Windows of opportunity

Fdia Windows of

Opportunity 1REDA and the role of

renewable energy in lndia Current situation India’s

energy

development

has

been

put

the

ever-increasing

(energy

under

of about

mismarch

of resources

uniform

growth by

5.9%)

curve.

India

in

gap

and

with

The

the

with

supply

coupled

the

a non-

chalienges

management

development

of the power

dimensional

and

from

pressure

demand

shortage

faced

programme

severe

sector

they

stem

demand

for

and

are multi-

fundamentally

the following:

Increase rapid

in

industrialisation

energy

and

due

growing

to

pop-

ulation Constraint

of

enhancing Limited and

reserves

T

independence expansion

in the country

seen

sources.

The use of

energy has increased

over this period.

Especially

faster growth in the economy

energy energy

for

1999-2000)

demand. use

in

and

Nevertheless, India

(400

ten fold

in the last 10

years where India has witnessed

growth

an

with a shift from non-com-

mercial to commercial commercial

have

in the total energy use

relatively

(6.4%

GDP

subsequent per capita kWh/year)

remains very low and growth in the future

12

will reqnire a large increase in commercial

100,000

ly dominated

by thermal

plants. Renewable increasing energy

in

the growing

India.

Managing

Indian

Development

Dr

V.

Director

of

Renewable Agency

situation

(IREDA)

Energy describes

and how IREDA

a key role in stimulating

of renewable

May 2001

and large hydro

energy is set to play an

demand

the current playing

which is large-

role in satisfying

Bakthavatsalam, the

Mw,

RE

energy technology.

‘-

“.

www.re-focus.net

to these

is

uptake

fossil on

Rapid

development

the energy

focuses

on:

of all forms

conventional

fuels

foreign

imports

challenges,

that was evolved

gy, both

energy. India today has an installed capacity of about

and

burden

policy

for

facility

due to increasing

In response

years since India’s

resources

of coal

consequent

exchange

he fifty-three

financial

this infrastructure

and

of ener-

non-conven-

tional Promoting dent

energy

conservation

management

Environment

and

effi-

of demand

conservation

and

sustain-

able development Development tems based

of decentralised on renewable

ly for use in rural

It is estimated demand

supply

additional during

the

sources

that

next

sys-

especial-

areas

to meet

gap, a capacity

100,000

energy

MW 10

would years,

the projected of around

an

be required which

is

a

FEATURE

challenging

took

capacity more

of

than

Another

about

50 years

aspect

100,000

nario

is the marked

disparity

consumption

pattern

segments.

only

37 per

have

electricity

of

It has been

cent

83 per cent 80,000

ables.

of the

urban

which

between

the and

observed

that

More

than out

18,000

be economical

are

areas

to extend

biomass

in not

The

challenges

offer India form

a window

of renewable

of opportunity

energy

and diversify

its energy

development

path

ability,

sources supply

towards

technical,

greater

Over

the

operational

last

15 years,

and economic

ty production

renewables

from

progressively

demonstrated

success.

Furthermore,

energy

technologies

of being

several are now

able to stand

foreseeable

future,

surge

account

on their

declining

costs,

rising

steadily

while

cost

of

is a range

tions,

particularly such

as well

renewable

developing

signs

and

in renewables

is on

icy

and

Government

the

Government

technolo-

by a variety

measures

of pol-

from

administered

the nodal

of India, of policy

promotion

a

and

The

the by the

Energy Ministry

entrusted

of the

with

making,

the

planning,

co-ordination

of

various

capacity

The Government tions

required

has proposed to achieve

ing decentralised sets medium

l

energy

goals

terms,

renewable

supply

policy

and generating

which

in the new power

translate

and programme rural

to setting

energy

grid quality

till the year 2012,

for renewables

this would

energy

the minimum

interven-

needs,

power.

provid-

The draft

also

are:

capacity

projected

up of about

upto

12,000

MW

20 12.

through

renewables. l

Deployment

of solar water

l

Electriftcation

l

Deployment

l

Coverage

l

Setting

heating

by renewables of 5 million

of 30 Million up of further

systems

in one million

of at least one quarter

solar lanterns households

3 million

family

of 18,000

and 2 million

through

Chulhas

lighting (wood

villages

power

capacity

Another

170 projects

Renewable

Energy

Energy

programme

cooking

energy

gation,

drinking

Integrated

Rural

Plan

for their

2012

aims

employment

to all households;

to provide

and for rural electrification energy

at: more and

female

empowerment;

in the Renewable

availability

cost effective

energy

for water

and all round

rural

development

of minimum pumping, through

irrithe

Programme

RE

www.re-focus.net

power

under

ranks

fifth

generation

biomass

projects

MW based

with

370

capaciIn addi-

1719

biomass

gasifier

systems

MW

capacity

are now

under

the

Solar

SPV Power

ual systems

with

date

plants

grid areas.

MWp

have been

power

Photovoltaic

Plants

In addition,

plants

quality A total

with opera-

and individcapacity

have

18 MWp

capac-

exported.

These

have

power

helped

to rural

of 3575

SPV

in and

Water

Systems

have

been

installed

for agriculture

and

related

uses.

Solar

popular

and

water

heating

a total area

47

pro-

co-gener-

MW

tion,

Under

in

has been

implementation.

Programme,

than up in

in the world.

of 273

including

of the

more

35.50

ing

2001

now

capacity

a capacity

capacity

has come

India

energy

the biomass

tion.

MW.

feature

is that

capacity

sector.

systems

of 550,000

has already

now on to make

May

of installed notable

programme

of wind

remote participation

in terms

of installed

Pumping The

with

1341

capac-

75%

providing

plants

about

energy

energy

stand-alone

stoves)

of

MW. The

ty are now

small hydro

projects

Wind

second

while

consumption.

capacity,

498 MW

wind

ation,

especial-

with

1267

installed

into power,

implementation.

with

the private

it was

energy

387

ity are under

the

marked

when

for captive

aggregate

follows

year

a

like decentralised

of installed

with

tops

is

of

to conventional

generation

In terms

about

cent

it has not matured

applications

ity power

systems

last

supplementary

been installed.

unelectrified

solar home

improved

size biogas

homes

over Though,

the present

(totalling 3 per

ly for niche

gramme,

of meeting

to be achieved

a 10% share

In absolute

draft

the goals

off-grid

term

Achieving

Plan 2012

and

December

scene,

which

alternative

Under

Energy

is about

1.5%.

terms

Renewable

energy

but a viable

the

world.

energy

installed

a major

is the

I lists the

in India

as on 31st

renewables

MW)

only

among

Non-conventional

responsibility

imporis

of the

of India,

(MNES),

of the

Programme

from

improvement

wastes.

extensive

support

Sources

protection

3000

gies have been facilitated

fossil fuels are show-

awareness

building

use of renewable

of

environmental

heating,

most

to date

In the national output

from

Table

energy

2000.

heating,

recovery

energy.

of renewable

achievements

as air and water solar

of renewable

potential

centres

Energy

the

Ministry

addition,

applica-

and industrial

as also their

In

to util-

aspects

urban

countries

increased

The

tech-

be of interest

as energy

municipal

A

energy

in India’s

India’s Renewable

in the

networks.

of ‘demand-side’

process

largest

own

trends.

growing

tance

been

subsidies.

of these developments,

should

ities,

increasing

showing

without

of interest

electricihas

with

distribution

Indian Renewable Energy Programme

the

viabil-

off-grid

SPV Water Pumping ~ystem,r%anced by IREDA

of

area for renewable

which

urban,

social

estab-

maintenance and

niche

at

centres,

on costly

and

designs,

sustainand

and

ing

saving

industrial

and shift the

ity of grid-connected

recent

generation,

actual

and industry,

to expand

as well as environmental

responsibility.

in the

electric

load

near

nologies scene

now

have

or

major

energy

and

power

ties of distributed

transmission

of the present

as wind

also offer possibili-

lishment

Why renewable energy?

such

Renewable

thereby

to these

villages.

tech-

connected

hydropower

based

technologies

it may

the grid

small

a siggenera-

Several

generation

matured.

situated

and

create

grid

OPPORTUNITY

renew-

in the

for

power

to

can

of electricity.

power,

compared

households.

far flung

tion

OF

favouring

impact

nologies

households

are yet to be electrified

nearly and

nificant

sce-

in Urban

rural

factor

Renewables

energy

connections

Villages

remote

major

to install.

of the Indian

energy Rural

the MW

task in view of the fact that

current

- wlNDows

systems

are quite square

been

meter

installed.

collector Efforts

the use of solar water

mandatory

in new

to

are heat-

buildings.

13

6%

FEATURE

-

WINDOWS

the

OF

last

10

Energy

OPPORTUNITY

years,

have

been

R&D,

(NRSE)

Renewable

Technologies

in

promoted

through

Demonstration

sub-

sidies

and

fiscal

out-

lined

below:

incentives

l

Income

l

Accelerated

l

Concessional

Duty/Duty

up

Custom

Free Import

Energy

Subsidy

power facilities

l

Sales Tax Concession

l

Electricity

l

Demand

has already

cycle

power

been

accorded

integrated

solar

to industrial

project

in Rajsthan

financial

assistance

from

Bank/GEF

and

Another biogas

power

units

from

renewable

energy

of new

Million. wood addition rural

now

of 32.89

have

also

to improving

people,

in avoiding

tonnes

of carbon

needs, 3.12

Million been

programmes emission

In

of life of have

also

of millions

of

per year.

Policy initiatives for renewable energy Though

remarkable

in India

in the implementation

able energy

programme,

be achieved

to realise

renewables. ronment renewable

14

progress

A favourable exists in India energy

sources

with as its

motto

and

lowing

objectives:

has to

fiscal/policy

envi-

It

with

a revolving

fund

promoting

for

developing renewable

new sources

of energy. l

To assist

in the

rapid

commercialisation

for development

of

new

economically.

In

sources

May 2001

and of

RE

of

renewable energy

www.rc-focus.net

Renewable An

has already

A capacity

addition

supported.

of

The

pro-

have also result-

of 927

of

has

projects.

Millions

coal

performance

000

MTCR

replacement)

of

It has

every

per

the

CT1

World 1999

climate

friendly

into

the developing

record

forward

for sustainable financial

Bank

the

(SDC), KfW

8 Achievement

(WB), /PPPi

(btrl,

Development

(DANIDA),

of the

by

co IREDA.

World Bank .. Paclhty

International

(ADB),

agen-

this global

development

assistance

bnvironment

Government

attention. bilateral

to join

movement

Co-operation

especially

of achievements

and

extending

Agency

the deployment

global

multilateral

Danish

Climate

in recognition

world.

track

include

Climate

technologies

attracted

come

IREDA

from

Paris

to accelerate

and

Global

each

inception.

Award

They

been

since

Initiative,

cies have

has

a profit

year

Technology

also

IREDA

declared

Technology

1: RE Potential

the fol-

To operate

was

Limited

Energy

for Ever”

of

Indian

control

“Energy

and

Agency

the

(MNES)

and

of

Table

the

policy

IREDA

1400

by IREDA

tonne

Renowned

for

sector

the

for

abatement

IREDA’s

with

of Non-

conventional

l

created. Public

Sources

and

potential

under

of the Ministry

of a renew-

a lot more

a

Company

1987,

has been made

the true

was

as

Government in

Development

(IREDA)

administrative

improved

provided.

the standard

these

helped

energy touched

Government energy,

Energy

incorporated

conerns

(metric

has

renew-

energy

to the rural

the

Renewable Limited

rural

has

A total stoves

conserving/generating

with

World

of

and

and

development

reference

and

of Rs.44000

Efficiency

has been

received

subsidy.

sources

State the

development

to meet

number

particular

MW

and

generating

the potential

2001,

of Rs.19600

of its efforts

Capital

to implement

KfW, Germany.

notable

projects

whose

to set

(approx.) and Energy

The

consumers

establish

combined

energy

of operation,

to the tune

Energy

outstanding.

concession

cut

national

up a 140 MW

to

year.

Tax exemption

who

able

in

projects

14 years

February

Million

ed in the

and banking

Realising

support

conservation

resources

jects supported

buyback,

significance

Approval

28th

1600

Indian Renewable Energy Development Agency Limited (IREDA)

by IREDA

financial and

been disbursed.

sources

1.59 MW Wind Farmjnanced

to

amount

From State Governments

l

of technologies NRSE.

the initial

pledged

Depreciation

Capital/Interest

offered

extend

efficiency

During

Tax Holiday

wheeling

To

l

through

schemes

From Central Government

l

the country

Projects

by Government

l

To assist in the upgrade

l

supported

and

systems

technologies,

d evices

India

Swiss

Development

Asian

Development

(Germany)

Netherlands. in lndia

and Several

FEATURE

Sagar Islands Sagar Island, Bengal about

: A PV Success

about

90 km south

in eastern 160,000,

India.

non-availability age transmission

generators

After Island

however,

of aggregate

A portion

under

co-operatives. of Rs. 1,000 loan

region

and

of West

a popularion

with

high costs.

is the

high volt--

Till 1996,

were used on this island and maintenance

only

to sup-

costs of these

generation

For obtaining

requirements

Presently,

plants about

1,400

solar photovoltaic

from tariffs

W load,

thus

Island

plants

catering

plant,

from

is available

are being

and individual constitutes

Entrepreneurship

Programmes

under

was commis-

through

power

grammes

and

for weaker

is also being from

rhe

an initial

contri-

the domestic

and

from

of 250 the com-

solar home

co.;-

to

from

has taken

several

IREDA

initiatives

renewable

energy

in the country.

These

include:

l

Energy Efficiency played

& Conservation

in advancing

energy operations

renewable

Projects:

energy

In view of the successful

projects

and

and energy efficiency projects,

of Credit to IREDA

for developing

manufactures

the World Bank has extended a Line

and financing

energy efficiency

and vendors, reforming

and private electric utilities. IREDA industries like cement,

has already sanctioned

sugar, paper, textile, steel/sponge

l

Technology

Side Management

Commercialisation

Programme

projects

(ESCOs),

in the

energy end-

state electricity boards (SEBs) about Rs. 1660 Million for

a number of projects under its energy efficiency and conservation generation and Demand

has

between its renewable

the synergy

country. Potential borrowers include Energy Service Companies users, equipment

role IREDA

programme

covering

iron, heavy chemicals,

power

in electric utilities.

Fund: This fund has been set up by the Government

of India with an initial corpus of Rs.20 Million and is aimed at catalysing investments for accelerating IREDA l

of emerging

to entrepreneurs

Energy

by IREDA and Energy

by IREDA

(Including

Umbrella

Financing

Governmental

through

Promotion):

This (NGO),

which

would

000

Collecror

India

be operated

by Non-

Self Help Groups and other agencies, provides

during can

of rhe private favourable

investment available much

for such

more

ing the true

has also introduced

through Biomass/

the scheme to assist production

and Vehide applications

of Fuel

and also for Ethanol production

to

earth.

May 2001

RE

www.re-focus.net

rhe

and

opportunities

to be done

However, in harness-

of renewables

IREDA are

This

as a consequence

and

potential

of

in

and

in the

other

working

net-

hard

to

the target-s ser up for the year 2012

reduce

which

Sugar

growth

frameworks

technologies.

remains

Other Schemes:

IREDA

sector,

opt-ions

achieve

Cells for power production

be

to the participa-

policy

devices

energy and energy eff%ziency

IREDA’s

the last two decades.

agencies

renewable

Solar

with

technologies

be attributed

working

to end users for acquiring

of

to

substantial

energy

MNES,

financing

resources.

expected

this period

country.

micro

MW

to 976 000

Metres also

gener-

of 2993

renewable

has witnessed

Efficiency

of

envisage

of power

Conclusions

growth

has

Plan

Assistance.

country

This scheme

of coal through

equivalent

are

during

energy

Corporate

tune

Square

Area

installed

for giving

their products in local and overseas markets

scheme,

of coal 165

to the

generate

to 2009-10

to the

It is

rhe installa-

capacity

and

000 MT

MT

renewable

to make available financial assistance to manufacturers

Scheme:

Organisations

Export

projects.

1997-98

capacity

of

efficiency

IREDA’s

energy

1

sanction up renewable

MW

and generate

Market

Assistance

for

Plan

envisages

for setting

of the insrallarion

of

Development

proposal

for

arion

of the

Five Years

generation

to 200

Plans

particularly

it will support

projects.

an inte-

Plans

10th

support

tion

NRSE devices to enable them to promote

l

Renewable

technologies.

of the scheme.

This scheme has been introduced for retailing

energy

Five-Year rhe

Targets

products and services. been introduced

l

renewable

is one of the agencies entrusted with operation

Setting up of Energy Centres: a platform

l

the commercialisation

form Five-Year

the

1700

inforthrough

National

targets

equivalent

conducts

are

in

Energy

Its activities

Million

of

these

also

and

of power

tune

areas.

newsletters and

Plans

that

projects

campaigns

and energy

tion

to promote

two

IREDA’s

ambitious

concessions and

and backward

and

During

envisaged

New Initiatives

special

of society

Energy

of rhe

MNES.

energy

IREDA

selfpro-

publishes

Annual

rural

NRSE

media.

dovetailed

encourages

decentralised

various parr

Ir also

participation

and

fields

Rs.63350

on the island.

agency

provides

(2002-2007),

lighting

50% of the total electricity

more

self-employment

dissemination

gral

of them

women.

and

marion

and

daily.

SPV capacity

Developmenr

to

Renewable

Efficiency

Ic proits vari-

a number

sections

also

meer-

through

ro be ser up in remote IREDA

promo-

business

workshops.

(EDPs),

reliance

for 5 hours

family-owned

about

ous

The

the local rural

benefited

and

entrepreneurship

development,

Rs. 120 for a 100 W

to both

seminars

motes

of women.

has also been availed.

have an aggregate

on rhis island

electricity

range

ings,

Sagar

plants

are also in

various

through

more

assistance

basis through

conducts

encourages

850 consumers

soft loan

the power

The power

on Sagar

about

Programme

The monthly

such

of the island

plants,

a connection

families

power

The solar generated

scheme

on a commercial

of electricity.

installed

supply

plant

eight

and serving

Development

for a 1,000

power

At present

For six of rhese

operated

has to be made.

The solar power

water

Market

are being

rhe firsr 26 kWp

Areas

also

initiatives

devoted

identified Focus

IREDA tional

exclusively

has an adverse

as MNES

as one of rhe High

are operational

plants.

Bank

for the better

and grants-in-aid

rhe pipeline.

of

of the local population

to link the island

capacity

19 consumers.

of 213 kWp

to Rs. 1200

small commercial

1996

only

power

plants

bution

munity

with

the World

electric

systems.

kms.

and extremely

in Wesr Bengal

of the drinking

these

The solar power

connected

impossible

changed

In February, village

through

kWp.

Region

SPV capacity

in 15 villages.

IREDA

problem

But the operation

the situation

Programme.

at Kamalpur

energised

square

and the use of diesel fuel for power

and the Sundarban

the SPV

OPPORTUNITY

impact.

1996,

sioned

sumed

high

in the Sundarban

300

main

problems

400 consumers.

were quite

environmental

The

sets of 300 kW aggregate

to about

OF

lines-of-credit

is situated

It is practically

grid due to technical

a few diesel generator ply electricity _

of Calcurra,

over 32 villages.

of electricity.

WINDOWS

story

It has an area of about

spread

-

dependence

would Contact:

result

on in a clean

fossil and

fuels, green

[email protected]

15