In order to have more disposable energy, plausible approach hence would be to increase the enduse efficiency or to minimize the loss and meeting the energy demand through the renewable sources. A drastic growth in the power sector during post-independence is unable to meet every ones’ energy demand evident from about 74 million households still not having access to electricity and nearly 32,800 un-electrified villages in the country [8]. This necessitates a decentralized, low-carbon, reliable, efficient and renewable options for energy generation. Key features of RE based generation are;
Decentralized generation, reducing T&D losses; Easier voltage management at substation levels and minimized voltage fluctuations; Easier maintenance and reduced pilferages; Possibility of remote location electrification [9]; Scope for decentralized development at local levels with job opportunities due to the assured energy supply and availability of natural resources [10]; Lowered carbon emissions and scope for availing the benefits under clean development mechanism (CDM) as per Kyoto Protocol; Energy independence due to the reduced dependency of fossil fuels and imports.
In this perspective, power sector regulators, central policy makers with state authorities have taken many initiatives to encourage RE generation and usage in the country. Some of the prominent initiatives are discussed below. 2.1. Renewable Purchase Obligation (RPO): RPO is an agreement between Regulatory authorities and the consumers or power supplying utilities. According to this agreement Load Serving Entities (LSE), Open Access customers and Captive Power Plants (CPP) are required to purchase a fixed fraction of annual energy purchase from RE based power plants or they are required to generate that energy by their own. The RPO target is fixed for the energy purchase and not on the total installed capacity [11]. Table 1 gives the state wise RPO (Renewable Purchase Obligation for solar energy in % of total energy purchase) in India. Table 1: State wise RPO in India (% of total energy purchase) State
Order dated
Andhra Pradesh
Final- 26th July, 2010 Draft- 21th June, 2010 Final-16th November, 2010
Assam Bihar
201011
201112
201213
201314
201415
0.25
0.25
0.25
0.25
0.05
0.1
0.15
0.2
0.25
0.25
0.5
0.75
0.1
1.25
201516
201617
201718
201819
201920
202021
24
202122