Vision document for power generation

NEW DELHI, INDIA: The Ministry of New and Renewable Energy has prepared in February 2011 a Strategic Plan for accelerated development of renewable energy sources for various applications including power generation, covering the period up to 2022.

The Strategic Plan covers grid-interactive power generation from the main renewable energy sources - solar, wind, biomass and small hydro power, besides off-grid/ decentralised renewable energy applications/ programmes such as biogas, remote village electrification, biomass gasifiers, solar photovoltaic/thermal systems, micro-hydel, waste-to-energy, etc. It, inter-alia, makes an assessment of the existing situation and external factors impacting growth, strengths and weaknesses of the sector and potential strategies to address the same.

The Strategic Plan document has laid down specific goals and targets for the six years period 2011-17 and long-term aspirational goals for the 10-year period up to 2022 for various renewable energy programs/applications, including power generation.

With regard to renewable power generation, the document estimates that about 50,000 MW new capacity would be added during the XII and XIII plan periods leading to total renewable power generation capacity of about 73,000 MW by 2022. This capacity will comprise of 20,000 MW from solar power under the National Solar Mission and the remaining 30,000 MW from other renewable energy sources mainly wind, small hydro and biomass power. The contribution of renewable power by 2022 to the then likely total installed capacity and electricity mix has been estimated to be around 18 percent and 7.3 percent, respectively, which could change depending on actual achievements of conventional power capacity.

Various steps have been taken by the Government to increase power generation through renewable energy sources in the future and the same are continuing. These include the following:

* Fiscal and financial incentives such as, capital/interest subsidy/generation based incentive, accelerated depreciation, nil/ concessional excise and customs duties;
* Generation Based Incentives Scheme introduced for wind power and solar power to attract private investment by independent power producers not availing accelerated depreciation benefit;
* Directives under Electricity Act 2003 to all States for fixing a minimum percentage for purchase of electricity from renewable energy sources;
* Preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year.

The Jawaharlal Nehru National Solar Mission was initiated in January 2010 to enable large scale capital investment in solar energy applications; Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission.

This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply to a question in Rajya Sabha.