Towards Achieving a 15% Renewables Target for India - 21 Dec, 2011

In India, the Climate Parliament is continuing with its collective efforts to achieve a nation-wide renewable energy target of 15% by 2020. The Climate Parliament Group in the Indian Parliament met on 14 December evening, 2011 at the Deputy Chairman’s Hall, Constitution Club, Delhi. Along with a group of prominent experts on renewable energy, they deliberated upon several issues that are to be raised both in Parliament and with the executive in the near future. For example, they discussed decentralised and small off-grid applications of renewables, reduction of energy requirements and promotion of efficiency, lessening of costs and increasing of volumes, renewable energy technology options, R&D funds, creating a market for renewables by means of binding regulations, incentives to stimulate the renewable energy sector, aggressive trusts to indigenous manufacturing and R&D ,as well as ways and means of realising these objectives and increasing the potential of renewables in the country.

Climate Parliament Advisor Sanjay Kumar addresses the meetingAt the end of the meeting, Members of Parliament also agreed that the Climate Parliament Group will take up some of these critical issues with the respective Ministries and bodies like Ministry of New and Renewable Energy (MNRE), and Power and Planning Commission. Issues to be taken up include the need for significant institutional, financial, technology, R & D, capacity and other supports, as well as improvements in uptake of renewables in total energy mix. Mr. Rajiv Pratap Rudy, Member of Parliament, presided over the meeting.

The context of this meeting was a letter written to the Prime Minister of India by a number of Members of Parliament (all of whom are members of the Climate Parliament) in March this year, requesting to ‘lay out an ambitious roadmap and a programme for the renewable energy development in consonance with the 15% target at the earliest possible’. A positive development came in the form of a recent document: ‘Faster, Sustainable and More Inclusive Growth: An Approach to the Twelfth Five Year Plan (2012-17)’. Written by the Planning Commission of the Government of India the document states that ‘the share of new and renewable energy could go up to 15 percent by 2020’ (p. 42). The 'Approach' also injected a new element of inquiry into the Indian renewable energy objectives, promising positive new possibilities by stating that ‘With a National Solar Mission plans for a capacity of 22,000 MW by 2022, C-WET estimated a technically feasible wind potential of 49,000 MW. A fresh assessment of wind power a potential by some agencies has mentioned a higher figure which needs realistic review by the MNRE based on the scientific norms. These areas will need further study. The potential for such generation is clearly higher than current estimates of about 50 GW’.

 

Mr Girish Sant, Coordinator of Prayas (Energy Group), Pune, presented to the 14 December meeting on ‘Renewable Energy and Energy Efficiency: Two Imperatives for India’ to the MPs. He noted that India spends 5% of GDP on net energy imports, compared to 2% by USA, EU or China. Indian imports are likely to increase due to rupee depreciation and more expensive coal imports. Thus, there are major policy changes required to improve the situation, through increased market-share for renewables and through efficiency measures. According to him, renewables can be mainstreamed, as solar costs are reduced from Rs 16 to Rs 8 per unit, and wind costs are comparable to coal. According to him, to a achieve 15% renewable energy target by 2020, we will need to double the rate of RE capacity addition. The existing power system will need to adjust to accommodate wind and solar generation, and the Ministry of Renewable Energy and Power will be required to work in co-operation. There should also be promotion of Indian manufacturing, to avoid import dependence.

Dr. S. P. Gon Chaudhuri, Adjunct Professor at Bengal Engineering and Science University and President of NB Institute for Rural Technology, presented the challenges and possibilities in the area of renewable energy technology in India. According to him, about 5 million people in Indian villages now use solar power. Renewable energy, particularly off-grid solar photovoltaic, can play a major role in this regard.

Mr Anshu Bharadwaj, Executive Director of CSTEP, Bangalore, emphasised that a 15% target is achievable, but stated that it would require a lot of effort and planning in technology, economics, financing, policy and regulation. In the realm of wind power, there are some key challenges: better and stronger interconnection within regional grids, and between regional grids and national grids, better wind forecasting techniques, coordination between agencies, and simplification of land acquisition and conversion policies. In the realm of solar, the challenges are intermittency, the need for policies to identify ‘paying consumers’ and land acquisition.

Mr. Jaisingh Dhumal of ICICI Bank touched upon various financial issues such as the cost of funds, long-term funds, credit risks, R & D funds, and creating the market for RE by introducing binding regulations.


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