Consider the following statements about the renewable energy sector 1 Foreign Direct Investmen...........

Geography Renewable Energy

Consider the following statements about the renewable energy sector:

(1) Foreign Direct Investment (FDI) up to 100% is permitted under automatic route for therenewable energy sector.

(2) Energy Distribution companies must open and maintain an adequate Letter of Credit (LC) as a payment security mechanism for Energy Generation firms.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

. Neither 1 nor 2

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Explanation:

Explanation:
Both statements are correct.
The major efforts being taken by the Government to meet the targets of renewable energy in the country, inter-alia, include:
• Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route, strengthening of Power Purchase Agreements (PPAs). So, statement 1 is correct.
• mandating requirement of Letter of Credit (LC) as payment security mechanism by distribution licensees for ensuring timely payments to RE generators. So, statement 2 is correct.
• the setting of Ultra Mega Renewable Energy Parks to provide land and transmission on a plug and play basis to investors,
• waiver of Inter-State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by 31st December 2022,
• notification of standard bidding guidelines to enable distribution licensee to procure solar andwind power at competitive rates in a cost-effective manner,
• declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
• laying of transmission lines under Green Energy Corridor Scheme for the evacuation of Power in Renewable rich states,
• launching of new schemes, such as, PM-KUSUM, Solar Rooftop Phase II, 12000 MW CPSUScheme Phase II, etc.