Commercialization of Renewable Energy (RE) technologies is highly dependent on support from the government through mix of policy and regulatory instruments.
Electricity Act (EA) 2003
- Section 86: It promotes Renewable Energy (RE) by ensuring grid connectivity and sale of RE.
- Section 3: Central Government to develop a national policy for optimal utilization of resources including RE.
- Section 86: To fix a minimum percentage energy purchase from RE sources (RPO)
- Section 61: To determine tariffs for the promotion of RE
National Electricity Policy (NEP) 2005
- Section 5.2.20 of NEP promotes private participation in RE.
- Section 5.12.1 of NEP targets capital cost reduction in RE through competition.
- Section 5.12.2 of NEP states that SERCs should specify appropriate tariffs to promote RE and specify targets for RE.
National Tariff Policy (NTP) 2006
- A minimum percentage procurement should be made applicable latest by April 1, 2006
- A preferential tariff to be determined by SERC to enable RET’s to compete
- Procurement of RE by distribution licensee through competitive bidding
2011 Amendment in Tariff Policy: 0.25% Solar RPO by 2013 and 3% by 2022
Integrated Energy Policy (IEP) 2008
- Design of incentive structures that are linked to energy generated
- Regulators to mandate feed-in laws for RE, where appropriate
- Environmental subsidy for RE through cess on conventional energy generation
- FI’s should be encouraged to set-up Capital Funds for RE entrepreneurs
- Need to auction sites on public property for wind energy development
- To encourage solar thermal a higher premium of feed-in tariff needs to be provided
Chronology of Events
- 1982: Creation of Department of Non-conventional Energy Sources: It was an independent department for development, demonstration and application of Renewable Energy
- 1992: Creation of MNRE - The Department of Non-Conventional Energy Sources was upgraded into a full-fledged ministry.
- 1993: Introduction of MNRE Policy and Tariff
- 1994: Introduction of Accelerated Depreciation (100% AD for promotion of wind projects, changed to 80% AD in 1999
- 1995: National Wind Resource Monitoring and Demonstration Program
- 1999: Establishment of Center for Wind Energy Technology (C-WET)
- 2003: Electricity Act 2003
- 2004 onwards: Preferential Tariffs for RE from SERCs
- 2006: National Tariff Policy
- 2006: Integrated Energy Policy
- 2008: Introduction of Generation Based Incentives (GBI) for solar and wind energy
- 2008: National Action Plan on Climate Change (NAPCC)
- 2010: Jawaharlal Nehru National Solar Mission (JNNSM)