Encouraging Policies for Renewables
It is becoming increasingly important to channelize the energy resources in the right direction to optimize the efficiency in a cost effective manner. At this point, exploring alternative sources of energy like renewable energy appears dependable. The Bureau of Energy Efficiency (BEE) plays an important role in the development of renewable energy.
The Energy Conservation Act, 1991 provides the legal framework, institutional arrangement and a regulatory mechanism at the central and state level to embark upon an energy efficiency drive in the country. The energy conservation act empowers the BEE to appoint energy auditors and energy managers to assist consumers, designated agencies to achieve efficient use of energy by means of energy cost optimization, pollution control, safety aspects, suggests the methods to improve the operating and maintenance practices of equipments etc.
The term renewable energy or non conventional energy includes energy from solar, biomass, fuel wood, crop residue, dung, biogas, wood gasifier, wind, wave, tidal and hydro. The attempt here is to explain the renewable energy initiative from a legal perspective as well as the fiscal incentives or subsidies available and the scope for foreign investments.
Central policies
Under the Electricity Act 2003, the state electricity regulatory commissions have been empowered inter-alia to promote cogeneration and generation of electricity from renewables. One of the principal issues that the national electricity policy 2005 seeks to address is co-generation from non-conventional sources. The emphasis is on research, development and commercialization of non-conventional energy. The Policy further states that non-conventional sources of energy could be used for purposes of rural electrification.
Prior to the formulation of the 11th five year plan, the Planning Commission had formed an expert committee to look into various issues relating to energy. Pursuant thereto, the committee headed by Dr Kirit S Parekh had prepared a report titled ‘The Integrated Energy Policy’ in 2006.
The policy recommendations:
• Village Panchayats to decide on the renewable energy source to electrify villages
• Publication of an annual renewable energy report on performance of different renewable technologies at state and national levels
• Setting up of venture capital funds to finance entrepreneurs in the energy sector
• Carving out commission for additional sources of energy (CASE) from the ministry of non-conventional energy and making it responsible for overall development of renewable energy programmes
• Convert Indian Renewable Energy Development Agency (IREDA) into a refinancing institution.
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State policies
Several state regulatory electricity commissions such as Gujarat, Kerala, Tamil Nadu have formulated policies on utilization of renewable sources. For example, Gujarat state’s power procurement from renewable sources regulations 2005, Kerala state’s power procurement from renewable sources by distribution licensee regulations 2006, The power procurement from new and renewable sources of energy regulations 2008. The said regulations primarily deal with sale of power from renewable sources and determination of tariff.
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Sir ,
In our thermal plant we are taking water from dam to cool the steam in condenser for which we have made an agreement with the irregation department.
Now we installed 2×850 kw mini hydel power generating unit in the return canal of condenser cooling water of 4 x 210 MW thermal power plant .
As we are not using any other additional water to run the mini hydel plant , but irrigation department wants to make an agreement for this and claiming water charges for this.
Can State governments provides subsidies and incentives to encourage in renewable and non-conventional sources of energy generation like concessions or exemptions from water chrges etc.
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