23th April, 2002
Ministry of Power & Non-Conventional Energy Sources  


NATIONAL LAUNCH OF CO-GENERATION ASSOCIATION OF INDIA

UPTO 5000 MW POTENTIAL FROM CO-GENERATION


The Co-generation Association of India (COGEN) was jointly launched at the national level by the Minister of Power Shri Suresh Prabhu and the Minister of State (Independent Charge) for Non-Conventional Energy Sources, Shri M.Kannappan here today.

In his key note address, the Minister of Power Shri Suresh Prabhu welcomed the initiative and said co-generation would increasingly play an important role in capacity addition in the power sector in the coming decades. With environmental concerns becoming important and the pressure of population increasing the pressure on land, renewable sources of energy have interesting possibilities, the Minister said. Co-generation will help improve the quality of life while keeping the environment clean. Shri Prabhu emphasised the role of renewable energy in adding at least 10% incremental power generation capacity every year. This is necessary not only for environmental considerations but also for energy security, he said. Referring to the Electricity Bill 2001, the Minister said the Bill for the first time would make generation de-licensed and common access to the transmission network would be provided to users through payment of wheeling charges determined by regulators. Commending co-generation, the Minister said that at Rs.2.5 crore to Rs.3 crore per MW co-generation cost is not much more than the cost of generating conventional energy which is Rs.4 crore per MW. The Minister expressed the hope that the Electricity Bill 2001 would be passed in the monsoon session of Parliament as all major political parties have shown support for it.

In his address, the Minister of State for Non-Conventional Energy Sources, Shri M.Kannappan said that major incentives are proposed for the co-generation sector during the 10th plan. Specifically referring to the bagasse co-generation in the sugar industry, the Minister said that his Ministry is a strong proponent to project the optimum potential of this sector to maintain the strength and health of the sugar industry. Studies have shown that between 3500 MW to5000 MW power can be generated through co-generation in the sugar industry with maximum potential of 1000 MW each in the states of Maharashtra and Uttar Pradesh. So far, surplus power of 249 MW in 40 projects across 6 states has been installed and 600 MW capacity is in the pipeline, Shri Kannappan said.

In his initial remarks, the founder and chair person of COGEN India and Member of Parliament, Shri Sharad Pawar said, co-generation has the capacity to add 6000 to 10000 MW of additional power in the sugar, fertilizer, steel , cement and man made fibre industry. Co-generation he said has hidden environmental and social benefits. In spite of huge potentials, not much progress has been made over the past two decades due to pricing issues. Shri Pawar described co-generation as a clean cost-effective and reliable source of energy.