Context:
The Indian Renewable Energy Development Agency (IREDA) recently participated in an international webinar organized by the World Bank. The session focused on India’s renewable energy scenario, highlighting its ambitious targets to address climate change and ensure energy security.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Key Points from IREDA’s World Bank Webinar Address
- Indian Renewable Energy Development Agency (IREDA)
Key Points from IREDA’s World Bank Webinar Address
India’s NDC Investment Requirements:
- India’s Nationally Determined Contributions (NDCs) for 2030 entail investments of Rs 30 lakh crore.
- Goals include a 45% reduction in emissions intensity of GDP by 2030 and achieving 50% cumulative electric power capacity from non-fossil fuel sources.
Diversified Investment Areas:
- Investments are needed in solar power, electrolysers, wind and battery space, power transmission, Green Hydrogen, hydro power, and waste-to-energy sectors.
PM Surya Ghar Muft Bijli Yojana:
- IREDA emphasized the importance of this rooftop solar scheme.
- Aiming to solarize 1 crore households, it involves an investment exceeding Rs. 75,000 crores.
- Provides up to 300 units of free electricity monthly, promoting awareness of renewable energy.
Renewable Energy Meeting Energy Demand:
- India’s energy demand, driven by government plans, will largely be met through renewable sources.
- Approximately 90% of the increased energy demand is expected to come from renewables.
- Thermal energy will be developed alongside until sufficient energy storage for renewables is achieved.
Indian Renewable Energy Development Agency (IREDA)
Establishment and Nature:
- IREDA was established in 1987 as a specialized non-banking finance agency.
- It is a Public Limited Government Company functioning as a Non-Banking Financial Institution.
- Recognized as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956.
- Registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
Purpose and Scope:
- IREDA focuses on promoting, developing, and providing financial assistance for projects related to renewable energy sources and energy efficiency/conservation.
Objectives:
- Financial Support: IREDA aims to provide financial assistance for specific projects and schemes involved in electricity and/or energy generation through new and renewable sources.
- Leading Role: IREDA strives to maintain its position as a leading organization in offering efficient and effective financing for renewable energy and energy efficiency/conservation projects.
