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India’s Renewable Energy Scheme could still do well

 it is vital for the government to ensure that RPO does not remain an
isolated initiative. Given the considerable renewable energy potential within India, a well-designed and workable RPO scheme, with the full support of state and Central policy makers, could result in promoting significant investment in this sector.

Renewed hope for alternative energy The mandate to buy electricity from renewable sources is not as stringent or unworkable as is commonly assumed ,Business Standard Ashwani Srivastava / Nov 23, 2012,  

The Central government, in its post-policy-paralysis avatar, has been actively promoting the Renewable Purchase Obligation (RPO) scheme, which obligates electricity supply companies to ensure that a specified fraction of their electricity consumption comes from renewable sources.

The scheme was announced in April 2010, and, according to media reports, is currently facing “major hurdles”. Almost all state-owned electricity distribution companies (discoms),
and obligated entities have failed to meet their RPO obligation for 2011-12. This includes several large entities, including Reliance Industries and Steel Authority of India .

The RPO scheme requires state electricity regulatory commissions to
set renewable energy purchase targets for “obligated entities”,
typically discoms, consumers with captive plants, and open-access
consumers. The obligated entities are mandated to source a prescribed
amount of electricity from specified renewable energy sources, i.e.
directly purchase renewable energy, generate renewable energy by
themselves, or purchase renewable energy certificates ( RECs ) from
generators located anywhere in the country. The scheme is being
implemented throughout the country to increase demand for renewable
energy…….
The ministry has set an ambitious target of producing 10,000 Mw of
solar power and doubling India’s renewable power generation capacity
by 2017. RPO is one of the important tools for implementing this
ambitious goal. India’s emission-intensity reduction target of 20–25
per cent for 2005–2020 will require a reduction of 733 million tonnes
of carbon dioxide. Calculated against this required annual emission
reduction target, RPO’s contribution – even if executed fully – comes
to a paltry six per cent. Seen in this light, the RPO mandates do not
look stringent. The majority of the remaining emission reduction is,
therefore, left to initiatives yet to be detailed.

That is why it is vital for the government to ensure that RPO does not remain an
isolated initiative. Given the considerable renewable energy potential within India, a well-designed and workable RPO scheme, with the full support of state and Central policy makers, could result in promoting significant investment in this sector.

The ministry has set an
ambitious target of producing 10,000 Mw of solar power and doubling
India’s renewable power generation capacity by 2017. RPO is one of the
important tools for implementing this ambitious goal. India’s
emission-intensity reduction target of 20–25 per cent for 2005–2020
will require a reduction of 733 million tonnes of carbon dioxide.
Calculated against this required annual emission reduction target,
RPO’s contribution – even if executed fully – comes to a paltry six
per cent. Seen in this light, the RPO mandates do not look stringent.
The majority of the remaining emission reduction is, therefore, left
to initiatives yet to be detailed. That is why it is vital for the
government to ensure that RPO does not remain an isolated initiative.

November 23, 2012 - Posted by Christina Macpherson | India, renewable