(a) whether the Electricity Act, 2003 mandates the formulation of National Electricity Policy and plan for the development of power systems based on optimal utilization of resources including renewable sources of energy;
(b) if so, the details thereof;
(c) whether a duty has been cast under the Act on the State Electricity Regulatory Authority to fix a minimum percentage for purchase of electricity from renewable sources; and
(d) if so, the follow up action taken thereon?
THE MINISTER OF POWER(SHRI SUSHILKUMAR SHINDE)
(a) to (d): A Statement is laid on the Table of the House.
STATEMENT
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF STARRED QUESTION NO.427
TO BE ANSWERED IN THE LOK SABHA ON 18-12-2009 REGARDING DEVELOPMENT OF POWER
SYSTEMS.
(a) & (b): Yes, Madam. The section 3 & 4 of the Electricity Act, 2003 mandates
the formulation of National Electricity Policy (NEP) and National Electricity Plan
(PLAN) for the development of power system based on optimal utilization of resources
including renewable sources of energy. The Sections are as produced below:
`Section 3: National Electricity Policy and Plan`
(1) The Central Government shall, from time to time, prepare the National
Electricity Policy and tariff policy, in consultation with the State Governments
and the Authority for development of the power system based on optimal utilization
of resources such as coal, natural gas, nuclear substances or materials, hydro and
renewable sources of energy.
(2) The Central Government shall publish the National Electricity Policy and
tariff policy from time to time.
(3) The Central Government may, from time to time in consultation with the
State Governments, and the Authority review or revise the National Electricity
Policy and tariff policy referred to in sub-section (1).
(4) The Authority shall prepare a National Electricity Plan in accordance with
the National Electricity Policy and notify such plan once in five years.
Provided that the Authority while preparing the National Electricity Plan
shall publish the draft National Electricity Plan and invite suggestions and
objections thereon from licensees, generating companies and the public within such
time as may be prescribed:
Provided further that the Authority shall –
(a) notify the plan after obtaining the approval of the Central Government;
(b) revise the plan incorporating therein the directions, if any, given by the
Central Government while granting approval under clause (a).
(5) The Authority may review or revise the National Electricity Plan in
accordance with the National Electricity Policy. (The Authority has been
defined as the Central Electricity Authority vide section 2(6) of Electricity
Act, 2003).
The Government has notified National Electricity Policy on
12-02-2005 & National Electricity Plan on 03-08-2007.
Section 4: National Policy on stand alone systems for rural areas and
non-conventional energy systems –
The Central Government shall, after consultation with the State
Governments, prepare and notify a national policy, permitting stand alone
systems (including those based on renewable sources of energy and other
non-conventional sources of energy) for rural areas.`
(c) & (d): As per Section 86 (1) (e) of the Electricity Act, 2003, one of
the functions of the State Commission is to `promote co-generation and generation
of electricity from renewable sources of energy by providing suitable measures
for connectivity with the grid and sale of electricity to any person, and also
specify, for purchase of electricity from such sources, a percentage of the total
consumption of electricity in the area of a distribution licensee`.
In terms of the requirement under Section 86 (1) (e), State Commissions
have specified/determined purchase obligation from renewable energy sources.
Information in this regard as available with the Secretariat of Forum of
Regulators (FOR) is enclosed at Annex.