& EQBusiness Financial problems. We are also taking steps to exploit non conventional clean energy sources such as solar and wind power, and also energy from the bio mass. It is proposed to double the renewable energy capacity in our country from 25000 MW in 2012 to 55000 MW by the year 2017. The pace at which we can expand our reliance on these new energy sources is constrained by the fact that they are more expensive than conventional energy. However, costs are falling. The cost of solar energy for example has nearly halved over the last two years, though it remains higher than the cost of fossil fuel based electricity. If the cost imposed by carbon emissions is taken into account, then solar energy is more cost effective, but it is still more expensive. However, with costs expected to fall further in the years that lie ahead, it will soon be fully competitive at the margin. Counting on the probability of falling costs in this area, we have launched a Jawaharlal Nehru National Solar Mission with the objective of developing 22,000 MW of solar capacity by the year 2022 covering both solar photovoltaic and solar thermal. The cost differential is being covered by different forms of subsidy and cross subsidy. A solar capacity of about 1500 MW has already been installed in the country, and an additional 10,000 MW will be implemented by the end of the 12th Five Year Plan, ending in 2017. Solar energy has the advantage of permitting decentralized generation which is cost effective in serving people in the remote rural areas where extension of the grid would be rather expensive. As we expand our reliance on solar energy, we are keen to ensure induction of the best technology and also to encourage domestic production of the equipment needed. India is potentially a large market for production of such equipment. It is also a potentially competitive and attractive production base for supplying other countries. We therefore strongly encourage global manufacturers to set up production facilities in this area. As part of the Solar Mission we are setting up a National Institute of Solar Energy, which would be a global level R&D centre, which could draw upon international cooperation as well, to enable the cre¬ation of more affordable and convenient solar
power systems, and promote innovations that enable the storage of solar power for sustained, long-term use. It is expected that this Institute will be in position by the year 2015. India’s wind potential in both onshore and offshore areas is being re-assessed to draw a long term plan for exploiting this source of energy. It appears that our potential for harnessing wind power is much larger than was earlier anticipated, though the potential is concentrated in certain parts of our country. Expanding grid interactive renewable power requires supporting improvements in technologies of grid management to deal with the expected fluctuation in generation from these energy sources. There are fluctuations within the day as in the case of solar energy, and also fluctuations over seasons in the case of wind. How are we to manage a system where important components fluctuate significantly is an important focus area for our Government. Battery storage is one solution and pump storage another. Here too costs are critical but there is scope for cost reduction. We are keen to learn from international experience in this regard. The Government has also launched a National Mission for Enhanced Energy Efficiency to focus on energy efficiency in sectors ranging from appliances, buildings, transport and industries. The Mission focuses on establishment of standards and also on market related incentives based on the imposition of mandated efficiency standards in selected industries with tradable energy certificates incentivising companies to do better than the standard. I am sure other countries participating in this Ministerial have similar initiatives. We are keen to learn from their experience and would be happy to share ours. We are in the process of raising fuel efficiency standards in our transport sector. We have already decided to mandate 5% blending of ethanol in the motor spirit. We are also launching a National Mission on Electric Mobility and I am happy to state that the Government of India will be joining the Electric Vehicle Initiative of the Clean Energy Ministerial. One of the critical issues in promoting expansion of clean energy is financing of
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green energy. Investments in green energy are subject to technological, commercial and regulatory risk. For the moment green energy is not viable on its own without subsidy or regulatory incentives. Investors obviously need assurance that these incentives will continue. Market forces alone will not provide sufficient financing in this environment unless the risks of policy change are appropriately addressed. I am happy that the Ministers have scheduled a separate session on financing. We need to know more about what each of us is doing and this Ministerial is an excellent platform for experience sharing across the countries. These are early days in our effort at developing a workable strategy and much remains to be done. I have no doubt that your deliberations will go a long way in developing a workable agenda for energy efficiency and expansion of clean energy for the world. I wish you all success in the course of your deliberations over these two days and I hope you will all enjoy your stay in New Delhi, and perhaps even get a chance to see some of our country.”
Allocation for Renewable Energy A Gross Budgetary Support (GBS) of Rs.1521 crore has been provided to the Ministry of New and Renewable Energy (MNRE) during 2013-14, in comparison to GBS of Rs. 1385 crore and Revised Estimates of Rs. 1150 crore during 2012-13, for development and promotion of renewable energy activities. An expenditure of Rs.1106.79 crore was incurred by MNRE for development and promotion of renewable energy sources, which is about 80% of the GBS and over 96% of the Revised Estimates for the year 2012-13. Against the target of 4125 MW grid connected capacity and 126 MW offgrid applications, the achievements have been 3163 MW and 147 MW respectively during 2012-13. The Government is continuing various incentive schemes to promote the new and renewable energy sector generation based incentives, viable gap funding etc. to further support the Renewable Energy sector. This information was given by Minister for New & Renewable Energy, Dr. Farooq Abdullah in the RajyaSabha. EQ INTERNATIONAL - April 2013
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