India is tapping all sources of renewable energy to reduce its dependence on fossil fuels and cut down emissions. The ministry of new and renewable energy (MNRE) is leading India?s renewable energy drive. MNRE secretary Deepak Gupta discusses with FE?s Kakoly Chatterjee his ministry?s various plans to promote renewable energy across the country. Edited excerpts:
How is the renewable energy sector evolving in India?
Several companies are engaged in the manufacture of solar cells with about 700 mw installed capacity and modules with an installed capacity of close to 1,000 mw. More than 20 lakh small solar PV systems, especially for lighting, have been installed in the country. Our target is that by March, 2013, 1,100 mw of grid solar power and about 200 mw capacity of off-grid solar applications are deployed. India has 12,000 mw wind power generation capacity against an estimated potential of around 48,500 mw. Another 4,500 mw capacity addition is likely in the next two years.
We are also producing bio-diesel. Our focus is on using Jatropha oil for bio-diesel production. Jatropha cultivation has been taken up in about 9 lakh hectares in several states. Bio-diesel production units with a total installed capacity of 2,150 tonnes per day (TPD) have also been set up.
What policy changes are being contemplated to attract investments in this sector?
The solar power projects under the Jawaharlal Nehru National Solar Mission (JNNSM) are envisaged to be installed on a build, own and operate basis. The developers would be eligible to get generation-based incentives on the units of power fed to the grid. In order to attract private players, a single window clearance setup has been created through NTPC Vidyut Vyapar Nigam.
Are you planning to give further incentives for wind power?
From the early nineties 100% accelerated depreciation was available for the renewable energy sector, including wind power. This was reduced to 80% in 2004. This is likely to be continued at least up to the end of 11th Plan period or till introduction of the direct taxes code. Recently, a generation-based incentive (GBI) scheme has been introduced by the government for projects that do not avail of the accelerated depreciation benefit. Under the scheme, an additional incentive at Re 0.50 /kWh will be provided subject to a maximum of Rs 62 lakh per mw. A 4,000-mw capacity addition has been targetted through this route for the last two years of the current 11th Plan.
What is the progress in the ministry?s remote village electrification programme?
The programme is being implemented in a complementary mode to the Rajiv Gandhi Grameen Vidyutikaran Yojana of the ministry of power and envisages extending the electrical grid to all un-electrified villages in the country. Whenever it is found to be unfeasible, due to technical or economic reasons, to extend the grid to a particular village/hamlet, renewable energy-based systems are provided for basic lighting/electricity as an interim measure. The central government has clarified that deployment of these systems will not deprive these remote villages of grid connectivity in the future.
The identification of the remote villages to be covered under this programme is carried out by the respective state governments after due evaluation of the feasibility of grid connectivity. The list of identified villages is endorsed by the Rural Electrification Corporation (REC), the apex implementing agency for Rajiv Gandhi Grameen Vidyutikaran Yojana, to avoid duplication. The outlay for the programme has been placed at Rs 600 crore after the mid-term appraisal of the 11th Plan target. However, the extent of coverage depends on the identification of villages by states and the submission of proposals for support. Till March 31 this year, around 8,700 villages and hamlets were endorsed by REC.
What is the implementation status of the scheme for improving the energy efficiency of buildings?
So far 30 lakh sqm floor area has got registered under the GRIHA National Rating System for 45 projects for which constructions and evaluation are in progress. The Centre has taken a decision that all new central government buildings will henceforth be at least 3-star GRIHA rated and 4-star where site conditions permit. We are also trying to make GRIHA guidelines and ratings for green campuses.
How is the waste-to-energy scheme progressing?
Municipal solid waste is good for energy recovery, however, since the practice of source segregation of waste at the household level is non-existent, not much progress is expected in this area. Only two projects of 6.6 mw each based on refuse-derieved fuel (RDF) at Hyderabad and Vijayawada in Andhra Pradesh have been commissioned and three projects?two in Delhi and one in Bangalore?are under implementation.
Industrial wastes produced in various food processing industries such as distilleries, sago and starch industries, dairy, poultry, pulp and paper industry have been used to generate electricity. About 120 mw equivalent power is generated from such wastes. Regular meetings with industry associations for exploitation of industrial wastes are organised.
How is the capacity addition progressing in small hydro-projects?
Against a potential of 15,000 mw, over 2,700 mw has been achieved under small hydro-power (upto 25 mw). Hydropower is a state subject and projects are developed by both public and private sectors. The allotment of sites and all statutory clearances such as forest clearance, pollution clearance, power purchase agreement etc are done by the concerned states. MNRE provides financial incentives for survey and investigation and setting up of power plants. The ministry has been pursuing the potential states for early allotment of sites and expediting execution of SHP projects.