manjit singh.docx

Public Policy Analysis Paper Green Energy: A Policy Perspective

Level ‘E’ Training Programme for Deputy/Under Secretaries of Central Secretariat Service (CSS)

1

Public Policy Analysis Paper

On

GREEN ENERGY : A POLICY PERSPECTIVE

Submitted in total fulfillment of the requirement for Level ‘E’ Training Programme

(23rd March – 3rd May, 2015)

Submitted By Group-II:

Ajit Kumar

F.D.Initha

M.S.Nayar

K.K.Jha

G.S.Arora

Alka Ahuja

INSTITUTE OF SECRETARIAT TRAINING AND MANAGEMENT


PUBLIC POLICY ANALYSIS PAPER

GREEN ENERGY: A POLICY PERSPECTIVE

TABLE OF CONTENTS

Chapter No.

CONTENTS Page Nos.

… Acknowledgment 3… List of Abbreviations/Acronyms 4… Executive Summary 51. Green Energy: An Introduction

1.1 Background1.2 Introduction1.3 The Problem Statement

8-13

2. Green Energy: Indian Scenario 2.1 The present scenario and potential 2.2 Types of green energy 2.3 India’s Energy Response 2.4 India’s Push for Renewable Energy 2.5 Aggressive goals for renewables 2.6 Still committed to coal

14-22

3. Existing Institutional/ Policy Framework 3.1 Institutional Mechanisms 3.2 Regulatory Framework

23-28

4. Alternate Policy for Green Energy 4.1 Alternate Policy 4.2 Enhancement in target for RPO 4.3 Implementation of HPO 4.4 Massive Solar Mission

29-38

5. Additional Recommendations/ Aspirations 5.1 Decentralized solar energy system 5.2 Rural Electrification 5.3 Green Buildings 5.4 Renewable Energy based cooking system

39-42

6. Role of Central and State Govt./NGOs/IPPs 437. Bibliography/Webliography 44

2


3


ACKNOWLEDGEMENT

We, the members of Group-II, undertaking the 29th batch of Level ‘E’ Training Programme for deputy/Under Secretaries of the CSS at ISTM, New Delhi from 23rd March to 3rd May, 2015 express our gratitude to the Department of Personnel & Training (CS Division), Government of India for having us nominated to attend this prestigious Training Programme which enabled us to broaden our outlook and also exposed us to a better decision making and analytical techniques.

We are also grateful to the faculty of ISTM Shri Satyajit Mishra (Course Director), Joint Director and Shri Vadali Ram Babu (Course Coordinator), Deputy Director and for having provided us with insights and guiding us during the course of the preparation of this policy paper. We are also thankful to Shri Umesh Kumar, Director, ISTM and Shri. Chandan Mukherjee, Deputy Director (ISTM) and also to all academic and administrative officials, especially Shri Sethuraman for his support and valuable guidance and interactions at regular intervals.

The Group also expresses its gratitude to the Ministry Of Power, Ministry of New & Renewable Energy, Ministry of Coal and Central Electricity Authority (CEA) without active assistance and cooperation of whom, this paper would not have been prepared.

A set of thanks to all the participants for providing moral support and intellectual inputs for completing this paper.

Ajit KumarF.D.Initha

M.S.NayarK.K.Jha

Alka AhujaG.S.Arora

4


LIST OF ABBREVIATIONS

EXECUTIVE SUMMARY

5

S.No. Acronym Definition

1. HPO Hydro Power Purchase Obligation

2. HEPs Hydro Electricity Projects

3. RPO Renewable Purchase Obligation

4. IC Installed Capacity

5. MW Mega Watt

6. REC Renewable Energy Certificates

7. EC Act Energy Conservation Act

8. CEA Central Electrification Authority

9. SERC State Electricity Regulatory Commission

10. CERC Central Electricity Regulatory Commission

11. IPP Independent Power Producers

12. MNRE Ministry of New & Renewable Energy

13. BEE Bureau of Energy Efficiency

14. CSP Concentrated Solar Power

15. IEPR Integrated Energy Policy Report

16. IREDA Indian Renewable Energy Development Agency

17. PPA Power Purchase Agreement

18. RPS Renewable Portfolio Standards

19. PMD Performance Management Division

20. RFD Results Framework Document

21. MoP Ministry of Power

22. MoEF Ministry of Environment and Forest

23. JNNSM Jawaharlal Nehru National Solar Mission


Energy plays a central role for the development and growth of a nation’s economy and it is a key indicator to its prosperity. For more than a century, Fossil fuels have been one of the cheapest and most prevalent source of energy. On one hand, the sources for fossil fuels are depleting fast and on the other hand, they have been held responsible for causing irreparable loss /degradation to the global environment and ecological climate, and also causing heavy burden on the exchequer of the world economies as the prices of fossil fuels have soared very high. Simultaneously, energy deficit has been most challenging factor for India. Therefore, GREEN ENERGY has rightly been advocated as a panacea to all these problems

The Govt. has initiated efforts to achieve 24x7 power for all. However, it is to mention that the Real-time Demand and Supply vary constantly. For long, conventional sources of Coal, Gas, Nuclear and hydro power stations apart from some Diesel stations formed the backbone of our power system. Of late, non-conventional sources like the Solar, Wind etc. power system in the country are also contributing significant infirm power to the system. The Govt. have initiated efforts to give further push to the development of these renewable resources other than hydro power like Solar and Wind in big way. However, the power from these renewable resources is intermittent in nature and also not very dispatchable–friendly i.e. these generating plants cannot be turned on or off, or cannot adjust their power output on demand. Therefore, power systems have to follow both varying electricity demand as well as to adjust to an increasingly variable power intake. As such, back-up power and flexible generation from other sources would be required to balance the demand and supply or the load-shedding has to be resorted. Therefore, ensuring system stability and a continuous flow of electricity by balancing fluctuations in frequency and voltage in future is also a challenge since with increasing share of wind and solar power, the electricity system will face ever more generation-driven fluctuations.

Further, India’s substantial and sustained economic growth, increasing prosperity and urbanization, rise in per capita consumption, and spread of energy access is placing enormous demand and supply imbalance in energy sources requiring serious efforts by State / Central Government to augment energy supplies with an ambitious plan of capacity addition in Renewable Energy Sector.

On one hand, there is a threat of increase in energy deficit, creating serious problems for India’s future energy security. It is apparent that there is a significant

6


risk of lesser thermal capacity being installed on account of lack of indigenous coal in the coming years because of both production and logistic constraints, and increased dependence on imported coal. Significant accretion of gas reserves and production in recent years is likely to mitigate power needs only to a limited extent. Difficulties of large hydro are increasing and nuclear power is also beset with problems. Already, in the electricity sector, current official all-India peak deficits are around 13% (CEA website) which may increase further. Therefore, Renewable energy is no longer “alternate energy”, but will increasingly become a key part of the solution to the nation’s energy needs making a substantial contribution.

Moreover, India has signed various International Agreements to adhere to the norms of Green Energy and climate change, and, therefore, India has international compulsions as well to shift significantly to Renewable sources of energy.

In this context, our study has sincerely made an endeavor to examine the existing Green Energy Scenario in India and have recommended policy initiative for “Green energy Clean energy” as an alternative to fossil fuels and to meet the energy deficit and also as a panacea for the environmental degradation and climate change. During the 12th Five Year Plan (2012-17), a capacity of 30,000 MW of Renewable Energy has been targeted which is around 34% of the total targeted capacity of 88537 MW for all the resources during the period. (NITI AYOG Plan Paper). Union Minister of Power has targeted a capacity of 1 lakh MW from Solar Power alone by end of 2020 ( MOP Document). In order to understand the present scenario, Fuel-wise installed capacity break-up (in MW) AS ON 1.3.2015 is given below -

Technology Hydro Thermal Renewables (RES)

Nuclear Total

Installed Capacity

40,798 1,77,741 *31,692 4,780 2,55,012

*R.E.S. includes Small Hydro, Biomass, Urban & Industrial waste power, solar power, Wind power etc.

7


In this study, efforts have been made to suggest alternate policy initiative to address the issues. The main premise of our study is that the State is the primary player in promoting green energy through its laws, legislations, policies and programs. Hence we would like to analyze the extant laws /Acts/Rules/Guidelines etc on green energy. A scrutiny is be made in respect of existing Central Govt. policies for promotion of Green energy in all forms be it solar, wind, small Hydro-power, bio gas, geo-thermal, tidal etc. The study would also broadly go in to the green energy as a technology- alternative and suggest measures to maximize the use of green energy for all sorts of viable energy needs. Since the ambit of Green Energy is very vast, therefore, the Group had to restrict the scope of the policy initiative to power generation mainly. Hence, the prime focus will be on power generation. We would also be exploring the external linkages and the role of stake holders like the Centre, State, NGOs, Independent Power Producers (IPPs) etc.

The study would also deal with proposed new policy initiatives in the arena of GREEN ENERGY like promotion of grid-interactive renewable power generation projects, promotion of renewable energy initiatives for meeting energy, lighting needs in rural areas, supplementing energy needs in urban areas, supplementing energy needs in industry and commercial establishments, and research, design and development activities at premier national institutions and industries on advancement in Green energy technology and finally encourage development of a robust manufacturing industry in Renewable Energy Sector.

The study would try to find out the effectiveness and feasibility of the use of GREEN ENERGY and role of non-state sectors like NGOs, Households etc., apart from policy initiatives and new legislations in use and promotion of Green Energy for the positive impact it has on the environment, economy and the climate change. We would also suggest that India needs to shift from fossil fuels to other non- conventional energy options, such as solar energy, wind energy, biomass and small hydro power-projects for a sustainable energy development in India. It seems that India will definitely achieve the objective of Green Energy as both Hon’ble Prime Minister Shri Narendra Modiji and Energy Minister Shri Piyush Goyalji are two whole hearted committed Leaders we have in present set up.

8


CHAPTER – 1

GREEN ENERGY: AN INTRODUCTION

1.1 BACKGROUND

Energy is the prime mover of economic growth, and is vital to sustaining a

modern economy and society. Future economic growth significantly depends

on the long-term availability of energy from sources that are affordable,

accessible and secure.

Interest in renewable energy came to the fore during the worldwide energy

crises of the 1970s, when high oil prices highlighted the world's dependence

on fossil fuels. Secure and affordable energy provision is vital for nations'

development, as all industrialization, manufacturing, and building 9

"Affordable, adequate and high-quality 24x7 power to every

home in the country for every industry - small scale, medium scale, for

every shops (small or big) how we can make India diesel-generator free

was the theme of the second conference that we have had after the new

government came in the country. After this two-day conference, I am

doubly convinced that Prime Minister Narendra Modi's vision and his

mission to provide 24x7 power to every Indian will be fulfilled by

2019.”

- Union Power Minister Piyush Goyal said at a media briefing

after the conclusion of the two-day conference of Power, Renewable

Energy and Mines, held at Guwahati on 10th April.2015.


programmes consume vast amounts of energy. Since the oil crisis of the

1970s, and largely as a result of the increased exploration and exploitation of

fossil fuel reserves, the abundant supply of oil and coal across the world

enabled market forces to drive down the price of fuel, and consequently

electricity, to low levels.

However, estimates suggest that approximately half of the world's oil

reserves, and a smaller fraction of coal reserves, have been used in little over

200 years. As demand outpaces supply, however, renewables can play a

major role in bridging the gap.

By way of contrast, fossil fuels such as coal, oil, and gas, although originally

laid down effectively as biomass, take millions of years to form and need to

be regarded as finite, non-renewable resources.

1.2 INTRODUCTION

“In the history of mankind, renewal energies have for a long time been the

primary possibility of generating energy. Industrial Revolution changed the

energy trend all over the world.” (U.S. Environmental Protection Agency).

Green Energy is energy that can be extracted, generated, and/or consumed

without any significant negative impact to the environment. The planet has a

natural capability to recover which means pollution that does not go beyond

that capability can still be termed green.

Green power is a subset of renewable energy and represents those renewable

energy resources and technologies that provide the highest environmental

benefit. The U.S. Environmental Protection Agency defines green power as

10


electricity produced from solar, wind, geothermal, biogas, biomass and low-

impact small hydroelectric sources.

Firstly, Energy is the most important problem of the world, because of two

reasons: First; the sources are limited. Considering the relationship between

the standard of living and the energy usage, the situation is being worse year

by year. Secondly; the processes to convert the fossil fuels are deeply

hazardous for the environment.

Fortunately, the energy flows that occur naturally and repeatedly in the

environment can be harnessed for human benefit. The ultimate sources of

most of this energy are the sun, gravity and earth’s rotation. In renewable

energy literature, the words ”alternative” and “sustainable” are being used to

emphasize the possibility of using sources other than the fossil ones which

will finish never. Whatever they are called, “renewable”, “alternative” and

“sustainable”, these energy systems are planned as the parts of the solution

to the energy problem by substituting the fossil sources with the replenished

ones. Renewable energy is the energy obtained from the continuous or

repetitive currents of energy recurring in the natural environment. To assume

any energy flow as “renewable” it should be replenished at least at the same

rate as it is used. A renewable energy system is an “alternative” one, if it is

11

"Effectively, the provision of energy such that it meets the needs

of the present without compromising the ability of future generations to

meet their own needs. ...Sustainable Energy has two key components:

renewable energy and energy efficiency." – Renewable Energy and

Efficiency Partnership (British Journal, 2013


able to provide some or entire part of the energy needs which is met by the

fossil fuels. Such a system is also sustainable because the energy supply will

sustain continuously, as the sun continues to shine, gravity continue to apply

on the objects and the earth continues to rotate. Fossil fuels, on the other

hand, like coal, petroleum and gas are the conventional ones having no

sustainability.

1.3 THE PROBLEM STATEMENT

Apart from the future supply problems, the environmental impact of sources

of energy based on fossil fuel is rapidly generating great concern as the

impact of increasing levels of “greenhouse gases” like carbon dioxide (CO2)

on the global weather patterns is becoming more apparent. In addition,

unburnt hydrocarbons (fuel) and the products of combustion, such as oxides

of nitrogen and Sulphur, cause far-reaching damage to health and the

environment. Renewable energy is largely available without chemical

processes and hence production of CO2 and other gaseous emissions

involved in renewable energy is negligible as they are only generated during

the manufacturing and installation of the necessary devices. The burning of

biomass, such as wood, does, however, directly produce CO2 as a result of

combustion but the gas is absorbed by new wood as it grows and hence the

net emission is zero, as long as the fuel crop is completely replenished.

In order to meet growing demand of power in the country various sources of

power generation viz. coal, gas, hydro, nuclear and renewable are being

exploited. With the increasing emphasis on reduced carbon emission from

the power sector, low carbon growth strategy is being adopted in the Indian

12


Power Sector, which inter-alia considers emphasis on renewable energy

resources.

1.4 GREEN ENERGY: THE PRESENT SCENARIO AND THE POTENTIAL IN INDIA

The installed capacity of renewable energy (RES) excluding Large Hydro

Power Projects (above) has touched 31692.14MW or around 13% only of

the total potential available in the country (255012.78), as on 1st March

2015. With this, the renewable energy, including large hydroelectricity

(40798.75), constitutes merely around 29% of the overall installed capacity

in India (CEA website).

According to the India Renewable Energy Status Report 2014 released at the

ongoing Green Summit 2014 in Bangalore on Thursday, the total renewable

energy potential from various sources in India is 2,49,188 Mw. The

untapped market potential for overall renewable energy in India is

2,16,918.39 Mw that shows huge growth potential for renewable energy in

India.

The Ministry of New & Renewable Energy (MNRE), Government of India

has set a target of achieving overall renewable energy installed capacity of

41,400 MW by 2017. This creates an opportunity worth $10.51 billion for

the renewable market in India till 2017.

India has the world's fifth-largest electricity generation capacity, which

currently stands at 243 GW. The power sector in India is highly diverse with

varied commercial sources for power generation like coal, natural gas,

hydro, oil and nuclear as well as unconventional sources of energy like solar,

13


wind, bio-gas and agriculture. The demand for power has been growing at a

rapid rate and overtaken the supply, leading to power shortages in spite of

manifold growth in power generation over the years.

Focused efforts will bridge this demand-supply gap by way of policy

reforms, participation from private sector and development of the Ultra

Mega Power Projects (UMPP).

Therefore, the government has to take a tough stance between balancing

economic development and environmental sustainability. One of the primary

challenges for India would be to alter its existing unstainable sources of

energy.

14


CHAPTER -2

GREEN ENERGY: INDIAN SCENARIO

2. 1 THE PRESENT SCENARIO AND THE POTENTIAL IN INDIA

The present installed capacity of renewable energy (RES) excluding Large

Hydro Power Projects (above) has touched 31692.14MW or around 13%

only of the total potential available in the country (255012.78), as on 1st

March 2015. With this, the renewable energy, including large hydro-

electricity (40798.75), constitutes merely around 29% of the overall installed

capacity in India (CEA website).

According to the India Renewable Energy Status Report 2014 released at the

ongoing Green Summit 2014 in Bangalore on Thursday, the total renewable

energy potential from various sources in India is 2,49,188 Mw. The

untapped market potential for overall renewable energy in India is

2,16,918.39 Mw that shows huge growth potential for renewable energy in

India.

The Ministry of New & Renewable Energy (MNRE), Government of India

has set a target of achieving overall renewable energy installed capacity of

41,400 MW by 2017. This creates an opportunity worth $10.51 billion for

the renewable market in India till 2017.

India has the world's fifth-largest electricity generation capacity, which

currently stands at 243 GW. The power sector in India is highly diverse with

varied commercial sources for power generation like coal, natural gas,

15


hydro, oil and nuclear as well as unconventional sources of energy like solar,

wind, bio-gas and agriculture. The demand for power has been growing at a

rapid rate and overtaken the supply, leading to power shortages in spite of

manifold growth in power generation over the years.

Focused efforts will bridge this demand-supply gap by way of policy

reforms, participation from private sector and development of the Ultra

Mega Power Projects (UMPP).

Therefore, the government has to take a tough stance between balancing

economic development and environmental sustainability. One of the primary

challenges for India would be to alter its existing energy mix, which is

dominated by coal, to a larger share of cleaner and sustainable sources of

energy.

2.2 TYPES OF GREEN/ RENEWABLE ENERGY RESOURCES

Some renewable sources of green / renewable energy in our country may be

summarized as under:

16

"The power sector offers tremendous opportunities for investing

companies due to the huge size of the market, growth potential and

returns available on capital. Industrialisation, urbanisation, population

growth, economic growth, improvement in per capita consumption of

electricity, depletion of coal reserve, increasing import of coal, crude oil

and other energy sources and the rising concern over climate change

have put India in a critical position” - Renewable Energy Status Report

2014.


(i) Biogas : Biogas typically refers to a gas produced by the biological

breakdown of organic matter in the absence of oxygen. Biogas originates

from biogenic material and is a type of biofuel. One type of biogas is

produced by anaerobic digestion or fermentation of biodegradable

materials such as biomass, manure or sewage, municipal waste, green

waste and energy crops. This type of biogas comprises primarily methane

and carbon dioxide. The other principal type of biogas is wood gas which

is created by gasification of wood or other biomass. This type of biogas is

comprised primarily of nitrogen, hydrogen, and carbon monoxide, with

trace amounts of methane.

The gases methane, hydrogen and carbon monoxide can be combusted or

oxidized with oxygen. Air contains 21% oxygen. This energy release

allows biogas to be used as a fuel. Biogas can be used as a low-cost fuel in

any country for any heating purpose, such as cooking. It can also be used

in modern waste management facilities where it can be used to run any

type of heat engine, to generate either mechanical or electrical power.

Biogas can be compressed, much like natural gas, and used to power motor

vehicles. Biogas is a renewable fuel, so it qualifies for renewable energy

subsidies in some parts of the world.

(ii) Solar Energy : Solar energy is the light and radiant heat from the Sun that

influences Earth's climate and weather and sustains life. Solar power is the

rate of solar energy at a point in time; it is sometimes used as a synonym

for solar energy or more specifically to refer to electricity generated from

solar radiation. Since ancient times solar energy has been harnessed for

human use through a range of technologies. Solar energy technologies can

17


provide electrical generation by heat engine or photovoltaic means, day

lighting and space heating in passive solar and active solar buildings,

potable water via distillation and disinfection, hot water, space cooling by

absorption or vapor-compression refrigeration, thermal energy for cooking,

and high temperature process heat for industrial purposes. Due to specific

equatorial location, India has a vast potential for Solar Energy.

(iii) Hydropower : Hydropower is the largest source of renewable energy. This

renewable source of energy, as on 1st March, 2015, provides 15% (40798

MW) of the nation's total electricity (255012.78MW) converting flowing

water into usable energy produces hydropower. Most of this water comes

from rivers and is released through turbines to produce energy. Although

this power source does not release pollution, the large Hydro Electric

projects (HEPs) can possibly harm fish and wildlife, displace people, and

alter the quality of water. Better technology is trying to reduce the loss of

aquatic life, but the problem with this technology is that it is highly

expensive and takes a long time to build. HEPs of above 25 MW is being

dealt by Ministry of Power (MOP) and HEPs of less than 25 MW which is

often called Small Hydro Project (SHP) is dealt in in Ministry of New and

Renewable Energy (MNRE).

(iv) Wind Energy : Wind energy is produced when the wind rotates blades

around a hub, which is connected to the main shaft. The main shaft spins a

generator. The size of turbines is determined by how much energy is

needed. Small wind turbines are usually used for homes, farms and

18


ranches. Other ways to use wind energy include grinding grain and

pumping water.

The disadvantages of wind energy are that again, the technology is very

expensive, the machinery is known to be noisy, birds have been killed by

running into the turbines, and the wind might not be present at certain

times throughout the year. Moreover, it is not a firm source of power.

However, the Govt. of Tamil Nadu is extensively generating Wind Energy

in its wind shadow zones.

(v) Tidal Energy : Tides are generated through a combination of forces exerted

by the gravitational pull of the sun and the moon and the rotation of the

earth. The relative motion of the three bodies produces different tidal

cycles which affect the range of the tides. In addition, the tidal range is

increased substantially by local effects such as shelving, funneling,

reflection and resonance. It has limitations for capacity addition due to

inherent reasons.

Energy can be extracted from tides by creating a reservoir or basin behind

a barrage and then passing tidal waters through turbines in the barrage to

generate electricity. Tidal energy is extremely site specific requires mean-

tidal differences greater than 4 metres and also favourable topographical

conditions, such as estuaries or certain types of bays in order to bring

down costs of dams etc.

19


(vi) Geothermal Energy : Geothermal energy is capable of producing about

2,800 Megawatts of energy per year. Geothermal energy is produced from

naturally occurring steam and hot water from under the Earth's surface.

The steam rotates a turbine, which in turn powers an electric generator.

Also, hot water can be used to directly heat buildings. The downside to

geothermal energy is that land sites are very hard to find and extremely

rare. A positive fact is that geothermal energy is very cost effective and

reliable.

2. 3 INDIA’S ENERGY RESPONSE

India faces formidable challenges in meeting its energy needs and in

providing adequate energy of desired quality in various forms in a

sustainable manner and at competitive prices. India needs to sustain an 8%

to 10% economic growth rate, over the next 25 years, if it is to eradicate

poverty and meet its human development goals. To deliver a sustained

growth rate of 8% through 2031-32 and to meet the lifeline energy needs of

all citizens, India needs, at the very least, to increase its primary energy

supply by 3 to 4 times and, its electricity generation capacity/supply by 4 to

5 times of their 2013-14 levels. With 2013- 14 as the base, India’s

commercial energy supply would need to grow from 5.2% to 6.1% per

annum while its total primary energy supply would need to grow at 4.3% to

5.1% annually. By 2031-32 power generation capacity must increase to

nearly 8,00,000 MW from the current capacity of around 2,55,012 MW

inclusive of all captive plants. Meeting the energy challenge is of

fundamental importance to India’s economic growth imperatives and its

efforts to raise its level of human development.

20


2. 4 INDIA'S PUSH FOR RENEWABLE ENERGY

The new government faces pressure both to cut emissions and ramp up

energy access. For now, coal remains king. But India still faces steadfast

international pressure to deliver action on climate change, even as Modi

promises to bolster the energy supply in a country where more than 300

million people lack access to electricity. Growing economies like China and

India, which are set to contribute more than half of the global increase in

carbon emissions in the next 25 years, will play a critical role in any effort to

address climate change.

Shortly after Shri Modi took office in May, one of his party officials made a

sweeping promise: India would develop enough solar power to run at least

one light bulb every home by 2019. The goal is part of a larger push to boost

renewables in India, where energy demand is projected to double over the

next 20 years. But even with a drastic boost of renewable energy, India faces

a formidable challenge in weaning itself from coal, which accounts for 59

percent of its electric capacity. That dependence on fossil fuels is why India

ranks fourth behind China, the United States, and the European Union in

global greenhouse gas emissions.

2. 5 AGGRESSIVE GOALS FOR RENEWABLES

Modi's government has put forth a slew of ambitious renewable energy

goals. The country's minister of power and energy, Piyush Goyal, told a

gathering of wind turbine makers in August that he intended to add 10,000

megawatts of capacity to the sector every year—that's about half of the

country's current total installed capacity.

21


Mr. Goyal also made a statement that the government would go "far beyond"

the previous regime's 2009 goal of installing 20,000 megawatts of solar

energy capacity by 2020. Even the previous regime's target could potentially

power 10 to 15 million households, or the entire Delhi metropolitan area.

Targets and talk aside, much remains to be done in both the wind and solar

sector. Large-scale state-sponsored programs have helped India boost its

solar capacity by a factor of a hundred between 2011 and 2014. But plans for

the world's largest solar power plant, a 4,000-megawatt project in the midst

of the Thar Desert in the west, have stalled over concerns about the risks to

flamingos and other migratory birds.

Modi's government formalized its support for renewables with the annual

budget it released in July, allotting funds for "green energy corridors" that

are meant to address chronic issues with transmitting energy from renewable

sources to market. The budget also funds the development of small solar

parks along canals and solar-powered pumps for farms, among other

sustainability initiatives.

But in some respects, the budget's scale was modest: It allotted funding for

large solar power projects in just 4 of India's 29 states. As per experts in the

field , it is presumed there is a need a ten-fold increase in investment in new

and renewable energy and a long-term plan if we want to put a dent in our

consumption of coal and oil.

Renewables other than hydroelectric—wind, solar, geothermal, and biomass

—currently account for 13 percent of India total electric-generation capacity,

more than twice as high a proportion as in the United States. But in practice

22


they contribute less to the power grid because of a lack of transmission

capacity and a lack of incentives for companies to purchase solar and wind

power.

23


2.6 STILL COMMITTED TO COAL

Despite the multi-pronged effort to boost renewables in India, Energy

minister Piyush Goyal has made it clear that coal will not be going away.

(MOP Report). In a synopsis of his government's first hundred days, he

touted record growth in coal-fired electricity generation in recent months

and set new targets for coal exploration and production. He called the

country's gap in electricity access an "abomination."

Even as India ramps up renewable energy production and distribution

capacity, it needs to ensure that state-owned electricity companies actually

purchase that energy. The state of Tamil Nadu, for example, has about 40

percent of the country's installed capacity for wind power. It's actually less

expensive there than coal power. But state-owned distribution companies

often don't buy much of it for a variety of reasons—including their fear that

the rise and fall of winds, which they lack the ability to forecast well, will

destabilize the grid.

India's government has set out to raise clean energy funds by taxing coal, but

it's not clear that those funds are being used to promote renewable energy

initiatives.

24


CHAPTER- 3

EXISTING INSTITUTIONAL / POLICY FRAMEWORK FOR GREEN ENERGY

3. 1 INSTITUTIONAL MECHANISM

3.1.1 Ministry of New and Renewable Energy (MNRE)

MNRE is the nodal Ministry of the Government of India for all matters

relating to new and renewable energy. The Ministry of New and Renewable

Energy (MNRE) is the administrative ministry for policies and Programme

in this area. The Ministry itself is organized into several divisions dealing

with a set of technologies and applications.

The extension Programme of the Ministry is largely implemented through

State Nodal Agencies. All major States have set up energy agencies

exclusively for non- conventional energy Programme. These agencies, in

turn, mobilize participation of local institutions, non-governmental

organizations (NGOs) and village-level organizations for implementation of

Programme. Concurrently the R&D Programme is sponsored by the

Ministry, mainly in educational institutions, national laboratories and to

some extent, in industries, in public and private sector.

Main Functions of the Ministry of MNRE: -

Policy making & planning.

25


Development and deployment of Alternate Fuels (Hydrogen, bio &

Synthetic) to replace liquid hydrocarbons

3.1.2 Bureau of Energy Efficiency (BEE)

Under the provisions of the Energy Conservation Act 2001 (Refer section

2.5.1), Bureau of Energy Efficiency has been established with effect from

1st March 2002 by merging erstwhile Energy Management Centre of

Ministry of Power. BEE is presently functioning under the administrative

control of the Ministry of Power. BEE’s mission is to develop programs and

strategies on self-regulation and market principles with primary objective to

reduce the energy intensity of the Indian economy. Some key activities that

BEE is pursuing include the development of energy performance labels for

refrigerators, motors, air conditioners, and other mass- produced equipment,

certification of energy managers and auditors, assisting industry in the

benchmarking of their energy use, and energy audits of prominent

government buildings. BEE is also working closely with energy

development agencies at the state level in order to deliver energy

efficiency services including through public-private partnership.

The BEE has powers to direct the designated consumers to abide by energy

consumption norms and to get their energy consumption audited. The BEE

is also empowered to mandate that all appliances carry * ( from one star to 5

stars ) labels indicating their efficiency, that appliance manufacturers abide

by efficiency standards set by BEE, and that energy consumption standards

set by BEE are met by specified industry or building complexes. The power

supply utilities are included in the list of Designated Consumers. At present,

the BEE is following a consensus approach and has not started to use its

26


legal / penal powers. It has also declared that it may start using its legal

authority and powers to mandate actions in future. The BEE website

suggests that the power distribution utilities should have demand-side

management (DSM) cells (to implement the DSM programs). The BEE also

offers training support for the DSM cells set up by the utilities. The BEE

seems to imply utility-sponsored efficiency programs as a energy efficiency

improvement across industry through improved capacity utilization, fine

tuning, and technology up gradation.

3.1.3 Indian Renewable Energy Development Agency Ltd (IREDA)

Indian Renewable Energy Development Agency Limited (IREDA) was established on 11th March, 1987 as a Public limited Government Company under the Companies Act, 1956 and it promotes, develops and extends financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects.

IREDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as Non-Banking Financial Company (NFBC) with Reserve Bank of India (RBI).

IREDA’s mission is “Be a pioneering, participant friendly and competitive institution for financing and promoting self-sustaining investment in energy generation from Renewable Sources, Energy Efficiency and Environmental Technologies for sustainable development.”

IREDA’s Motto is “Energy for Ever.” The main objectives of IREDA are:

To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency.

27


To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects.

To increase IREDA`s share in the renewable energy sector by way of innovative financing.

Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.

To strive to be competitive institution through customer satisfaction.

3.2 REGULATORY FRAMEWORK

3.2.1 Energy Conservation Act, 2001: -

A. The main features of the Energy Conservation Act, 2001 are as under -

With the background of high energy saving potential and its benefits,

bridging the gap between demand and supply, reducing environmental

emissions through energy saving, and to effectively overcome the

barrier, the Government of India has enacted the Energy Conservation

Act- 2001. The Act provides the much-needed legal framework and

institutional arrangement for embarking on an energy efficiency drive.

Under the provisions of the Act, Bureau of Energy Efficiency has

been established with effect from 1st March 2002 by merging

erstwhile Energy Management Centre of Ministry of Power. The

Bureau would be responsible for implementation of policy

programmes and coordination of implementation of energy

conservation activities.

Standards and Labeling ( S& L ): Standards and Labeling (S & L) has

been identified as a key activity for energy efficiency improvement.

28


The S & L program, when in place would ensure that only energy

efficient equipment and appliance would be made available to the

consumers.

S & L includes following provisions-

Evolve minimum energy consumption and performance

standards for notified equipment and appliances

Prohibit manufacture, sale and import of such equipment,

which does not conform to the standards

Introduce a mandatory labeling scheme for notified equipment

appliances to enable consumers to make informed choices

Disseminate information on the benefits to consumers

Designated consumers would comply with norms and standards

of energy consumption as prescribed by the central government.

Certification of Energy Managers and Accreditation of Energy

Auditing Firms

B. Energy Conservation Building Codes: The main provisions of the EC Act

on Energy Conservation Building Codes are:

The BEE would prepare guidelines for Energy Conservation Building

Codes (ECBC);

These would be notified to suit local climate conditions or other

compelling factors by the respective states for commercial buildings

erected after the rules relating to energy conservation building codes

have been notified. In addition, these buildings should have a

connected load of 500 kW or contract demand of 600 kVA and above

and are intended to be used for commercial purposes;

29


Energy audit of specific designated commercial building consumers

would also be prescribed.

3.2.2 Electricity Act, 2003

The Indian Parliament also passed the Electricity Act in 2003. It

consolidated laws related to generation, transmission, distribution, trade and

use of electricity. Among other things, it called for rationalization of

electricity tariffs, creation of a competitive environment, and open access in

transmission and distribution of electricity. The Act also mandated the

creation of regulatory commissions at the central, regional and state levels.

3.2.3 “Integrated Energy Policy-2006”

It was prepared by the then Planning Commission, Government of India to

promote energy efficiency and conservation there was a need to create an

appropriate set of incentives through pricing and other measures. Public

policy can set the pace for such development by offering attractive rewards

and imposing biting penalties.

It was also felt that an enabling institutional framework is essential to

achieve the objectives listed above. Therefore, it was decided that the

Bureau of Energy Efficiency (BEE) should be made an autonomous

statutory body under the Energy Conservation Act and it should be

independent of all the Energy Ministries. It should be funded by the Central

Government.

30


CHAPTER – 4

ALTERNATE POLICY “A POLICY FRAMEWORK FOR ADAPTATION OF GREEN ENERGY AND SUSTAINABLE DEVELOPMENT”

4. 1 ALTERNATIVE POLICY

In the backdrop of the forerunning facts, it is apparently evident that in view

of the energy crisis, demand supply gap, global call for climate change,

inherent limitations of the existing policies, to achieve 8 lakh MW target of

capacity addition in the field of energy sector and to ensure that at least 50%

of the capacity comes from green energy, we are required to take various

policy initiatives on priority basis in India. Our Group has resolved to

recommend some major policy initiatives which have been explained in the

subsequent paragraphs.

4.2 ENHANCEMENT IN TARGET FOR RENEWABLE PURCHASE OBLIGATION (RPO):-

The Renewable Purchase Obligations (RPO) has been the major driving

force in India to promote the renewable energy sector. The State Electricity

Regulatory Commissions (SERCs) have defined their respective RPO

Regulations which may create a favorable and neutral/off-putting effect on

the growth of renewable energy sector. RPOs set by SERCs also differ on a

State to State basis. Renewable Energy Certificate (REC) is issued for

generating renewable energy as an incentive. RECs are exchanged within

the range of a floor price (minimum) and a forbearance (maximum) price

determined by the CERC. The recent price cuts – proportionately higher for 31


solar RECs than for non-solar RECs – are intended to increase the

attractiveness of the REC trading mechanism. On the other hand, the down

pricing may discourage investment in new renewable energy projects.

CERC estimates the impact of RPOs on consumer prices as insignificant.

SERCs are individually responsible for administering punishment in case of

non-compliance with the CERC mandated RPOs. Therefore, most of the

States have set the maximum REC price as penalty fee when their specific

RPO is not achieved. However, there is a little evidence compliance

mechanism is actually not enforced.

At present, the RPO varies between 0% to 4%. However, there is a need to

enhance this limit to 12%. The new Government laid by Shri Narendra

Modi has given a clear indication that the RPO level may be enhanced to

more than 10%. Therefore, it is recommended that the MNRE Ministry

should bring immediate policy amendment to introduce a mandatory

level of at least 10% for RPOs. This will definitely give a boost to the

green energy sector.

4.3 IMPLEMENTATION OF HYDRO POWER PURCHASE OBLIGATION (HPO)

4.3.1 In the backdrop of the limitations of RESs as stated in above, hydropower

comes with inherent feature of catering to fluctuating peak load demands

and has a beneficial role to play in supplying Quality Power. The Quality

Power encompasses hosts of factors i.e. the powers supplied at fairly

constant voltage and constant frequency and which is free from harmonics

having pure sinusoidal wave shape etc. and also free from any fluctuations

etc. Even though, gas stations do have the capability to cater to these kinds

32


of demands, the non-availability of gas and that too at affordable prices

would make them the unlikely choice if given the option.

Though the hydro capacity addition has been taking place in successive

plans / years, the rate of capacity addition from hydro is not in consonance

with thermal capacity addition, thereby the hydro share in the total Installed

Capacity has been declining over the years as shown below:-

t

33


4.3.2 HPO: An important way to boost hydro power in India

In order to improve hydro share in the energy mix, faster rate of capacity

addition needs to be endeavored. The measures required for facilitating

hydro development include:

Expediting environmental /forest clearances,

Better financial package to the hydro developers

Other policy intervention like obligating States for purchase of certain

% age of hydro energy in their energy mix. This may be referred as

Hydro Purchase Obligation (HPO), on the lines of Renewable

Purchase Obligation (RPO).

Government is working separately for expediting E&F clearances and for

providing better financial package for hydro projects. The present proposal

is for devising HPO.

As per the present assessment, the exploitable hydro potential of the country

is of 1, 45,000 MW. Out of this potential , only around 41000 MW ( above

25 MW IC )has been exploited so far, while around 15000 MW is under

34


construction (as on 1.3.2015- CEA Report) and balance 89,000 MW is yet to

be exploited. Thus, there is a lot of potential in Hydro power is yet to be

tapped up.

In view of the above it is proposed that each State may be mandated to have

a certain percentage of hydro energy in the total energy mix of that State.

This methodology will pave way for additional capacity addition at National

level whereby hydro energy could be procured by the States for achieving

the mandated hydro energy share by the end of 13th Plan.

35


4.3.3 Methodology for implementation of HPO

18th EPS indicates State wise energy share at the end of 12 th Plan. The total

energy requirement at the end of 12th Plan (National level) is 1904 BU.

Based on 18th EPS data a capacity addition of 88,537 MW has been planned,

which includes about 12,000 MW from hydro project.

As against 12,000 MW, feasible capacity addition during 12 th Plan is of the

order of 7,251MW.

As 12th Plan is already midway and hydro projects are at various Stages of

construction and any policy intervention at this stage may not alter the

resultant capacity addition during 12th Plan, hence, the present exercise is

proposed to be implemented during 13th Plan with the base %age hydro

energy share at the end of 12th Plan.

Considering State wise actual hydro energy share and realistic hydro

capacity addition of 7251 MW, State wise hydro energy share at the end of

12th Plan (2016-17) has been assessed.

For arriving the incremental hydro energy share at the end of 13th Plan

following criteria have been considered:

Incremental State wise Hydro energy share required (on the base year)

to be added based on the range of Hydro energy share in the total

energy amongst States at the end of 12th Plan. Wherever the existing

%age of hydro share (in total energy) is lesser the higher incremental

hydro energy is proposed.

36


%age addition in hydro energy share over the hydro energy share at

the end of 12th Plan based on the average cost of procurement of

Power w.r.t. average cost at all India level. Wherever the procurement

cost is lower the proposed incremental hydro energy is higher.

Different %age of increase in hydro energy share has been considered

for different ranges of %age peaking requirement of the state (which

is based on load factor). Wherever the peaking requirement is lower

the proposed incremental hydro energy is lower.

To factor in impact of variability in renewable, 20% of renewable

capacity is considered.

4.3.4 Calculation of Hydro Energy %age for HPO :

Based on the criterion mentioned above , State wise incremental % addition

in hydro energy (over and above the hydro energy at the end of 12 th Plan)

during 13th Plan has been arrived at as mentioned below ( source : MOP) :

0.2% to 1.0% -Arunachal Pradesh, Uttrakhand , Meghalaya

1.1% to 1.5% - J&K, Assam

1.9% to 2.0% - Manipur, Orissa, Mizoram, Nagaland, Tripura

2.2% to 2.5% - Haryana, MP, Kerala, Punjab, Chandigarh

3.0% to 3.2% - UP, DNH, Delhi, D&D, Maharashtra, Karnataka,

Bihar, Jharkhand, West Bengal

3.4% to 3.7% - Chhattisgarh, Goa, AP, Pondicherry,

37


4.9% - Gujarat

5.6% -Tamil Nadu

6.0% - Rajasthan

As States of Sikkim and Himachal Pradesh will have 100% of hydro

energy, no increase is proposed.

4.3.5 Implementation mechanism for HPO

For implementing the proposed methodology for increasing hydro energy

share would call for revision in relevant clauses of the Electricity Act,

2003/Tariff Policy Regulations under the EC Act, 2003 which the Ministry

of Power may take up on priority in consultation with States , SERCs CERC

and all stakeholders.

After critical evaluation of all aspects, it may be recommended that there is

a need to introduce HPO as a policy initiative and the HPO limit may be

fixed at around 4% at the initial stage ( for HEPs of above 25 MW IC ),

which may be enhanced gradually in due course. This % will be in addition

to % recommended for RPO for REC. This will definitely give a boost to

the green energy.

4.4 MASSIVE SOLAR MISSION

Renewable energy sources and technologies have potential to provide

solutions to the longstanding energy problems being faced by the developing

countries like India. Solar energy can be an important part of India's plan not

only to add new capacity but also to increase energy security, address

environmental concerns, and lead the massive market for renewable energy. 38


Solar thermal electricity (STE) also known as concentrating solar power

(CSP) are emerging renewable energy technologies and can be developed as

future potential option for electricity generation in India. In this paper,

efforts have been made to summarize the availability, current status,

strategies, perspectives, promotion policies, major achievements and future

potential of solar energy options in India.

4.4.1 India faces the dual challenge of sustaining its rapid economic growth while

dealing with the global threat of climate change. In addition, it needs to

tackle challenges related taxonomic energy security, energy access, and the

local environment. To counter these, a National Action Plan on Climate

Change (NAPCC) was launched in 2008. One of the key missions (out of

eight) formulated under the NAPCC is the Jawaharlal Nehru National Solar

Mission (JNNSM), which was launched in 2010 with the aim of deploying

an installed capacity of 22,000 MW of solar power by 2022 (JNNSM 2010).

The JNNSM was motivated by two major factors. First, to reduce

dependence on fossil fuels and help improve energy security and second, by

the technical potential of solar energy, which is practically unlimited. Most

parts of India receive an average annual global solar radiation of 1,600-2,000

kWh/m2, much higher than many countries that have been successful in

deploying solar energy, such as Germany and Japan (Garud and Purohit

2010). India’s solar potential of 6 billion GWh can be used to generate much

more than the country’s current electricity needs (Garud and Purohit 2010;

CERC 2011).

It has been close to four years since the JNNSM was launched. During this

time, India has seen tremendous growth in solar power deployment – from

39


10 MW in 2009 to more than 2,600 MW by May 2014 (MNRE 2014). Given

that solar power is still more expensive than conventional energy (IRENA

2012a); it is not competitive in the marketplace. Therefore, this growth is

attributed mainly to the state policy of Gujarat and the JNNSM (NRDC

2012a; BTI 2013a) – in particular, to the long-term fixed tariffs guaranteed

by these policies2 (Nelson et al 2012). According to the Ministry of New

and Renewable Energy’s (MNRE) records, the JNNSM had contributed

approximately 640 MW of solar capacity by June 2014.

Based on these numbers it can be hypothesized that the JNNSM has been

effective in deploying solar power in India. Further, it has been asserted that

the JNNSM has been able to deploy solar power in a cost-effective manner,

primarily due to competitive bidding. This has influenced many other States

to come up with their own solar policies based on competitive bidding for

solar power deployment and to fulfil their renewable purchase obligations

(RPOs) (MNRE 2011), in particular solar-specific ones (MOP 2011). Its

targets are to be achieved in three phases – Phase 1 (until 2013); Phase 2

(2013-17); and Phase 3 (2017-22).

Though the JNNSM has contributed to increased deployment of solar power

in India, this does not fully inform us of its effectiveness. The existing

literature indicates that the effectiveness of deployment can be measured in

many different ways, including simple measures such as capacity added, and

complex measures that measure the ratio of capacity added to generation

potential (IEA 2008; IEA 2011)

Phase 1 of the JNNSM was implemented by the National Vidyut Vyapar

Nigam (NVVN), the power trading arm of the National Thermal Power

40


Corporation (NTPC), the largest electricity provider in India. Solar energy is

more expensive than conventional energy (IRENA 2012a), and to reduce the

delivered cost of solar electricity, the NVVN would buy solar energy at the

corresponding levelised cost discovered through reverse bidding, bundle it

20%-80% with energy from traditional power sources (for example, coal),

and sell the bundled energy to customers. With a 20%-80% bundling, which

essentially corresponds to bundling 1 MW of solar power capacity with 1

MW of coal power capacity, for every MW of solar energy, the NVVN

would bundle 4 MW of energy from coal (NRDC 2012a).

The solar tariff was fixed by a pay-as-you-bid scheme where the developers

providing the highest discounts from the Central Electricity Regulatory

Commission (CERC) feed-in tariff benchmark were selected. The most

important contribution of the JNNSM has been providing an impetus to solar

energy – in particular, solar PV – in India, and in a cost-effective manner,

without which no deployment at scale can be justified.

Recently, the Union Minister of Power, Shri Piyush Goel has announced a

very ambitious target of one lakh MW for solar capacity addition. This will

definitely revolutionize the renewable energy sector.

41


CHAPTER-5

ADDITIONAL ASPIRATIONAL RECOMMENDATIONS/GOALS FOR DECENTRALISED RENEWABLE ENERGY APPLICATIONS

5.1 DECENTRALISED SOLAR ENERGY SYSTEMS

The greatest potential area of off grid relates to solar technologies. These

include solar water heating systems, home lighting systems which include

solar lanterns, solar cooking systems, solar pumps, small power generating

systems. Under the Solar Mission, it has been proposed to cover 2 ,000 MW

equivalent off-grid power systems by 2022 which includes all the above,

except solar water heating systems for which there is a separate target of 20

million sq. meters. Within the off grid component, there is a separate target

of covering 20 million rural households with solar lights. This includes both,

coverage under the Remote Village Electrification Programme as well as

through loans given by banks in areas where grid is available to meet unmet

demand. These are very ambitious targets. However, our aspiration goals

would be an additional 2,000 MW in the same period. This would entail

coverage of niche areas like solarisation of telecom towers, large scale use

by industrial establishments in the manufacturing sector where diesel

generating sets have been installed for partly mitigating daytime use of

diesel, increased coverage in areas like Ladakh where diesel is the prime

source of energy generation, etc. This would require support of other

Ministries and industries and more resources.

42


5.2 RURAL ELECTRIFICATION THROUGH RENEWABLE ENERGY

An extension of off grid relates to rural electrification. Over 40% of the

country’s population is currently denied energy access. This has become a

major problem and, inspite of large investments under the RGGVY for rural

transmission, it has been found increasingly difficult to provide this access,

especially in certain identified areas, partly because of continuing supply

constraints. But biomass and Solar PV based solutions are possible. Biomass

based solutions are relatively more viable commercially and can be

implemented with some Government support. The Group would like to

recommend that about 10,000 villages from biomass-based systems and over

1000 villages from solar power up to 2022 should be covered. The latter

will, however, require substantial Government support or financial support

which may come as grants through some fund or the other to meet the initial

capital cost. This would be apart from the target of coverage of 20 million

households to be covered with solar lights. These achievements would make

a huge dent in the critical matter relating to energy access.

5.2 GREEN BUILDINGS

Almost 40% of the total energy is utilized in the building sector. A green

building designed through solar passive concepts and including active

renewable energy systems can save substantial conventional energy apart

from generating energy for meeting various requirements in different

seasons. Keeping in view our climatic conditions, a National Rating System

- GRIHA has been developed which is suitable for all types of buildings in

different climatic zones of the country. It is expected that the Rating system

will promote the design and construction of green buildings in the country.

43


The Group would recommend to pursue promotion of green buildings in a

mission mode and intends to undertake a huge capacity building effort in

this regard. It aspires to have 200 million sq. mtr. GRIHA rated buildings by

2022. This concept is also being promoted for campus developments. It is

hoped that this would have become the norm by then.

5.3 RENEWABLE ENERGY BASED COOKING SYSTEMS

Another important area of off grid relates to rural cooking needs. This

involves the Family Size Biogas Plants Programme as well as covers the

issues of cook stoves, both at the level of the individual households or the

community level. The Group would like to recommend for traditionally

doing about 1 lakh family size biogas plants annually. Cook stoves is a big

problem as either biomass is inefficiently burnt, creating both emissions and

health hazards and substantial higher consumption of firewood as far as

community cook stoves are concerned or the cost of the stove becomes too

high. The Group would like to recommend that a National biomass cook

stove should be launched to address both. A research programme has also

been initiated to identify the right stoves which could be used by

households. At the same time, a pilot project has been launched to test the

efficiency and marketability of improved community cooking stoves. This

pilot project covers governmental institutions like Anganwadi Centres,

schools for midday meals and tribal hostels, etc. apart from private dhabas.

The Group would like to recommend to enable distribution of over 10

million stoves for households with some limited Government support by

2022 which would require additional funds and half a million community

stoves to be installed in market mode. Naturally, the latter would require

44


support of line Ministries including the Ministry of Tribal Affairs,

Department of Women and Child Development and Department of

Elementary Education.

In addition, the Group would like to recommend to cover at least 1000 solar

cooking systems by 2022. All institutions including large institutions with

hostels, hospitals/medical colleges, military/para-military establishments,

industrial organizations – wherever large number of meals is cooked should

be targetted. Many such systems have already been installed and technology

refinements are taking place. Essentially, these reduce the consumption of

cooking gas. Reduction in subsidy on cooking gas would make this target

much easier to achieve. That may also help growth of solar dish cookers for

individual use.

The Group would like to recommend to initiate research into various solar

cooling applications. Aspirational goals would include commercially viable

systems to be developed in the next five years. Thereafter, this could be an

area for upscaling. The group visited an NGO called Akshaya Patra which is

the world’s largest mid-day meal provided to school children. The NGO

was a classic example for use of bio-mass energy for its large kitchen which

caters to around more than 10 lakh meals per day.

45


CHAPTER-6

ROLE OF CENTRAL AND STATE GOVERNMENTS

6.1 The following role of Central and State Governments is envisaged in the

Act.

Central - to notify rules and regulations under various provisions of the

Act, provide initial financial assistance to BEE and EC fund,

Coordinate with various State Governments for notification,

enforcement, penalties and adjudication.

State - to amend energy conservation building codes to suit the regional

and local climatic condition, to designate state level agency to

coordinate, regulate and enforce provisions of the Act and constitute a

State Energy Conservation Fund for promotion of energy efficiency.

NGOs – Theycan play a vital role for development of this sector.

IPPs - Independent Power Producers (IPPs) have the capacity and the

financial strength to develop green energy in India.

*****

46


BIBLIOGRAPHY

1. http://www.mnre.gov.in (Ministry of New and Renewable Energy)2. http://powermin.nic.in (Ministry of Power)3. http://www.bee-india.nic.in/index1.php (Bureau of Energy Efficiency) 4. http://dsm.iea.org (IEA)5. Central Electrification Authority (CEA), (August 2014): 'Monthly Generation

Report (Renewable Energy Sources) 2013-14 (August 14)'. Available online at: (http://www.cea.nic.in/reports/ articles/god/ renewable_energy.pdf)

6. Power and Energy Division, Planning Commission (October 2013): Annual Report 2012 – 13 on The Working of State Power Utilities & Electricity Departments'. Available online at: (http://planningcommission.nic.in/reports/genrep/arep_seb12_1 3.pdf).

7. Central Electricity Regulatory Commission (2014): 'Annual Report 2013-2014. Available online at: (http://www.cercind.gov.in/2014/ Annual_Report/annual_report_2013_14_ENGLISH_new.pdf).

8. S.K.Soonee, MinaxiGarg, SatyaPrakash (2010): 'Renewable Energy Certificate Mechanism in India', Available online at: (http://admis.hp.nic.in/doe/pdf/REC_india.pdf).

9. Ministry of Finance, Department of Expenditure (April 18, 2014): Office Memorandum - Guidelines for appraisal and approval of projects/schemes eligible for financing under the National Clean Energy Fund'. Online available at: (http://finmin.nic.in/ the_ministry/dept_expenditure/plan_finance2/ Guidelines_proj_NCEF.pdf)

10. Ministry of New and Renewal Energy (December 2012): 'Jawaharlal Nehru National Solar Mission – Phase II Policy Document'. Available online at (http://mnre.gov.in/file-manager/UserFiles/ draft-jnnsmpd-2.pdf)

11. Government of India, Ministry of New and Renewable Energy (February 2011); 'Strategic Plan for New and Renewable Energy Sector for the Period 2011-2017'. Available Online at: (http://mnre.gov.in/file-manager/UserFiles/ strategic_plan_mnre_2011_17.pdf)

******

47

http://admis.hp.nic.in/doe/pdf/REC_india.pdf

http://planningcommission.nic.in/reports/genrep/arep_seb12_1%203.pdf

http://planningcommission.nic.in/reports/genrep/arep_seb12_1%203.pdf

http://dsm.iea.org/

http://www.bee-india.nic.in/index1.php

http://powermin.nic.in/

manjit singh.docx

Documents

Transcript of manjit singh.docx