COMPREHENSIVE
POLICY ON RENEWABLE ENERGY ON THE ANVIL
PROMOTIONAL
INCENTIVES FOR COGENERATION PROJECTS DURING 10TH PLAN
The Ministry of Non-Conventional
Energy Sources (MNES) is formulating a comprehensive policy on
renewable energy, which will provide a framework for various fiscal,
institutional, regulatory and legislative interventions. This
was stated by the Minister of State for Non-Conventional Energy
Sources, Shri M. Kannappan, while inaugurating the third International
CHP (Combined Heat and Power) and Decentralised Energy Symposium
and USAID International Conference and Exhibition on Bagasse Cogeneration
here last evening. Suitable enabling provisions have also been
proposed in the Draft Electricity Bill for the accelerated development
of this sector, he added.
Shri Kannappan said
that in the 10th Plan, his Ministry would provide for
promotional incentives for the development of industrial cogeneration
projects. The Ministry would request the States to bring out conducive
policies for supply of surplus power generation from various projects
to their grids. It is estimated that industrial cogeneration potential
in the core industry sector is about 10,000 MW of surplus grid
power generation in industries such as textiles, paper, cement,
steel, fertilizers, petro-chemicals and food processing.
Outlining the progress
made in the field of non-conventional energy in the country, Shri
Kannappan said that the installed capacity was about 3700 MW of
power from renewables, which was about 3.5 per cent of the total
power generation. Being the largest producer of sugar cane in
the world, India has the potential to optimise bagasse cogeneration.
It is estimated that around 3500 MW of additional power could
be produced if all the sugar mills in the country switch over
to modern technologies of cogeneration. Surplus power generation
by optimising cogeneration from sugar mills did not receive the
importance it deserved because there was no market for the extra
power produced. However, various steps taken by the MNES including
attractive buy back rates for the power generated and long term
loans from financial institutions, sugar mills, investors and
entrepreneurs have come forward for setting up cogeneration projects,
Shri Kannappan added.
The Minister said
that a total surplus power capacity of 303 MW had already been
installed from 43 projects in six States and 31 projects aggregating
to 312 MW were under construction. A capacity of about 600 MW
is in the pipeline, he added.
Earlier, Shri Kannappan
flagged off the new pollution-free battery operated passenger
vehicles manufactured by Bharat Heavy Electricals Limited (BHEL).
The three-day international
conference is organised in the capital to coincide with the UN
Conference on Climate Change (COP-8) being hosted by India here.
Among the dignitaries who addressed the inaugural session were
the Mauritian Minister for Public Utilities, H.E. Mr. Alan Ganoo,
Shri Sharad Pawar, MP, who is the Chairman of Cogeneration Association
of India and the Deputy Chief of Mission in the US Embassy in
New Delhi, Mr. Albert Thibault.
