Jul 28 2010
A recent announcement by the chairman of the Central Electricity Regulatory Commission (CERC) indicates that India is on its way to achieve the set target of 10% renewable energy production by the year 2015. Currently India meets only four percent of its total energy generation of 161.4 GW through renewable energy sources though it has the installed capacity of 16.8 GW to meet 10% of the total energy generated.
Though wind energy leads the table of renewable energy sources, in terms of production and installed capacity only handful of states such as Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, Rajasthan and Karnataka are in reality involved in the production. Currently the country is witnessing expansion in wind energy production due to changes in the technology and the joining of one of the world leading wind turbine manufacturer in the wind energy production. Also the competitive purchase price offered for the power produced encourages the players of wind energy market. The year 2009–2010 witnessed 15.3% growth in wind energy production resulting in an addition of 1565 MW to the power grid.
The solar energy sector in India is still in its nascent stages of development. The Indian government is planning to achieve 20,000 MW solar power production by the year 2022. Hence the government has announced various incentives in the form of tax rebates and power purchase agreements. The government also has issued instructions to the state electricity boards to receive at least 10 percent of their total power supply from renewable energy sources before the end of the year 2010 and counseled the boards to increase the share by one percent every year till the year 2020.
The other improving measures of the government include a purchase price of Rs.17.91 per kWh for the power produced by solar plants, security funds to protect the investors from defaulting state utilities and feed-in-tariff schemes for individual home owners to sell excess power to the grid at higher rates.
The change in policies and incentives are aimed at attracting both domestic and international investors to participate in the imminent renewal energy revolution.