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November 2014
Guidelines
for
A Model Renewable Energy Policy in Indian States
• Email: [email protected]
• Website: www.climateparl.net
• Contact: [email protected]
This report is prepared by Climate Parliament India and South Asia team led by
Sumedha Basu, with Deepak Kumar Rai and Niharika Krishna.
Mr Deepak Gupta Former Secretary, MNRE and Prof Amit Kumar, TERI
University have reviewed the report and have given their detailed comments and
suggestions. We thankfully acknowledge their support. We value immensely the
suggestions provided by the Climate Parliament network of Legislators who
initiated and supported the need to undertake such a study.
While every effort has been made for the correctness of data/information used in this report,
neither the authors nor Climate Parliament accept any legal liability for the accuracy or
inferences for the material contained in this report and for any consequences arising from the
use of this material.
Climate Parliament is an international cross-party network of
legislators, dedicated to preventing climate change and promoting
renewable energy. The organisation provides support to legislators in
taking political, legislative, policy, and budgetary initiatives to promote
solar, wind, small hydro, biomass, geothermal, and other forms of
renewable energy. Climate Parliament has been supporting legislators
in their work on renewable energy for over five years, and has
established a network of legislators from across Asia, Africa and
Europe.
Guidelines for A Model Renewable Energy Policy in Indian States
Contents
1. Preamble/Background: ...................................................................................................................... 3
2. Vision: ................................................................................................................................................ 3
3. Title and enforcement: ...................................................................................................................... 4
4. Operative and review period: ............................................................................................................ 4
5. Objectives: ......................................................................................................................................... 4
6. Scope of the policy: ........................................................................................................................... 4
7. State Nodal Agency: .......................................................................................................................... 6
8. Targets/Goals: ................................................................................................................................... 7
9. Sectoral focus: .................................................................................................................................... 9
10. Technology Focus: Strategy and Roadmap: ........................................................................................ 9
11. Eligible Producers: ............................................................................................................................ 10
12. Rural Energy Supply: Special Focus .................................................................................................. 10
13. Incentives for State RE Sector: ......................................................................................................... 12
14. Infrastructure: .................................................................................................................................. 13
14. 1. Grid Access and interconnectivity .............................................................................................. 13
14.2. Grid Stability: ............................................................................................................................... 14
14.3. Land availability for renewable energy projects: ......................................................................... 14
15. Regulatory framework: ..................................................................................................................... 15
15.1 Feed in tariffs (FITs): ..................................................................................................................... 15
15.2. Renewable Purchase Obligation (RPO): ...................................................................................... 15
15.3. Net metering: .............................................................................................................................. 16
15.4. Open access, Wheeling and Banking: .......................................................................................... 16
15.5. Single window clearance: ............................................................................................................ 16
16. Mobilising project finance for renewable energy projects ............................................................... 17
17. Renewable energy manufacturing, R&D and skill development: ..................................................... 18
17. 1. Manufacturing capacity and base: ............................................................................................. 18
17. 2. R&D/ Indigenous technology/ Schemes for R&D promotion: .................................................... 18
17.3. Human resource development and capacity building: ................................................................ 19
Annexure 1: .............................................................................................................................................. 20
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Introduction to Guidelines for a Model Renewable Energy Policy
This document consists of Guidelines, to lay the grounds towards the preparation of a Model Comprehensive Renewable Energy (RE) Policy in Indian states. The Guidelines provide an overall policy framework to support State Government and other agencies to formulate long-term and comprehensive State Renewable Energy Policy. The Guidelines have a dual objective: to connect with the national-level renewal energy aspirations and to combine with the state-level specific needs and situations. The Guidelines consist of the policy objectives, key pointers and alternatives to develop the RE sector in a state. This document fills the present serious gap of the absence of any such model guidelines or standards for the states to form their renewable energy related policies. The Guidelines will give the States a uniform set of principles/approach in formulation of their State Renewable Energy policy.
The sections below consist of a suggested list of components for a Comprehensive Renewable Energy Policy at state level. Each section describes a suggested approach to be followed for dealing with a specific topic and also includes a prescriptive list of actions.
1. Preamble/ Background:
This section needs tocapture the context and adequately address the need for a Renewable Energy (RE) Policy in the state. The section should be reflective of the current scenario energy scenario of the state. It can include information on the following:
• Present and likely energy demand and supply status of the state focussing on both urban and rural areas
• Energy security and gaps in energy access
• Electricity Tariff – both urban and rural
• Financial health of the DISCOMs
• Infrastructure for transmission and distribution (including issues like losses, theft, etc.) Availability of renewable energy resources and driving factors for promoting renewable energy utilisation.
Details on other relevant factors can be added in this section for providing a context. Some modifications may be made to address state specific conditions and attributes as applicable. Trends and statisticsrelated to electricity/energy consumption, supply and demand etc. can be provided to substantiate the claims made in this section.
2. Vision:
Approach: The objective of a carefully drafted vision statement is to provide the stakeholders of the energy sector with a long term visibility of the Government’sintentions and commitment towards renewable energy developmentand plans for implementing it.Normally it would be a short statement that provides the context for the specific objectives and policy actions. It should particularly enthuse investors to be able to get a level, stable and conducive playing field for coming years. A vision statement should be aligned with the national aspirations (e.g. long term national targets); at the same time it needs to keep the long term growth needs of the state in focus as well as its current ground situation.A visibility for at least the next ten years should be provided through the Vision Statement.
Actions: State Governments can formulate their vision statement based on the above considerations. Some examples of vision statements with different long term objectives have been enlisted below:
a. To become the leading state in India in terms renewable energy installed capacity and utilisation by 2025.
b. To become the most preferred state for national and international renewable energy investments in India
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c. To completely eradicate energy poverty and deficit through optimal utilization of renewable energy sources in the statewhile ensuring long term, affordable, inclusive and equitable energy supply for its citizen.
3. Title and enforcement:
This policy shall be known as the State Renewable Energy Policy ‘Year’ and will be enforced from the date of its notification in the official gazette of the State Government.
4. Operative and review period:
Clarity on the validity period of the policy should be stated upfront. Typically, State Governments should publish/review such a policy once in five years (co-terminus with the state Five-Year Plans and shall undertake a review of this policy as and when required) in due consultation with all stakeholders and State Government departments.
5. Objectives:
Approach: The objectives of the policy will essentially breakdown the overarching Vision statement into specific points. The objectives should clearly point out the specific aspects that the policy would like to focus on for the next five yearsin order to reach the ‘Vision’ highlighted in the earlier segment. Both short and long term measures to achieve the ‘Vision’ needs to be captured.
Actions:Depending on the ‘Vision’ detailed out above, objectives in a policy can be detailed out in the following manner:
a. To accelerateboth grid connected and off grid renewable energy utilization including for non-electric applications in the state to achieve its development goals, renewable energy potential and national targets in all energy intensive sectors.
b. To foster an attractive investment environment in the Statethroughensuring attractive returns, streamlined administrative and institutional processes and dedicated support infrastructure.
c. To ensure equity, affordability and availability of energy to all sections of the residents through effective pricing mechanism and financing policies.
d. To integrate renewable energy with overall energy sector planning of the state while charting out an energy mix that incorporates long term state RE targets
e. To formulate schemes with yearly targets for the deployment of various technologies/devices supported with suitable project implementation strategies.
6. Scope of the policy:
Approach: An RE policy must focus on grid connected/off grid electricity generation and non-electric applications through various RE technologies. Generally, RE policies have scope defined in terms of various technologies. This is important as the policy should focus on utilising resources that are available in the state. However, it is imperativethat the overall approach of setting the scope of the policyshall be more comprehensive in nature.Therefore, the state REpolicy shouldnot only cater to technology options but also the sectors where renewable energy projects can be implemented. It is also good to identify the beneficiariesthat the policy is expected to cover as the specific strategies will vary accordingly.
In the long term, it is desirable that private sector leadsthe renewable energy industry attaining self-sustenance. Therefore, planning for a policy for any such sector needs to aim to develop the entiresectoral ecosystem. The Policy will alsoneed to address the implementation processes intently. The policies should clearly mention the yearly RE technology-wise targets for capacity addition, strategies for project implementation, and roles and responsibilities of agencies involved in execution.
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Actions: The policy should specify that it will be applicable to energy generation and supply from renewable energy sources across all sectors in the following manner:
“This Policy shall be applicable to all the renewable energy projects sanctioned prior to the commencement of this Policy and those in the process of development, including the projects already commissioned. This Policy shall include the following RE technologies: solar (PV and thermal), wind, biomass gasification and cogeneration, small hydro, municipal solid waste (MSW) andother applicable technologies (as the Government may consider appropriate).”
Specifically, the focus of the policy can be put on the following:
a. Grid connected power projects: Development of grid-connected utility scale RE projects with the help of both public and private sector participation.
i. State Allocated projects
ii. Centrally allocated projects
iii. Open access projects
A standard policy for RE promotion in states for utility or MW scale grid connected projects shall be guided by the following factors:
• Overall energy supply and demand status of the state;
• Both public and private sector participation in MW scale RE generation. Particularly for infirm power wherever possible.
• Allotment of adequate and useful land and creation of land banks for setting up large scale renewable energy projects.
• Utilization of wasteland/barren land available in the state for setting up solar/biomass power projects.
• Providing RE projects with a “deemed industry status” for availing various incentives under the State’s Industrial Policy
• Appropriate mechanism for power evacuation.
• Mandatory purchase of electricity from RE power projects by electricity utilities and its compliance (as per RPO regulation notified by the SERC).
The state policy shall assist and encourage development of different types of grid-connected RE projects (Refer Annexure 4) along with other new RE technologies as may be approved by MNRE from time-to-time.
b. Decentralised RE power projects:One the biggest advantages of renewable energy systems lies in their decentralised applications. In a large country with limited grid infrastructure, high T&D losses and ever growing demand, utilisation of renewable energy sources right at the source of demand can be a boon. Decentralised application can address both issues of energy poverty in rural areas and demand side management of energy in urban localities. This will prove to be a reliable and cost effective solution to meet the local demand of electricity. In addition, it can save the expenses on the capacity addition of generating station as well as extension of transmission and distribution network. Therefore, appropriate initiatives must be taken and strategies need to be put in place to enable large-scale deployment of DRES in the state to address the challenges of both energy security and energy access.
Implementation plan for DRES schemes with yearly targets for the deployment of various technologies/devices, supported with suitable project implementation strategies shouldbe included.
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The roles of various stakeholders including the channel partner/manufacturer/other suppliers/service provider/end user and financial institutions/cooperative rural societies at each stage of the project implementation should be clearly defined. Monitoring and standards development for DRES also should fall into the scope of this policy/plan.
i. Decentralized Distributed Generation (DDG) projects based on renewable energy sources including stand-alone systems and micro/mini decentralised grids.
ii. Rural Electrification and Energy Supply projects
iii. Urban captive and grid interactive projects
iv. Cross sectoral energy demand mitigation through RE
v. Industrial thermal energy applications
c. Other cross cutting areas
i. State specific resource map and data
ii. Supply chain development
iii. Monitoring mechanisms
iv. Single window clearances including land allocation
v. Financing needs and channels
vi. Grid infrastructure
7. State Nodal Agency:
Approach: Every state has established a State Nodal Agency(SNA) responsible to implement renewable energy and energy efficiency projects in the state in co-ordination with the respective central ministries. The policy should clearly identify these SNAs as the institution responsible to implement the State renewable energy policy. Clear co-ordination mechanism with not only the Central institutions but also with state energy and other departments needs to be specified. The policy should provide enough strength and capacity to these SNAs so that they are able to negotiate the deliverables of the policy with other departments.Usually SNAs function under the Energy Department or other related departments like Science and Technology in different states. Improving the overall profile of these SNAsat all levelsincluding their financial independence by allowing them to raise their own resources, is crucial to implement the RE policy and subsequent projects in the state.
Action: The policy should clearly specify that theSNA for RE developmentshall be the decision making body for facilitating and implementing this policy. The following functions can be attributed to SNAs:
a. The nodal agency shall advise the State Electricity Regulatory Commission (SERC) to notify relevant regulations, in alignment with this policy, and engage withthe DISCOMS, public sector, private investors and other stakeholders to invest in renewable energy.
b. The SNA shall undertake a comprehensive renewable energy resource assessment supported with relevant demand and supply analysis to estimate the technical and economic potential for utilising renewable energy in the state.
c. The SNA shall also facilitate the capacity building of all relevant stakeholders within the state including discomsand ensure that they can plan, design and implement both off grid projects and grid connected projects in the state.
d. SNAs will be single point of communication and co-ordination for all activities related to renewable energy. It will establish clear channels of communication with MNRE, MoP, state energy department, state DISCOMs and other departments.
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e. The SNAs shall set upsingle window clearance mechanism (see Section 15.5) which will involve land, forestand other statutory clearances and other procedures like leasing and allocation of land for RE projects, development of solar parks, disbursement of subsidy from the Central Government, etc that may deal with RE development in the state.
f. The SNAs should also work towards devising mechanisms or programmes through which they can raise their own financial resources.
8. Targets/Goals:
Approach: Policies become redundant without well defined, focussed and time based targets.Target setting needs to be a careful exercise not only because of the expectations it sets for the market but also for the cost burden that the state will have to bear to achieve the target. Infrastructure and related planning will essentially ensue from the targets that are set under this policy. Since target setting is an exercise very specific to state conditions, this section only prescribes the approach and principles for the same.Also, the traditional approach to look at large capacity installations as the only success parameter needs to be modified to look at the overall contribution of the RE systems to the energy supplied and conventional electricity replaced, up-gradation in the quality of energy supply and socio-economic situations.In general the targets should be ambitious & realistic and be revised at regular intervals with changing conditions in the state.
Following principles will need to be considered while setting of goals or targets in a state renewable energy policy:
a. Long term: A long term target helps in providing long term stability to the overall sector in general. However, in order to be able to measure the progress of the policy provisions, a yearwise break-up of the targets and goals is also equally important. In addition to capacity installation targets, timeline for establishing the peripheral processes including transmission systems is equally critical for the industry. A minimum of ten year period may be considered for setting the long term target.Long term targets can be aligned with the national goals (e.g. 100 GW of solar and wind by 2022 or 15% or RE in the Indian energy mix by 2020 as per NAPCC or energy access goals). Targets focusing on five year plan periods can also be included in the policy.
b. Single target for RE in the state: A state renewable energy policy should lead and shape any initiatives in the field of renewable energy in the state. Through this policy, a singular target indicated in the policy should form the basis for all other RE sub-technologies, sectors and initiatives. On the other hand, the approach to form the target needs to be complex taking into account various factors stated below:
1. Alignment with national policies/targets/ regulations/plans:
i. Renewable Energy Procurement Obligation (RPO): The section 86 1 (e) of the Electricity Act 2003, stipulates State Electricity Regulatory Commissions to “specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee”. Individual SERCs set these targets for obligated entities like distribution licensees, captive consumers, in each state. These RPO percentages need to be thefirst basis for setting state level RE targets. With a poor RPO compliance historyofmost state DISCOMS, this approach may initiate top level planning for meeting RPO targets for the state. (Other aspects of RPOs have been discussed in 15.2)
ii. National Action Plan for Climate Change (NAPCC): The NAPCC was released in 2008 by the then Prime Minister Dr.Manmohan Singh to tackle the challenges related to climate change mitigation in India. This policy recommends “Indian States should follow a dynamic
BOX 1: SMART targets:
1. Specific (well-defined, focused, detailed and concrete)
2. Measurable (kWh, time, money, %, etc.)
3. Achievable (feasible, actionable)
4. Realistic (in the context of the resources that can be made available)
5. Time-Bound (defined deadline or schedule)
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Renewable Energy Procurement Obligation (RPO) mechanism where in share of RE in the electricity procured be set at 5% in the year 2009/10 and an increase of 1% every year can be targeted upto 2019/20”. This was the first policythat attempted to give a long term trajectory to RPOs and hence the sector in general. As there is no legal provision for the number of years for which RPO should be fixed, there are no uniformities in the RPO targets fixed the different SERCS. To fill this gap, State Governments can play a proactive role by following this trajectory for setting long term targets for the state.
iii. Tariff Policy 2006 for Solar Energy Procurement Obligation: An amendment in the National Tariff Policy 2006 in the year 2011 required the State Electricity Regulators to fix a percentage of energy purchase from solar power under the RPOs. “The solar power purchase obligation for States may start with 0.25% in Phase I (by 2013) and go up to 3% by 2022”. Although, this trajectory as per the Tariff Policy is technology specific, it will have a direct bearing on the aggregated target by the State. This becomes an important aspect to keep an account of in setting the cumulative RE target for the state as this will also significantly change the technology wise composition of the overall target. Therefore, careful planning needs to be carried out for this.
iv. Electricity Act 2003 and Tariff policy 2006 for rural electrification: Rural electrification is a critical problem that still exists in most states. Despite achieving the national rural electrification levels above 90%, over 75 million households or 400 million people in the country still lack access to electricity. Renewable energy has been long considered as a useful tool for rural electrification, especially in context of the long execution time and high cost of extending grid to all parts of the state. Section6of the EA 2003 provides that “the concerned State Government and the Central Government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households”. The National Electricity Policy 2005 and the Rural Electrification Policy2006 both have set a goal of “Minimum lifeline consumption of 1 kWh per household per day as a merit good by year 2012”. While setting renewable energy targets for the state, it is important to take stock of the rural electrification levels in each state and also consider the national policy and legislation on the same. The targets need to converge with the development challenges in the state.
2. State Action Plan on Climate Change (SAPCC): The Ministry of Environment and Forests (MoEF) has asked all states to develop action plans to define how they intend to undertake activities and programmes aimed at climate change adaptation and mitigation. These SAPCC should be in line with the objectives NAPCC and ensure its implementation at state level. Renewable Energy becomes an important part of the mitigation plans and several strategies are recommended in the plans approved by the State Governments.
3. Resource availability: As the RPO set by the SERCs does take into account the resource availability in a state, the targets being set by State Government shall also need to keep the resource availability as a reference for setting the state RE targets. RE resource potential is yet to be locally mapped or verified in a number of states. Resource mapping is a necessary intervention that needs to be prescribed by this policy as it has a direct bearing on the vision, targets and direction of any potential state RE policy.
4. State Development and Economic plans: It is of utmost importance that the renewable energy policy and especially its targets are seamlessly integrated with the State Government’s overall plans for the growth, development and economic plans. This will not only help in reaping the co-benefits of renewable energy across sectors but also helpin actualimplementation of the targets through multiple government agencies.
5. Condition and financial capacity of utilities in the state: The utilities in the state should also be able to support the RE targets envisaged in the policy. The state in coordination with the Centre will need to work towards the capacity building of utilities including their strengthening and increasing their RE purchasing capacity.
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Actions: The Policy should give an account of the existing status of RE and the overall aspirations of the State Government in terms of the contribution of RE in the state energy mix at the end of the policy timeline.A long term (on a ten year timeframe) target in terms of capacity installed and energy supplied should be announced in the policy. Alongside, a breakup of the technology specific year wise target for at least the next five years should be charted out to give a clear visibility of Government’s plans and enable annual monitoring on the progress.
9. Sectoral focus:
Approach: Reflecting a top down methodology; after the initial target setting exercise, deployment of these targets in chosen sectors will be central to achieving the right impact. The strategy to fulfil this need is to be more forthright and qualitative in nature. The potential guiding principles, identified below, need to be applied based on the ground conditions and priorities set by the Government:
a) Support the state power installed capacity through large scale grid connected power plants to mitigate state power deficit and provide boost to overall economy
b) Provide access to quality energy supply in underserved and un-served rural areas
c) Relieve the subsidy burden on the State and Central Government: The policy can look at accelerating renewable energy installations where the subsidized conventional energy sources can be replaced or reduced e.g solar agricultural and water pumps,solar rooftops,RE based rural electrification programmes etc.
d) Low hanging fruits: Focus on areas with chances of quicker deployment which are typically application which provide early returns like diesel replacement technologies, industrial low temperature solar thermal applications etc.
e) Addressing developmental needs: Critical poverty and adversities can make developmental programmes and policies a priority in a state. Such states can look at the using RE as a vehicle to deliver its development programmes (through off grid RE) by successfully fulfilling the energy requirements in its programme implementation.
f) R&D, demonstration and pilot of new technologies: Specific needs of the state can demand initiating deployment of new technologies and models. The policy can encourage such projects in sectors that need urgent attention.
Actions: The policy should detail out the priority sectors for deployment of targets in consultation and involvement of various Government departments. It should also enlist the sectors where specific interventions will be attempted and made. Sectorwise breakdown of the above determined targets are further desirable for a transparent and clear policy. Schemes and programmes for priority sectors also should be announced in the policy for promotingoverall investments.
10. Technology Focus: Strategy and Roadmap:
Approach: A state policy needs to strategizeregarding focusing on specific technologies depending upon the resource availability both in the short and the long term. By virtue of its nature, the choice of technology gets automatically restricted based on the resources available locally in the state. Therefore, taking cognizance of the basket of renewable energy technologies available for the state to explore based on resource assessments is the first pre-requisite. Choice of technology will also be determined to a large extent on the sectoral focus as identified in the above section. Cost of the technology and readiness of the State to absorb the cost burden of deploying these technologies is also another important factor. Support infrastructure availability is critical for the success of the plans as well. The strategy to achieve the capacity targets will range from private investments to demonstration plants depending upon the technology development status.
Actions: The State renewable energy policy will need to make clear indication on the technologies that will be deployed to achieve the targets. It should also give directive to issue roadmaps for each of the technologies that will also specify the targets for each one of them.
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Resource Assessment:
Approach: High resolution and accurate resource maps and data need to be available to attract investors in this field. Since most of the states lack this information, state renewable energy policies should identify resource assessments as a priority action to be taken by the Government. Ease of availability and communication of data widely to stakeholders is also important.
Actions: State Nodal Agencies in consultation with the Energy Department of the State Government shall conduct a district-level assessment and mapping of renewable energy resources across the state to facilitate large-scale deployment of renewable power generation, including DRES. They shall undertake periodic review assessments as necessary, taking into account available technologies, markets and other relevant factors. Geographic information system (GIS)-based data systems should be used for such resource assessment. The resource assessment shall inter-alia also include a detailed district-wise inventory describing the assessed potential for DRES projects and applications e.g. Solar PV for home lighting, PV for irrigation pumps, rooftop PV, solar-wind hybrid etc.The assessment should also comprise such other information as would be useful in developing such electrification schemes/ projects, such as infrastructure assessment, village-wise energy demand (including non-electrified hamlets/), economic condition of the population, etc.
11. Eligible Producers:
• All power producers generating grid-grade electricity1 including power producers from stand-alone projects using renewable energy sources shall be deemed as eligible producers
• In the case of small hydro projects, only power producers having installed station of and below 25MW will be treated as eligible producer.
• There shall be no restriction on legal structure of entrepreneur in generation of power in accordance with the Electricity Act 2003. Companies, co-operative, partnerships, Local Self Governments, registered societies, NGOs, individuals etc. would all be eligible producers provided they undertake to generate power from Renewable energy sources, and fulfil the laid down conditions under the EA Act 2003.
• Focus on the development of supply chain and outlets to facilitate easy availability of DRES applications and Services, particularly those based on solar energy in all areas of the State. The activities shall include:
i. Introduction of new service delivery models of distribution like renting, leasing, BOM (build, operate, maintain), BOMT (build, operate, maintain and transfer), etc.
ii. Enterprise development programmes to develop entrepreneurs delivering RE applications and services locally. The State Government shall focus on creating a large number of small-scale entrepreneurs serving a set of local communities or villages, using decentralised systems for electricity generation and thermal applications.
iii. Government should pursue withtechnology providers/manufacturers and shall deploy local dealers/suppliers for delivering and installing the systems. Further, the technology provider/manufacturer can be pursued toorganise training programmes for entrepreneurs and other local-level business facilitators for maintenance of the installed systems.
12. Rural Energy Supply: Special Focus
Approach: Renewable energy has been considered to be an essential medium to address rural energy issue not only through electricity supply for households, industries and farms but also through non-electric applications like cooking. Unfortunately, till now the metric for energy poverty in India is usually
1 Quality of power produced should beequal or above the quality of power in the grid
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considered in terms on non-electrification. Till now, even at 95% of village electrification rate2 close to 75 million households in India are un-electrified. The RGGVY definition for electrification has been limited to connection provided to only 10% of the households in villages with population above 100 and public facilities. Hours of supply have also been mentioned, though time is not given (this can be at night too). Lack of reliability of the electricity supplied often renders most critical facilities like primary health centre, schools and offices powerless. Lack of modern cooking energy facilities affect quite a significant population in India (particularly in rural areas). Through this policy, the Government in co-ordination with the Energy department should develop a comprehensive plan for addressing this energy supply and demand gap through renewable energy. The approach needs to be towards the development of market based mechanisms for scaling up of renewable energy based electricity and appliances. As a first step, the mapping of energy poverty in the rural areas of the state should be incorporated in the renewable energy policy. Once mapped, the State Government should have three different modes of ensuring energy supply at the household level. States with high unelectrified rates should make rural energy supply a priority in its renewable energy plans and policies. Even states with high electrification rates should take stock of the household level electrification as well as general energy supply status. A plan for rural energy supply should form part of this policy and comprise of the following components:
a) Rural Household Electrification
i. Development of innovative business models for village electrification
ii. Distribution of independent RE based (mostly solar) electrical appliances to un-electrified areas.
b) Decentralized Distributed Generation (DDG)Scheme:Decentralized Distributed Generation (DDG) Scheme under RGGVY has received very few responses and can hardly be considered a success. The scheme provides more than 90% of capital subsidy and involves handing over to state utilities after 5 years of operation.Being essentially, utility led, States should strategize on how this scheme can be leveraged to implement more RE based decentralised rural electrification projects.
c) Rural cooking energy and thermal energy supply: A largely underserved area, cooking energy should be made an equal priority in the rural energy policy. The commonly followed strategy of distribution of free improved cookstoves, without much focus on continued operations, is unsustainable. Therefore, alternate strategies to develop a market should be initiated. Adequate measures to enable replication through establishment of supply chains and trained technicians should be specified.
d) Incorporating renewable energy in rural development schemes: Dedicated focus on ways to make renewable energy instrumental in increasing the effectiveness of rural development schemes needs to be provided.
Actions: The following action points should be clearly mentioned in the state RE policy to achieve sustainable, secure and affordable energy supply in rural areas through renewable energy.
a) Mapping of the current electrification status at the household level including accounting for the hourly supply jointly by the energy department and SNA
b) Develop and publish a Plan for renewable energy based rural energy supply ( encompassing aspects outlined in approach)
c) Commit to develop entrepreneurial efforts towards addressing issues in rural energy through announcement of new financing schemes and other existing programmes like DDG.
d) Commit to establishment of multiple supply chains and service centres in selected rural areas in collaboration with private sector and NGOs for making renewable energy based appliances/ parts available for different end uses.
2 CEA , 2014 http://www.cea.nic.in/reports/monthly/dpd_div_rep/village_electrification.pdf
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13. Incentives for State RE Sector:
Approach: Developing a new and upcoming sector like renewable energy, calls for several financial and other incentives. Factors like high upfront costs, social and environmental benefits and embedded subsidies in conventional electricity make further case for offering incentives to renewable energy based electricity. Incentives can be either direct in the form of subsidies or indirect in the form tax waivers and exemptions. A State Government should choose types of incentives carefully so as to avoid payment defaults or delays. Apart from this, one of the primary focus of the state should be to ease the flow of subsidies and other incentives from the Central Government to the beneficiaries.
The incentives and there applicability to all New and Renewable Energy projects in the states shall be guided by:
a) Additional subsidies from State Governments can be offered on specific technologies in priority sectors for wide scale uptake. Priority areas should be specified in discussion with the Central Government (for e.g. irrigation pumps, roof top solar, biomass plants at tail end, solar mini grids, etc).
b) Subsidies must be also be rationalised to ensure sufficient user stake in the facility. Past experiences suggest that even 90% subsidy by the Government cannot assure high uptake.
c) To ensure continued operation of RE projects and ease monitoring requirements, efforts to move towards generation based incentives combined with smart upfront financing mechanism systems must be devised.
d) The policy should give a discussion on the nature of incentives include capital subsidy or interest subsidy as applicable. For instance large scale solar and wind projects do not need capital subsidy but should be supported with tariff mechanisms however biomass based tail end plants of upto 1-2 MW feeding into the rural distribution network could get an interest subsidy.
e) Subsidies should be treated as intermediate financial support to address market inequalities. The long term approach for the Government, therefore, needs to be towards establishment of sustainable market mechanisms. Subsidies in such a case can take the shape of schemes like refinancing, risk guarantees, microfinancing, etc. A conscious approach needs to be taken by the State Government to review the need for subsidies/incentives at regular intervals.
f) Clear timelines for the incentives should be provided in the policy.
g) Procedures from disbursement of subsidies and incentives should be made simpler and transparent.
Actions: Based on the principles above, the State Government can choose from the following financial incentives to renewable energy projects.
a) Additional state capital subsidies to priority and deserving areas
b) Entitlement to avail the facilities available under prevalent Industrial Incentive Policy in the State, and such other policies of the State Government,
c) Generation based subsidies/financial incentives
d) Exemption fromelectricity duty prevalent in the state.
e) Exemption from entry tax and/or VAT on Renewable Energy devices, equipments and or machinery
f) Subsidised loans as per guidelines and incentives or schemes of the Government of India and or the State Government, India Renewable Energy Development Agency (IREDA) and Ministry of New and Renewable Energy Govt. of India (MNRE) will be offered/ available for renewable energy projects.
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g) Low cost loans from State Government banks (including rural/co-operative banks) for renewable energy projects (State Government should enter into formal agreements with banks to finance RE projects at subsidised interest rates)
h) Exemption from open access charges or as guided by the State electricity regulatory boards
i) The provision of section 14 of Electricity Act 2003 for generation and distribution of electricity in rural areas be applicable of all new and renewable energy projects.
14. Infrastructure:
14. 1. Grid Access and interconnectivity:
Approach: Often utility scale renewable energy projects are located in remote areas wherein the power evacuation arrangements/substations are not readily available. So the project commissioning mainly depends on promoting grid access and strengthening. As mentioned earlier, transmission infrastructure will need to be planned in sync with the capacity addition targets. Lack of adequate transmission infrastructure to evacuate power can result in heavy financial losses. Each state should formulate a comprehensive long term grid plan in coordination with the RE targets envisioned in the policy. Availability of transmission infrastructure would bean important criterion for determining the implementation of RE development plans.
Actions: TRANSCO and the state nodal agency along with any other suitable organisation in the state need to jointly undertake the survey of LV, HV and EHV Substations and required transmission and distribution lines necessary for the grid interactive RE projects.A committee comprising of the members of TRANSCO, SNAs and other relevant organisations shall regularly examine the grid issues related to the renewable energy projects and undertake the augmentation of transmission linesand constructing new lines and receiving stations as and when required. To carry out a systematic planning for grid infrastructure development, a white paper of requirements and plans for the next 10-20 years should be published by the state. Also projects should also come up in prioritised areas and solar parks etc to have a synergy between setting up of future RE capacity and infrastructure development in grid and transmission. Wherever feasible, solar parks should be set up by a State Government agency (in support with the centre) to expedite grid infrastructure development. The policy should describe how solar parks can be leased out to project developers at reasonable rates.
The operators of the transmission and/or the distribution system in the state as the case may be
a) Shall be obliged to connect the renewable energy generator to the system within a specified time.
b) Shall extend the grid as per the requirement of RE generator and shall upgrade the network to ensure reliability of the interconnection as per specified standards.
For interconnection: The costs associated with evacuation line and other associated equipment up to the interconnection point shall be borne by the RE generator.
a) The costs associated with laying the evacuation line and upgrading the grid beyond the interconnection point in order to connect new RE generators/or accepting and transmitting energy fed into the grid for public power supply shall be borne by the transmission/distribution utility as the case may be.
b) The implementation of the connection must comply with the grid operator’s technical requirements. Further, the RE generator shall be entitled to have the connection implemented either by the grid operator or by any such third person or agency as the case may be.
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14.2. Grid Stability:
Approach: Since there will be large-scale injection of variable or infirm power from multiple RE sources like solar or wind, ensuring grid stability in the power system would be critical. Brining gradual stability in renewable energy injection into the grid throughadvanced projections and forecasting needs to be the top priority of the Government and suitably communicated through this policy.
Actions:
a) The RE generators shall implement advanced forecasting and scheduling techniques for appropriate scheduling of their generation. Similarly, the state power utilities shall adopt the various demand side management techniques to shift the load profile to enable maximum renewable energy utilization.
b) The State Government shall prepare plans, provide budget and implement programmes for grid modernization leading to creation of a smart grid in the state.
c) The State Government shall explore all current and emerging technologies (including pumped hydro) for storage of electricity and ensure their deployment in grid connected RE projects in the state as and when viable.
14.3. Land availability for renewable energy projects:
Approach: Land availability for putting large scale grid connected renewable energy projects, especially wind and solar energy projects have been a major concern in India. The acquisition of private land for wind and solar projects mostly occurs through mediations directly held between the land owners by the power producers.
In India, while the Land acquisition Act, 1894 (as amended in 1985) allows land for developmental purposes, the Resettlement and Rehabilitation (R&R) Policy, 2007 ensures that minimum displacement occurs in large scale projects. Of all the project options, the one with least displacement is selected and adequate resettlement package is decided to compensate the displaced communities. RE projects are established on private, revenue or forest land. States have different policies for land purchase/allotment. In case of private land, conversion of land use status, from agricultural to non- agricultural land is prerequisite for establishing project3. Land that is identified in forest areas can be acquired only on lease basis and subject to clearances from the forest department. This adds significant delays to the project development process.
State Governments shall devise policy provisions that can aid in obtaining land for renewable energy projects for developers while maintaining the land acquisition sensitivities in the State. It should also make land clearances and approvals simpler and faster making SNAs the key responsible agency to facilitate the approvals as part of the Single Window Clearance (See Section 15.5). An inventory of surplus and unused land available with Public Sector Undertakings, State Govt., Urban Local Bodies/ Gram Panchayat lands and suitable private waste lands, unproductive single crop agricultural lands shall be prepared be undertaking a district wise survey to identify lands for the Renewable Energy projects. Renewable energy projects can be land intensive. Depending on land availability in a state should strategize on land intensive versus land efficient technologies. This strategy should also feed into the initial technology wise target setting as part of the policy. Solar Power Parks can also form an essential part of this strategy wherein large tracts of land are leased by the Government (SNA/Energy Department) and sub leased to renewable energy developers.
Actions:
In this regard the State Governments can include the following provisions in the policy:
a) Identification of land tracts for renewable energy by the State Government
3 http://mnre.gov.in/file-manager/UserFiles/report-on-developmental-impacts-of-RE.pdf
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b) An inventory of barren and wastelands allocated renewable energy projects to be made available by the SNAs. It should also allow deemed conversion of agricultural land into non- agricultural land in cases where applicable with adequate safeguards.
c) Land clearances and approval should be simplified and the SNA should be provided with powers to facilitate land acquisition in coordination with relevant state agencies.
d) Government should facilitate land availability through land banks and renewable energy parks.
e) Long term lease of land (20 years or more) for renewable energy projects should also be supported through suitable policy measures by the Government.
f) State Government should develop solar parks in collaboration with the Central Government and have a policy for their development and management.
g) The development of solar parks and dedicated energy plantations should be promoted and facilitated by the state, through appropriate policy measures and incentives for the private sector.
15. Regulatory framework:
15.1 Feed in tariffs (FITs):
Approach: Also known as preferential tariffs these are one of the most important policy instruments used for promoting RE in the country.In a feed-in tariff scheme, providers of energy from renewable sources, such as solar, wind, biomass, etc., receive a price for what they produce based on the generation costs. A purchase guarantee is offered generally on a long-term basis, ranging from 5 to 20 years, but most commonly spanning 15–20 years. The cost of the tariff payments are typically shared with the electricity consumers4.
The State Governments need to guide and provide adequate support to regulators for setting up effective FiTs for different renewable energy technologies.
Actions: The Policy should clearly mention that FiTs set by the SERCs shall be followed by all RE producers as well buyers. In case of open access consumers i.e. captive as well third party sale, mutually determined tariff will be followed through a power purchase agreement for a period as specified by the regulator. In addition, the State government should facilitate:
o Guidance on factors and costs that need to be considered while setting up FiTs.
o Conditions and timeline under which FITs should be revised can be provided to SERCs.
15.2. Renewable Purchase Obligation (RPO):
Approach: SERCs are responsible for releasing the RPO and REC regulations for any state taking into several conditions (Refer section 8.1) .The State Government through appropriate provisions in renewable energy policy should facilitate information to SERCs on the criteria and methods used for setting up RPO targets and ensure that National policies like NAPCC recommended trajectory is followed. The State Government policies should also set renewable energy installation targets in accordance with these RPO.Monitoring of the enforcement and compliance of the RPO targets should also be addressed in the State RE policy. Regular interaction and co-ordination with the obligated entities which includes DISCOMs, captive consumers and open access consumers should be encouraged through the policy.
Actions: The State RE policy should clearly mention that the policy and its components will be guided by the RPO targets specified by the State regulators from time to time. The SNAs should be responsible for guiding and co-ordinating with obligated entities to work together towards achieving these targets on time. It should also be responsible for monitoring these targets and making this information publicly available.
4 http://www.unescap.org/sites/default/files/26.%20FS-Feed-In-Tariff.pdf
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15.3. Net metering:
Approach: Net or gross metering typically involves a special metering and billing agreement between utilities and their customers, which facilitates the connection of small renewable energy-generating systems to the power grid. The State Governments should come out with net/gross metering policies to promote rooftop PV systems. The State Governments can also recommend the inclusion of these provisions through state renewable energy policies and state specific solar policies.
Actions:
The State Government may take the following steps in this regard:
a) Revise existing renewable energy polices in the state to include net or gross metering for solar PV systems.
b) Devise net metering policies for solar PV systems in the state to allow commercial establishments and individual homes connected to the electrical grid to feed excess power back to the grid.
c) Work along with regulators to publish appropriate regulations
15.4. Open access, Wheeling and Banking:
Approach: Open access allows large users of power (generally having connected load of 1 MW and above) to buy cheaper power from the open market. The idea is that the customers should be able to choose among a large number of competing power companies, instead of being forced to buy electricity from their existing electric utility monopoly. Open access charges are paid by power generating companies to use existing infrastructure of state transmission and distribution utilities to sell to buyers other than Electricity Supply Companies (ESCOMs). Open access charges for the states are payable according to the Open Access Regulations, Tariff Regulations and/or Co-generation & Renewable Sources Regulations of the respective SERC. Cross subsidy surcharge (CSS) is a charge levied from the industry when it buys power from open market rather than the state-owned utilities.The State Government through appropriate policy measures should provide open access provisions that attract more renewable energy investors to the sector. The policy must have a clear provision on all key aspects of open access.
Actions:
In this regard it can include the following provisions in a RE policy:
• Advise SERCs to provide concessional charges for banking, wheeling and cross subsidy surcharge, for open access provided to renewable energy producers in the state.
• The open access procedures, clearances and approvals should be simplified and be made time bound.
• The banking facility for the power generated shall be allowed as determined by the SERC from time to time for the energy banked with the STU/ distribution licensee. Energy banked beyond the time prescribed will be utilized and paid for by the STU/ distribution licensee at SERC applicable tariff
15.5. Single window clearance:
Approach: Renewable energy projects in India are often stalled or delayed due to the multiple clearances and approvals required for setting up such projects. Such clearances and approvals usually require several months to a few years and the developers are compelled to cancel the projects or suffer losses.Single window clearance mechanisms for renewable energy projects can significantly fast-track the establishment of renewable energy projects, by avoiding these unnecessary delays,
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States should introduce a process of single window clearance for renewable energy projects through policies or regulations. Although certain states have such provisions in their renewable energy policies, implementation has not been adequate. Therefore states can also provide a timeline for constitution of single window clearance mechanism in the policy and also have an effective mechanism for monitoring its implementation and revision through a nodal agency.
Actions:
The state can include the following provisions in the policy:
a) A single window clearance committee should be formed. It should also have a grievance redressal mechanism.
b) Clear and concise information should be available on permits and clearances required. The state nodal agency for renewable energy development should be provided with more resources and capacity to facilitate the process of commissioning of projects.
c) The clearance procedure can be made IT enabled and time bound to avoid delays in the processes.
16. Mobilising project finance for renewable energy projects
Approach: High capital costs are one of the key limiting factors of renewable energy projects. To attract funds from private sector, it is essential that finance mobilising strategies are applied in the State as well as Central level. In the area of grid-connected energy, private financing instruments, such as debt, equity, mezzanine capital, and partial risk guarantees are largely being used in India. In the area of off-grid energy, financing of RE projects is currently driven more by “impact investors” than “financial investors”. There are also several risks associated with off-grid projects, such as unpredictable power consumption patterns; low creditworthiness of off-takers; and a lack of scalable business models. Most off-grid RE projects are small in size and fail to attract the attention of financial institutions (FIs)5.
Thus most off grid renewable energy projects are still financed by Central and State Government investments, regional rural banks and international development organisations.Related infrastructure for renewable energy projects as well as niche areas like demonstration projects or rural energy supply projects in the State will also require massive scale of investments.Though these are some macro level financing issues, some points in context for state level financing are discussed below:
Actions: Multiple strategies, addressing different priority problem areas, should be planned and provided for in the policy. States can choose from the following financing alternatives:
Financing institutions: At the Central level, Indian Renewable Energy Development Agency (IREDA) provides exclusive financing for renewable energy projects. However, there is no such provision at the state level. However, states can have instruments like power purchase agreements, payment security mechanisms among others which enhance confidence of bankers to fund projects in that State.The State Government should take up capacity building exercises of different financing institutions including agri-based banks, rural banks, industrial banks, SME financing banks, etc.to promote smaller projects, roof top and rural energy projects.
CSR: Recently enacted Companies Act 2013, legally obliges Companies to spend 2% of their profits towards Corporate Social Responsibility (CSR). Amendment to Section VII of the act has allowed investments in renewable energy projects as well. State Government should explicitly describe the Government’s intention to utilise these funds for renewable energy projects as well. It should also direct SNA for preparation of guidelines for utilising CSR funds for renewable energy projects by PSEs and private sector companies in consultation with relevant State Government departments.
NCEF: The National Clean Energy Fund (NCEF) was launched in 2010 by the then Finance Minister Shri Pranab Mukherjee by levying a clean energy cess on coal produced and imported in India at a nominal
5 Financing Renewable Energy in India: A review of current status and recommendations for innovative mechanisms
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rate of Rs.50 per tonne. In the last budget, this amount was increased to Rs. 100 per tonne of coal while the scope of the fund was increased to environment projects. Mechanism for availing funds from NCEF is project proposal based which will need to be approved by the Inter Ministerial Group. State Government, in the State Renewable Energy Policy, can identify specially areas like transmission or rural electrification or solar irrigation pump schemes etc which can be funded from NCEF in co-ordination with MNRE and in accordance with the Guidelines of the Fund.
State Renewable Energy Fund: States can also establish their own funds to raise finances for various initiatives in the sector. Such a fund should support all the activities proposed including doing pilot projects.Few states have already taken this initiative forward in India. The source of these funds can be established through a public benefits surcharge, cess on conventional electricity supply or other such taxes.
Micro financing initiatives: For ensuring large scale uptake of decentralised renewable energy systems especially in the rural areas, micro financing mechanism for RE technologies will also need to be established. State Government should detail out in its policy the strategy for developing micro financing instruments in the state.
Innovative Financing models: Several innovative financing/business models that steer away from subsidies or facilitate mobilisation of funds have been demonstrated throughout India. State Governments should, through this policy, make conscious efforts towards demonstrating and scaling up financing models on different technologies.Pilot projects should be set up through those innovative financing models andthe State RE Fund can also be utilised for this.
MPLAD and MLALAD funds: The state through appropriate measures can also encourage MPs and MLAs for taking up RE projects in their constituencies.
17. Renewable energy manufacturing, R&D and skill development:
17. 1. Manufacturing capacity and base:
Approach:Setting up manufacturing units for RE systems like other businesses is essentially a central level function, however through a range of initiatives including providing investor friendly business opportunities, the states can promote themselves as a key destination for potential enterprises. It can consider the following measures through appropriate policy:
Actions:
States should make an assessment of the existing manufacturing capacity ofRE systems in the state and the potential for further manufacturing.
Unorganized manufacturing sector, if any, exists in the state should be brought under the formal realm and be streamlined for large scale production.
States should encourage and provide assistance to renewable energy manufacturing units under the state Renewable Energy Policies. It can also give fiscal incentives to MSMEs, interest subsidy for micro manufacturing enterprises, etc.
17. 2. R&D/ Indigenous technology/ Schemes for R&D promotion:
Approach: In addition to the efforts being made by the Central Government, states should also take suitable initiatives on a local level to accelerate R&D of renewable energy technologies with a focus on promoting applied research and undertake pilot and demonstration projects.
Actions:
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a) The state should keep a specified portion of the funds allocated for renewable energy development for R&D and pilot/demonstration projects.
b) State Government should co-ordinate with educational and research institutes and organisations in the state that can work on R&D of specific renewable energy technologies under state specific conditions.
17.3.Human resource development and capacity building:
Approach: The states need to focus on promoting renewable energy education and training local people for skills development and utilization of renewable energy systems. This is particularly important in rural areas where renewable energy systems are setupand suitablecapacity building and training programs are required for the local population. In this regard the State Government can undertake the following initiatives:
Actions:
a) State nodal agencies and other Government organisations should implement regular training programs and workshops on operation and maintenance of decentralised and off-grid renewable energy systems.
b) Seminars, exhibitions and, trainings, public awareness programs on renewable energy, should be carried out by the State Government. Awareness drives for rural areas should be specifically designed.
c) States Governments, through existing or new technical institutes, should impart training for technicians especially at rural level.Some institutions could be developed as centres of excellence for RE research.
d) Specific technical courses on renewable energy should also be consciously incorporated in the curriculum after reviewing the existing curricula.Institutes/training centres should also be selected where specific courses can be taught; including special programmes for teaches training.
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Annexure 1:
DRES Applications:
- Solar PV for Irrigation: Huge power demand for irrigation at a subsidized cost together with relatively shallow groundwater table coupled with small average land holding of individual farmers justify the large-scale deployment of solar PV pumps with financial assistance from the State Government, in tandem with the Central Government. Largely, diesel pump-sets are being used for agricultural irrigation at present, indicating huge potential for retrofitting and replacing them with solar powered pump-sets. Therefore, the State Government shall launch a retrofit program for diesel pumps with solar PV pumps and provide finances for the farmers to adopt such a program or help provide pumps for additional coverage. In addition, the State Government shall adopt measures to promote advanced drip and sprinkler irrigation techniques for water and energy conservation. The total subsidy, however, should not be more than 70 % and the target should be to reduce cost of pump and subsidy by 10% every 3 years or so.
- Solar PV for rural home system: The State Government shall prepare and implement a programme of SPV home lighting systems in areas inaccessible to the grid or not provided by the micro-grid. In villages which are not electrified, depending on thesocial and local conditions, individual solar lighting solutions based on a minimum need of 3 to 4 points, 2-3 CFL, 1 fan etc in a household through a solar home system shall be pursued. A network of accredited solar product suppliers and service providers shall be created to provide quality assured solar home lighting systems with post sale repair arrangement in place.Alternatively, the programme can be implemented through the authorized channel partners who can aggregate the solar home lighting proposals of the end users and submit them to the FI/rural and co-operative banks for a low cost loan
- Biomass/Biomass-solar hybrid system: The State Government shall prepare and implement a programme to promote decentralized biomass/biomass–solar-based micro-grid projects to meet the electricity needs of people in un-electrified areas.Setting up biomass based power plants at tail end would provide a base load and thus counter solar and wind power generation. In this context, State RE policy can also have provisions for dedicated wood based energy plantations.
- Rooftop PV: The State Government shall establish a programme on implementation of solar PV-based rooftop systems on public buildings and commercial buildings with an objective to reduce their electricity consumption and to displace/reduce fossil fuel (diesel) consumption and the recurring costs incurred on diesel.
- Solar thermal for cooking/water heating/industrial cooling/heating: The State Government shall encourage communities, educational institutions, commercial (e.g. hotels) and industrial establishments in the state to use various solar thermal technologies for hot water, low grade heat and cooling purposes.
Grid Connected RE projects:
- Wind power projects - New wind projects to be commissioned and located at wind sites having commercially viable annual mean Wind Power Density (WPD) using new wind turbine generators.
- Small hydro projects – New small hydro projects to be commissioned and located at sites using new plant and machinery, and with installed power plant capacity lower than or equal to 25 MW at a single location or as may be classified by MNRE from time-to-time. There is need to promote small/micro/pico hydro projects in selected states.
- Solar Photovoltaic (PV) projects - Solar PV plants that use sunlight for direct conversion into electricity through photovoltaic technology.
- Concentrated Solar Thermal Power projects (CSP) – Solar thermal power projects that use sunlight for conversion into heat and electricity through concentrated solar power technology based either on line focus or point focus principle. Their application should also focus on heating and cooling.
- Biomass power projects – New biomass power projects to be commissioned using new plant and machinery and biomass fuel sources, provided use of fossil fuel is restricted as stipulated by MNRE from time-to-time.The focus should be on grid connected sub megawatt scale (i.e 1-2 MW) plants if ensuring fuel supply does not pose a big challenge.
- Bagasse-based co-generation projects - New bagasse (non-fossil fuel)-based co-generation projects to be commissioned shall qualify to be termed as such projects, if they use new plant and machinery and also meet the qualifying requirements as specified by MNRE.
- Municipal Solid Waste (MSW) to Energy Projects - The project shall qualify to be termed as municipal solid waste to energy project if it uses new plant and machinery and has grid-connected system that uses municipal solid waste as a fuel for generation of electricity by using technology approved by MNRE.
This report is prepared by Climate Parliament India and South Asia team led by
Sumedha Basu, with Deepak Kumar Rai and Niharika Krishna.
Mr Deepak Gupta Former Secretary, MNRE and Prof Amit Kumar, TERI
University have reviewed the report and have given their detailed comments and
suggestions. We thankfully acknowledge their support. We value immensely the
suggestions provided by the Climate Parliament network of Legislators who
initiated and supported the need to undertake such a study.
While every effort has been made for the correctness of data/information used in this report,
neither the authors nor Climate Parliament accept any legal liability for the accuracy or
inferences for the material contained in this report and for any consequences arising from the
use of this material.
Climate Parliament is an international cross-party network of
legislators, dedicated to preventing climate change and promoting
renewable energy. The organisation provides support to legislators in
taking political, legislative, policy, and budgetary initiatives to promote
solar, wind, small hydro, biomass, geothermal, and other forms of
renewable energy. Climate Parliament has been supporting legislators
in their work on renewable energy for over five years, and has
established a network of legislators from across Asia, Africa and
Europe.
November 2014
Guidelines
for
A Model Renewable Energy Policy in Indian States
• Email: [email protected]
• Website: www.climateparl.net
• Contact: [email protected]
