertion to the contrary. It recommended that the process of subsidy disbursement should be made swift and straightforward, and the Ministry should raise awareness on the benefits of rooftop solar. The committee also advised on adopting single-window clearance for approvals regarding connectivity, net metering, electrical inspection, and limitation in sanctioned load.
Solar pumps
Discussing the KUSUM program, the committee noted that 237,120 units of solar pumps were installed in the country (as on March 31, 2019). This was meager compared to the program’s target of installing 1 million grid-connected solar pumps by 2022. The committee expressed doubts that the already financially constrained DISCOMs may not be able to pay the farmers for the excess power supplied to the grid. The Ministry has been asked to come up with a mechanism to ensure such payment and inform the committee about it immediately.
Domestic manufacturing
The Committee is also concerned about the lack of domestic solar manufacturing capacity. To address this, the Ministry is asked to urgently formulate a dedicated program to support solar manufacturing in the country. It has been recommended to provide subsidy/Viability Gap Funding (VGF) and low-interest rate loans to domestic manufacturers to make them competitive. 
Solar financing
The committee noted that financing of about ₹2.8 billion (~$39.54 million) would be required for the additional 70 GW of solar capacity to be added by 2022 (₹40 million (~$564,810)/MW). It is also aware that banks are reluctant to lend to renewables as a result of the non-performing assets (NPAs) in the power sector. The committee has recommended that the loan basket and limit for conventional power sector be separated from renewables so that the development of the industry is not affected due to the NPAs in the conventional power sector.
None of the concerns raised by the committee is a surprise and Mercom has written about and analyzed most of these challenges in detail over the years. There has always been a huge gap between the renewable installation goal and execution and we do not see any sense of urgency among the government agencies to reach 175 GW of renewable energy by 2022.
Earlier this year, the Solar Power Developers Association (<a href="http://solarpda.com/" target="_blank" rel="noopener noreferrer">SPDA</a>) wrote to the Finance Minister expressing concerns on the additional taxes such as GST <a href="https://mercomindia.com/solar-developers-pay-gst-safeguard-letter/" target="_blank" rel="noopener noreferrer">being levied</a> in addition to safeguard duty. In another letter, the SPDA <a href="https://mercomindia.com/effective-rate-gst-solar-projects-8-9-spda/" target="_blank" rel="noopener noreferrer">noted</a> that the new recommendations from the GST Council made the effective tax rate to be 8.9%, which is considerably higher when compared to the rate of 1.5 to 2% in the pre-GST era. The SPDA had requested the government to make the entire contract for the supply of such solar power projects (including services) to have a flat GST rate of 5%.
In <a href="https://mercomindia.com/cerc-relief-solar-developers-gst-change-in-law/" target="_blank" rel="noopener noreferrer">October 2018,</a> the CERC issued an order to compensate the solar power developers by giving them an upfront lumpsum payment as compensation for the additional capital incurred after the introduction of GST Law. It also asked the government agencies to make adjustments in the quoted tariff because of the additional operating and recurring expenditure incurred for the entire term of the project.
Mercom <a href="https://mercomindia.com/solar-companies-still-waiting-gst-clarity-refunds/" target="_blank" rel="noopener noreferrer">previously reported</a> that the delay in GST reimbursement and lack of clarity is affecting solar project developers in India. The <a href="http://mnre.gov.in/" target="_blank" rel="noopener noreferrer">MNRE</a> had issued an order extending the commissioning date of solar PV <a href="https://mercomindia.com/solar-companies-still-waiting-gst-clarity-refunds/" target="_blank" rel="noopener noreferrer">projects that were affected</a> after the imposition of GST and other related issues.
After <a href="https://mercomindia.com/delhi-court-gst-council-review-tax-solar/" target="_blank" rel="noopener noreferrer">reviewing</a> a petition filed by the SPDA challenging the new tax formulation structure for solar projects, a bench of the Delhi High Court, early this year, had asked the GST Council to review the newly-introduced taxation formula.
Image credit: Pinakpani [CC BY-SA <a href="https://creativecommons.org/licenses/by-sa/4.0" target="_blank" rel="noopener noreferrer">4.0</a>]

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