Policy hurdles for renewable energy in NE

The slow pace of renewable energy development in the Northeastern region despite the availability of funds is baffling. The huge unspent balance of annual budgets of the Ministry of New and Renewable Energy allocated for the development of renewable energy development in the region paints a gloomy picture. Addressing policy bottlenecks in the development of small hydropower and other renewable sources, as recommended by the Parliamentary Standing Committee on Power, is certainly worth considering. Official data reveal that unspent balances were as high as 76%, 66% and 68% against Revised Estimates in annual budgets for the development of renewable energy for the Northeast for financial years 2018-19, 2019-20 and 2020-21. In 2021-22, the utilization stood at only Rs 38.62 till January 31 against Revised Estimates of Rs 499 crore which call for a renewed approach to the development of renewable energy in the region. The Ministry attributes the huge unspent balances to the non-receipt of adequate proposals from the states in the region but the recurrence of the problem for consecutive years is a pointer that it has not received due attention from the policymakers and executives. The parliamentary committee observed that the region has substantial potential for small hydropower, but the Ministry has discontinued the small hydropower programme in 2017 and for the last five years budget allocations have been used to clear old liabilities only. The Ministry apprised the committee that the process for formulation of a new scheme for small hydropower has started and the scheme is likely to be in place soon. The parliamentary panel recommend that the Ministry should critically review its performance under the previous small hydropower programme and formulate the new scheme in a time-bound manner after ensuring that the factors which hindered the implementation of the earlier programme are properly addressed in the new scheme. It also pointed out to the Ministry that the off-grid and decentralized solar application programme, which was initiated with a focus on areas where grid power has not reached or is not reliable; backward and remote areas in the Northeast, the Left-Wing Extremism-affected districts have also been discontinued in 2021 without achievement of the stated objectives. Over the past four years, 28 megawatts of small hydropower were developed in the region in 2018-19 while gird-connected solar power developed in the region was 19.64 MW in 2018-19; 27.1 MW in 2019-20, 5.17 MW in 2020-21 and 24.28 MW (up to January 31) in 2021-22 while only 2 MW of grid-connected renewable energy from biomass in the region during these four years. Compared to this bleak scenario in the region, the overall installed capacity of renewable energy in the country has increased to 106 gigawatts against the target of 175 gigawatts. The generation of renewable energy in the Northeast has been abysmally low given the fact that the National Institute of Solar Energy estimates the total solar energy potential of the region at 62 gigawatts. Harnessing renewable energy potential optimally is critical to India achieving its target of generating 500 gigawatts of non-fossil energy by 2030 as part of the country's climate action goals. A key reason behind the poor utilization of funds allocated for north-eastern states, according to the Ministry is both solar and wind projects are land-intensive and require large flat tracts of a shadow-free contiguous and accessible stretch of land which is difficult to find in the region. Besides, higher tariff resulting from low solar radiation per unit surface area and low wind power density becomes unviable for electricity distribution companies to purchase. Even schemes with subsidy and viability gap funding specially designed for the region find few takers as it is cheaper for utilities to purchase cheaper power from other states than to produce in their state, according to the Ministry. The parliamentary committee has recommended that the Ministry should give proper consideration and due priority to the requirements of North-Eastern States while formulating the new schemes/programmes for off-grid/decentralised solar applications and small hydropower and fully utilize the funds allocated for the development of renewable energy in this region. The significant increase in the number of annual installations of solar streetlights from only 6132 in 2018-19 to 52,315 till January 2021-22 and the distribution of over 14 lakh solar study lamps over the past four years justify the emphasis on off-grid solar applications for the region. The Ministry informs the panel that during the current financial year Solar Parks, Solar rooftops, Pradhan Mantri Krishi Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) schemes will be implemented in the region for the development of solar energy and funds will be released for catering to the projects already sanctioned under small hydro and biogas programmes which are expected to infuse a fresh momentum in the renewable energy development. State governments in the region evincing interest in renewable energy development and playing proactive roles can make a difference and improve the utilization of funds allocated for the region.