re-6-10

The Electricity Act 2003 provides the overall framework for promoting and
sustaining the growth of renewable energy sources in India. It contains several

provisions to promote the accelerated development of power generation from
non- conventional sources, such as directives to the central and state regulator
to determine tariffs for renewable energy sources and to set renewable purchase
obligations (RPOs) as a percentage of total electricity consumption in the area
of a distribution licensee. It also provides that the State Electricity Regulatory
Commission (SERC) would promote the generation and co-generation of electricity
for renewable sources through suitable measures for connectivity with the grid.
Select states with RPOs and FIT
State FIT RPO

Andhra Pradesh √ √
Gujarat √ √
Haryana √ √
Karnataka √ √
Kerala √ √
Madhya Pradesh √ √
Maharashtra √ √
Orissa √ √
Rajasthan √ √
Tamil Nadu √ √
Uttar Pradesh √ √
West Bengal √ √
Note: States have promulgated FITs as per the renewable resource available in the state and not
necessarily for all renewable energy sources.
Source: State Electricity Regulatory Commissions’ websites
Sustained measures by the government and regulators and public awareness-

generation campaigns have increased awareness around the benefits of renewable
energy. The Government of India (GoI) has set a target of installing 15% of
additional power generation capacity in the country through grid-interactive
renewable power by 2012. Around 15,000 MW of power is expected to be
generated from renewable sources in the Eleventh Plan period for this purpose. By
2030, the target is to generate 20–30% of power from renewable sources.
3 Renewable energy The next wave

Growth dynamics in the sector
Renewable energy: achievements as on 31 July 2009

No. Sources/Systems Cumulative achievements
I. Power from renewable sources
A. Grid-interactive renewable power
1 Biomass power (agro residues) 773.30 MW
2 Wind Power 10464.00 MW
3 Small hydro power (up to 25 MW) 2461.00 MW
4 Cogeneration-bagasse 1155.00 MW
5 Waste to energy 59.00 MW
6 Solar power 2.00 MW
Sub-total (in MW) (A) 14914.00 MW
B. Off-grid/distributed renewable power (including captive/combined heat and
power [CHP] plants)
7 Biomass power/co-generated 175.78 MW
(non-bagasse)
8 Biomass gasifier 107.02 MWeq
9 Waste-to- energy 34.06 MWeq
10 Solar PV power plants and street lights 5.00 MWp
11 Aero-generators/Hybrid systems 0.89 MW
Sub-total (B) 322.75 MWeq
Total ( A + B ) 15,236.75 MW
II. Remote village electrification 4,297 villages + 1,156 hamlets
III. Decentralized energy systems
12 Family-type biogas plants 4.12 million
13 Home lighting system 4,50,000
14 Solar lantern 7,30,000.
15 SPV pumps 7,148 nos.
16 Solar water heating: Collector area 2.90 million sq.m.
17 Solar cookers 0.65 million
18 Wind pumps 1,347
IV. Other programs
19 Energy parks 511
20 Akshay Urja shops 284
MWeq. = Megawatt equivalent; MWp = Megawatt peak; MW = Megawatt;
kW = kilowatt; kWp = kilowatt peak; sq. m. = square meter
Sources: Ministry of Power, MNRE and CEA
Renewable energy The next wave 4

Wind energy
Among the different sources of renewable energy, wind energy is the undisputed
market leader in India, accounting for nearly 70% of total grid-interactive
renewable capacity in the country. With an installed capacity of 10,464 MW,
India has the fifth-largest wind power-installed capacity in the world after the US,
Germany, Spain and China.
Initially, growth in wind energy generation was largely attributed to the
provision of accelerated depreciation. However, last year, the MNRE launched
the generation-based incentive (GBI) scheme to provide a level playing field for
entities such as independent power producers (IPPs) who may not be able to fully
absorb the benefits of such a provision . The scheme offers a GBI of INR0.50 per
kWh of electricity generated, for a period of 10 years for grid-connected wind
farms that do not avail the benefits of accelerated depreciation. However, the
scheme is currently at a pilot stage, and there is a program limit of 49 MW
in aggregate.
Rising wind power generation capacity
12,000 10,464
10,000
8,754
8,000
In MW
7,090
6,000 5,341
4,000 3,594
2,000
0
FY05 FY06 FY07 FY08 FY09*
*Note: Generation capacity as on 31 July 2009

Sources: MNRE and Indian Wind Energy Association
► Import duty concession on specified wind turbine parts

► 80% accelerated depreciation
Central
► Customs and excise duty relief
sector ► Loans through IREDA
► Tax holiday for power generation projects
► Fiscal and financial incentives

► Wheeling, banking, third party sale, buy-back facility by
State Electricity Boards (SEBs)
State ► Capital subsidies and sales tax incentives in certain states
sector ► Soft loans from the Indian Renewable Energy Development
Agency Ltd. (IREDA)
► FIT and RPO of respective states

Factors that may impede growth
There are several issues that may impede the growth of the wind power
generation sector. These include the following:
Costs and perfromance Investment skew Policiy and Technology and land
investment issues
► Wind power projects on a ► A large portion of wind ► The GBI cap of 49 MW is ► The unique nature of the
turnkey basis cost capacity addition in India too small push IPP acitivy in wind industry in India with
INR 55-60 million/MW. is geared towards wind to a meaningful level. the project developer, EPC
This is significantly higher maximising the fiscal vendor and O&M all being
► The recent Regulatory
than that of conventional incentive of accelerated provided by a single entity
guidelines on sharing of
energy plants. depreciation. This leads is likey to undegro a
environmental credit
to bunching up of new significant change in the
► The average PLF of these benfits with the utility
capacity additions and future with the entry of
plants at around 15% is further reduce the
strains the Discom new pure EPC players
low compared to attractiveness of the sector.
resources in providing offerring WTGs of
international numbers
the evacuation infrastructre vaying capacities.
and is a deterrrent for
IPP activity in the sector. ► This poses significant
challenegs of land
acquisition and technology
selection for deveopers
propsing to set up
new WEG's.
Sustaining the growth momentum in wind-energy generation would, therefore,

require renewed efforts at resource assessment, identifying new avenues for
growth such as offshore wind and facilitating the entry of multiple wind energy
equipment suppliers in the country. Such initiatives could help reduce overall
costs and improve efficiency in wind generation.
Solar energy
Solar energy is an attractive prospect for India, as the country receives solar
radiation of 5 to 7 kWh/m² for 300 to 330 days in a year. This translates to a
power generation potential of approximately 20 MW/km² for solar photovoltaic
(SPV) applications and 35 MW/km² for solar thermal generation. This implies that
India receives solar energy equivalent to nearly 5,000 trillion kWh/year, which, in
turn, is equivalent to 600 GW. This far exceeds the country’s current
energy consumption.
India ranks fifth in SPV installations and ninth in solar thermal application
installations in the world. India has 10–12 manufacturers producing around
100 MW of SPV cells and approximately 20 manufacturers with a total installed
Renewable energy The next wave 6

capacity of 120 MW in module manufacturing. India also has a large number
of integrators-cum-service providers (around 80), with a total capacity of
approximately 245 MW.
KWh/sq.m
6.6–6.4
6.4–6.2
6.2–6.0
6.0–5.8
5.8–5.6
5.6–5.4
5.4–5.2
5.2–5.0
5.0–4.8
4.8–4.6
4.6–4.4
Sources: TERI Presentation, ASSOCHAM South Asia Renewable Energy Conference, New Delhi
According to estimates by TERI, 492 x 10^6 MU/year electricity can be

generated if 1% of land is used to harness solar energy for electricity generation
at an overall efficiency of 10% However, despite the potential and presence
of solar manufacturing capacity in India, the progress has been slow. This is
largely on account of the extremely high capital cost of around INR170 m/MW.
Consequently, the cost of generation, at around INR15 per kWh is manifold when
compared to the cost of generating INR2–3/units from conventional sources.
The GoI has been cognizant of this concern, and as such, is making efforts
to reduce the capital through economies of scale in production and market
simulation measures. These include initiatives such as the GBI scheme, the Special
Incentive Package Scheme (SIPS) and the National Solar Mission, which is being
further supplemented with state-level measures such as the Solar Energy Policy
in Gujarat.

re-6-10

Uploaded by

Copyright:

Available Formats

re-6-10

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

re-6-10

Uploaded by

Copyright:

Available Formats

The Electricity Act 2003 provides the overall framework for promoting and

sustaining the growth of renewable energy sources in India. It contains several

Select states with RPOs and FIT

State FIT RPO

Source: State Electricity Regulatory Commissions’ websites

Sustained measures by the government and regulators and public awareness-

3 Renewable energy The next wave

Renewable energy: achievements as on 31 July 2009

Sources: Ministry of Power, MNRE and CEA

Renewable energy The next wave 4

*Note: Generation capacity as on 31 July 2009

► Import duty concession on speciﬁed wind turbine parts

► Fiscal and ﬁnancial incentives

5 Renewable energy The next wave

Sustaining the growth momentum in wind-energy generation would, therefore,

Renewable energy The next wave 6

According to estimates by TERI, 492 x 10^6 MU/year electricity can be

7 Renewable energy The next wave

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.