Shri M.Venkateshwarlu, President,Telangana Chambers of Commerce and Industry
KINDLY LET OUR READERS KNOW ABOUT THE INITIATIVES TAKEN BY TECCI FOR THE GROWTH OF SOLAR SECTOR IN TELANGANA STATE ?
When the state was newly formed in June 2014, TECCI submitted a detailed Report to the Government covering all aspects of Trade, Commerce, Agriculture and Industry. We made a significant mention about the power sector with a special focus on the need and potential of Solar sector in Telangana state.
We are glad that many of our recommendations have been accepted by the Government and they are reflected in the relevant Government Orders. These recommendations include establishment of solar power plants, Roof tops and Floating Solar Plants.
We wanted Hyderabad to be converted into a Solar City on then lines of Gujarat and karnataka immediately after the state came into existence. We are aggressively on the job to achieve this goal not only in Hyderabad but also across Telangana region wherever an adequate radiation is found viable.
Telangana State is today forging ahead with its continuous growth with a tenacity to occupy more and more space on the Solar Platform of the country. We have a team of experts who are making a study thoroughly at every nook and corner of the state. This Report will be ready some time in the month of April/May 2020 which will be submitted to the Government Authorities for initiating necessary measures.
HOW CAN THE ROOFTOP SECTOR IN TELANGANA BE FURTHER STRENGTHENED? WHAT ARE THE EFFORTS BEING MADE BY TECCI FOR ITS GROWTH ?
Rooftop Sector in Telangana is getting a momentum contrary to the expectations when compared to the other states in the country. The State has an excellent potential with average solar isolation of 5.5 KWH/m2 for more than 300 sunshine days. Hence, there is an ample opportunity and scope for further growth of this sector provided some more revolutionary measures are accepted and kept in place by the Government.
In fact, the Municipal Corporations, Distribution Companies and Telangana State Renewable Energy Development Corporation (TSREDCO) have a great role to play for the growth of Solar Roof tops. The decisions of the prospective Developers/Producers depend on their support and incentives.
TECCI is making its following efforts with the Government in the process of strengthening this sector to be one of the top states in the country.
- The new buildings in all Domestic, Commercial and Industrial sectors should install the roof top solar plant preferably covering 30% to 50% of their roof space or maximum space which they can afford. This should be a condition for granting building approval by the concerned authorities.
- Strict and efficient implementation of Single Window Clearance for open access projects without impediments of every sort by the concerned authorities. This should be a time bound program. If the approval takes more than the specified time, it will be simply presumed that the clearance is obtained the way the industrial policy is designed by the Government in the year 2015.
- Applications for Net Metering should be completely online with single window approvals. Consumers availing net metering should also be allowed to avail off site solar.
- Data regarding the DISCOM’s distribution transformers should be made available publicly to enable the developers for their upfront planning.
- Some of our Members strongly feel that they need encouragement and a helping hand from DISCOMS for establishing the plants under captive mode as per Electricity Rules 2005. In fact , the developers are the babies or partners in progress of DISCOMS and they cannot af ford to be their competitors.
- TECCI is making its efforts by conducting suitable awareness programs through workshops, seminars, panel discussions, national and international conferences. The Developers in the Domestic, Commercial and Industrial sectors are invited to these events as stakeholders for this movement .
WHAT IS THE MARKET POTENTIAL FOR INDUSTRIAL ROOFTOP SOLAR IN TELANGANA?
The new buildings in all Domestic, Commercial and Industrial sectors should install the roof top solar plant preferably covering 30% to 50% of their roof space or maximum space which they can afford. This should be a condition for granting building approval by the concerned authorities.
Strict and efficient implementation of Single Window Clearance for open access projects without impediments of every sort by the concerned authorities. This should be a time bound program. If the approval takes more than the specified time, it will be simply presumed that the clearance is obtained the way the industrial policy is designed by the Government in the year 2015.
Applications for Net Metering should be completely online with single window approvals. Consumers availing net metering should also be allowed to avail off site solar .
Data regarding the DISCOM’s distribution transformers should be made available publicly to enable the developers for their upfront planning. Roof top Sector in Telangana is getting a momentum contrary to the expectations when compared to the other states in the country. The State as an excel lent potential with average solar isolation of 5.5 KWH/m2 for more than 300 sunshine days. Hence, there is an ample opportunity and scope for further growth of this sector provided some more revolutionary measures are accepted and kept in place by the Government.
In fact , the Municipal Corporations, Distribution Companies and Telangana State Renewable Energy Development Corporation (TSREDCO) have a great role to play for the growth of Solar Rooftops. The decisions of the prospective Developers/Producers depend on their support and incentives.
TECCI is making its following efforts with the Government in the process of strengthening this sector to be one of the top states in the country.
WHAT IS THE MARKET POTENTIAL FOR INDUSTRIAL ROOFTOP SOLAR IN TELANGANA?
We would like to place the fol lowing requests before the Government of Telangana again for consideration.
- The Solar Power Policy 2015 has to be made more and more viable to attract the investors o build projects. Any draft policy in any area of operation needs to be finalized within an year to serve the purpose for which i t was drafted. Making amendments can be a continuous process in the interest of the requirement and prosperity of this sector. We recommend that the benefits provided under this Pol icy have to be further extended for at least 2,3 years more in order to get the expected and estimated impetus to the growth of this sector.
- Though the current trends reveal a decline in the cost , better plant performance and its self -sustaining capabilities, the restoration of this facility would greatly widen the customer base for solar adopt ion in the state especially in sectors like Agriculture, Residential and MSME.
- We feel that the Income Tax may be exempted for this industry during the initial year . This can be calculated on the basis of capital investment minus subsidy, i f any. This exempt ion can be made in two installments also in the first and second year , if required. Captive power plants or open access solar roof top plants may be permitted to the 50% capacity of the user which is existing in Gujarat without any restrict ions or hassles.
- Net Metering is an extremely worthy facility provided by the Government which would contribute to tremendous growth of this sector while encouraging the customers and protecting the environment . But , unfortunately many of our Members and system
integrator are getting f rust rated taking it as a deter rent due to inordinate delays that are taking place during the process of net metering. There should be a streamlined procedure in place with all timelines for this purpose. I f this process is made on line, it would pave the way for quick completion and commissioning of the projects. - Billing settlement should change from six months to one year to adjust the uni ts of consumption as solar IRR vary seasonally.
- Taking stock of the prevailing scenario in the states like Tamil Nadu, Karnataka, Haryana and Uttar Pradesh for an upfront review of their policy frameworks in respect of wheeling and banking facilities etc. This is to explore the possibilities of implementing in our own way in Telangana state for the accelerated growth of this sector.
- In the process of promoting green power revolution, the Government has to make the Solar Roof top mandatory for the industries to enhance the installations in the state.
- Considering and exploring the possibilities for removal of barriers for industries in respect of quantum of generation as desired by the Industries in view of their capabilities and competence.
- Release of subsidy must be made simpler and fast . It is usually taking six months to one year . Most of the system integrator are small entrepreneurs and cannot sustain this delay in payment.
- Facilitating open access for renewable energy both for captive and third party sale to the extent of 50% use, allowing banking, strictly implementing RPO, concession in wheeling charges, considering the possibility of increasing the CMD limit of approval from 80% for
installing solar power system.
WHAT ARE THE CURRENT BOTTLENECKS BEING FACED BY THE INDUSTRIES WHILE INSTALLING ROOFTOP SOLAR PROJECTS IN TELANGANA?
Capacity limitation to 1 MWp seems to be one of the major hurdles for consumers who have enough space and load to accommodate more solar power.
The industry feels that the discontinuity of providing subsidy on the part of the state Government is also an impediment to rise to the occasion for promoting green power revolution.
There are some administrative inconveniences right from obtaining permission to the installation of net meters which are to be taken up for an immediate and thorough review.
AS AN ASSOCIATION, WHAT STEPS HAVE YOU TAKEN TO ENSURE THAT MORE MANUFACTURING INDUSTRIES FOCUS ON GREEN ENERGY CONSUMPTION ?
Fortunately, we have a strong and stable Government which is putting all the efforts for the accelerated growth of this industry. We have a very proactive Special Chief Secretary (Energy) , Mr.Ajay Mishra, IAS, who has a strong vision and foresight for the growth of this industry in the state.The Energy Department is aggressively making use of the positive environment prevailing in the solar atmosphere in association with the Government of India to harness solar potential in the state.
There has been an increasing demand continuously from the year 2018 with grown up industrial activity including MSME sector and the state touched a peak demand of 12,060 MW on 17th February 2020.
Presently, we have total installed capacity of 95.21MW and an additional technical feasibility has been issued by the Government for another 40.14 W.
I also understand from one of the survey reports that it is about 5% of the total potential which is catered by solar in both residential and industrial areas and i t may be even lesser than 1% when compared to commercial sector .
Keeping this view, TECCI wants to boost up solar roof tops by conducting various awareness programs with all the stakeholders on the incentives offered by both the Governments of India and Telangana. TECCI is also making i ts efforts to establish a tie up between the Banks and owners of residential flats/ houses for the loan component .
It is observed that the presence of CSR is very negligible in the clean energy sector as of today. TECCI wants to concentrate on this score and approach all major Indian companies in the country to take this initiative for Roof top Solar in Telangana state.
This will not only create employment opportunities and solve intermittent power supply but also reduce hundreds and thousands of carbon dioxide every month while meeting 30 to 50% of their power needs through onsite and of f -site solutions at a reduced power cost.
TECCI will have regular interactive meetings with the Authorities concerned and bring to their notice about the suggestions, recommendations and grievances of the Members. TECCI will make all the efforts to get the above reforms/ recommendations considered by the government to the maximum extent in order to make the industries to focus and concentrate on Green Energy Consumption.
