Will achieve 175 GW of renewable energy by 2022

KS POPLI, CMD, Indian Renewable Energy Development Agency (IREDA)

NEW DELHI: Since its inception in 1987, the Indian Renewable Energy Development Agency (IREDA) has played a pioneering role in the commercialisation of renewable energy technologies by providing innovative and customised financing solutions. KS Popli, CMD, IREDA, is confident of achieving 175 gigawatts (GW) of renewable energy by 2022. He told HT that IREDA will offer its consultancy service based on the experience it has gained over the years in saving the environment. Excerpts:

What are the top objectives for the IREDA?

We will achieve the government’s roadmap for 175 GW of renewable energy by 2022, which involves setting up 100 GW solar projects, 60 GW wind, 10 GW bioenergy and 5 GW small hydro projects. IREDA is fully geared and will further capitalise itself to play a more aggressive role in financing RE projects. Though it is difficult to project how much exposure IREDA will be able to take by 2022, it will endeavour to finance/co-finance at least 20% of the capacity by 2022, considering large projects would require consortium financing.

How do you see the IREDA’s role in saving environment?

India has pledged to reduce emission intensity by 33% to 35% by 2030 compared to 2005 levels. India has also committed to produce 40% of our electricity from non-fossil fuel-based energy resources by 2030, if inter- national community helps with technology transfer and low-cost finance, and, in addition create a carbon sink of 2.5 to 3 billion tonnes of CO2 by afforestation.

Can you highlight challenges in renewable energy generation?

Renewable energy is variable and intermittent in nature, scheduling and forecasting is still in infancy in most states. Further, the incremental cost for purchase of renewable energy is higher than average pooled power purchase cost (APPC) of utilities and therefore, there is obvious reluctance/concerns on part of utilities for buying renewable energy, as also the enforcement of renewable purchase obligations is weak at present.

What can be done?

The government has already started the work of creation of green corridor to address the issue of evacuation of transmission of RE and is likely to socialise cost of interstate transfer of RE. Further, enforcement of renewable purchase obligation (RPO) and introduction of renewable generation obligation (RGO) through an amendment in the Act would enhance the attractiveness of RE projects for lenders and investors.