(a) whether the Government proposes to formulate an action plan to attract investors in the
Renewable Energy Sector by providing certain incentives;
(b) if so, the details thereof;
(c) the total installed power generation capacity of renewable energy sources in the
country at present, sector-wise;
(d) whether the Government proposes to make mandatory the sale of power produced from these sources to the big power consumers; and
(f) if so, the details thereof?
THE MINISTER OF NEW AND RENEWABLE ENERGY (DR. FAROOQ ABDULLAH)
(a) & (b): The Government is already encouraging private participation in the renewable
energy sector through a mix of fiscal and financial incentives and other policy/regulatory
measures. These include capital/ interest subsidy, accelerated depreciation and nil/
concessional excise and customs duties. Under the Electricity Act 2003, it has been made
obligatory upon State Electricity Regulatory Authorities to fix a minimum percentage for
purchase of electricity from renewable sources taking into account local factors. Preferential
tariff for grid interactive renewable power is being given 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 have been issued
recently. Most recently, the Government has approved a National Solar Mission that is expected
to enable large-scale capital investment in solar energy applications.
(c): Around 15,539 MW grid interactive power generation capacity has been installed from
renewable energy sources throughout the country as on 31.10.2009. This includes 10891 MW
from wind, 2519.88 MW from small hydro, 2057.50 MW from biomass, 67.41 MW from waste to energy
and 3 MW from solar.
(d)&(e): Under the Electricity Act 2003, it is obligatory upon State Electricity
Regulatory Commissions to fix a certain percentage for purchase of power from renewable energy
sources in the area of a distribution license. Such percentage is termed as Renewable Purchase
Obligation. Accordingly, regulators in several States have issued orders for Renewable
Purchase Obligation varying from 1% to 10%.