The government is planning incentives to promote renewable power and it has already issued tenders for setting up 26-GW clean energy capacities, a top IREDA official said on Friday.
Indian Renewable Energy Development Agency (IREDA) Chairman K S Popli said India is planning to produce 50 GW (from clean energy sources) in the next few years.
He was speaking at the India Energy Forum’s (IEF’s) Renewable Energy Summit here.
“Efficiency of solar cell is going up and we will witness commercial production in the next few years and policies are being relooked,” added Popli.
He also said that payment security system needs to be enhanced and suggested that some financial institutions should tie up with state governments which would be a win-win situation for both.
Popli said quality issues are prevalent in some projects and added that technology prices, however, have now become competitive.
International Solar Alliance (ISA) Director General Upendra Tripathy said that on November 26, ambassadors of 29 countries will be in Uttar Pradesh to present their views and discuss critical issues on solar panel and pricing, among others.
He also said that finance will remain key challenge for the development of renewable power projects.
IEF President Anil Razdan said recent bids have prompted the demand of long-term (15-20 years), low-cost financing (9 to 10.5 per cent) for funding the projects and to provide the same by banks/financial institutions is a challenge.
Interest margins of the banks are shrinking with consolidation in the sector. Probable risks associates with these projects include quality issue — ensuring their quality at the low tariffs may become a challenges.