Renewable energy law to help tide over shortage

  • 17/07/2008

  • Economic Times (New Delhi)

Sushmi Dey & Subhash Narayan NEW DELHI WHILE the Indo-US nuclear deal may be waiting in the wings, the government has proposed yet another initiative to boost the growth of alternative energy sources in the country. It is planning to enact a new Renewable Energy Law that would stipulate mandatory procurement of prescribed minimum renewable energy in each state. The move is aimed at diversifying the country's energy mix that is dominated by oil, gas and coal as basic fuel feed. A proposal for the renewable energy law has been mooted by Prime Minister's Energy Coordination Committee. The committee has directed the ministry of new and renewable energy (MNRE) to begin consultative process with all stakeholders for finalising the draft of the proposed law. The new legislation is expected to give legal teeth to renewable energy policy that failed to get the desired investment in the sector. According to sources, the draft would be formed on the basis of a model renewable energy law submitted to MNRE by the World Institute of Sustainable Energy (WISE), a Punebased NGO. The proposed legislation may also provide for a uniform incentive scheme for research, development and demonstration of renewable technologies as well as support market development activities. "The renewable energy law is critical for energy security of the country since we are facing tremendous crisis in fossil fuel market. The law is about three basic things: transition to sustainability, managing climate change crisis and tackle emissions from electricity generation,' WISE director general G M Pillai said. The law is also likely to make it mandatory for power generation companies to generate a certain percentage of power from renewable sources, an official said. While the Electricity Act would remain, the other legislation as far as electricity is concerned, the new law could also deal with thermal applications, building codes and rooftop solar power applications. WISE has recommended three technology missions to support solar energy, biofuel and hydrogen. A comprehensive legislation would accelerate the development of renewable energy run across a wide spectrum, an industry expert said. Legislation for renewable energy has proven a successful instrument of change towards sustainable development in countries like Germany, Australia, China and Taiwan. The gross installed capacity of grid interactive renewable power in the country is estimated at 11,273 mw, which accounts for 8% of the installed generation capacity. While the government plans to generate an additional 78,577 mw power by the end of 11th Plan, it has set a target of 13,500 mw from renewable energy sources. sushmi.dey@timesgroup.com