MNRE Releases Draft Investment Plan for RE Integration Program, Seeks Public Feedback
The MNRE has released a Draft Investment Plan for the Renewable Energy Integration Program under the Climate Investment Funds, inviting public comments and feedback by November, 7 2024. This initiative aims to enhance renewable energy integration and support India’s sustainability goals.
October 25, 2024. By EI News Network
Spearheaded by the Ministry of Finance (MoF), in collaboration with the Ministry of New and Renewable Energy and supported by key stakeholders including the Ministry of Power (MoP), Niti Aayog, and the Central Electricity Authority (CEA), this plan aims to enhance the country's capacity for zero-carbon electricity. The deadline for submitting comments on the draft is November 7, 2024, providing an opportunity for individuals and organisations to contribute to this pivotal program.
The draft focuses on three key areas: the strategic deployment of Energy Storage Systems (ESS), strengthening grid infrastructure, and providing comprehensive technical assistance. These priorities were shaped through extensive consultations with various ministries, development organisations, grid operators, distribution companies (DISCOMs), think tanks, and implementing Multilateral Development Banks (MDBs). The plan is intended to address the immediate and near-future needs of India’s power system, which is set to be increasingly dominated by renewable energy.
A critical component of the plan is the deployment of energy storage systems, which is essential for enhancing grid flexibility. This aspect of the initiative aligns with the qualifying themes of the Climate Investment Funds (CIF) REI Programme, which focuses on scaling up renewable energy enabling technologies. Projects under this area will emphasise advanced grid management and energy storage deployment at the state level, facilitating the provision of round-the-clock (RTC) electricity supply.
Infrastructure strengthening is another vital focus area of the REI IP. This initiative aims to improve the reliability and resilience of the power grid by enhancing existing infrastructure. The projects planned in this area are in alignment with the CIF theme of preparing infrastructure for renewable energy readiness. The initiatives will concentrate on bolstering the grid in states rich in renewable resources and improving port infrastructure to support offshore wind development programs.
In addition to infrastructure and storage, the REI IP addresses the need for technical assistance throughout the renewable energy grid integration value chain. This intervention is crucial for overcoming regulatory, technical, and capacity challenges that are vital for advancing the uptake of renewable energy. It aims to navigate the complexities associated with integrating a substantial amount of renewable energy capacity into the grid. Proposed activities will include the development of advanced forecasting tools and innovative methods that promote renewable energy adoption, addressing critical gaps in the current market.
To support this ambitious plan, India is requesting USD70 million in financing from the CIF, with USD 5 million allocated for technical assistance, including project preparation grants and capacity-building initiatives. The proposed projects are expected to mobilize nearly USD 1,100 million in funding, drawing support from the Asian Development Bank (ADB), the World Bank, and the **International Finance Corporation (IFC), alongside contributions from development partners and private sector investors.
The expected outcomes of the REI IP are significant and far-reaching. The plan is projected to increase renewable energy generation capacity by approximately 1,500 MW and add around 2,800 Mus/year of renewable energy. Additionally, it aims to enhance energy storage capacity by about 1,500 MWh, supporting various applications in both generation and distribution segments. The initiative will also establish 3,700 ckm of 33 kV distribution lines and 580 ckm of 400 kV DC transmission infrastructure, thus improving the overall reliability and resilience of the grid. Importantly, the implementation of this plan is anticipated to lead to a reduction in global CO2 emissions by approximately 3.2 MtCO2/year.
Furthermore, the REI IP will foster improved policies and institutional capabilities, including the development of advanced forecasting tools and innovative methods for the integration of renewable energy into the electricity market. Initiatives such as Contracts for Difference (CFD) and Blockchain-based peer-to-peer solar rooftop systems will play a key role in this process. The financial framework is designed to leverage USD 1,100 million, which is expected to create around 13,500 full-time equivalent green jobs while also providing vital capacity-building opportunities, particularly for women officials in the renewable energy sector.
To summarise, the Renewable Energy Integration Investment Plan represents a pivotal step forward in India’s commitment to a sustainable energy future. It underscores the nation's ambitious target of achieving 500 GW of renewable energy capacity by 2030, while simultaneously working to reduce its carbon footprint and enhance energy security.
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