The Hindu Business Line : `Frame national policy on renewable energy soon'

The absence of a national policy on renewable energy is hindering the development of the domestic renewable energy sector, according to The India Energy Forum (IEF).

The forum apprehends that the generation target of 20,000 MW by 2012, from the existing 6,000 MW set for this sector, is unlikely to be achieved unless a national policy is immediately put in place to attract private investments from within the country and abroad.

Incidentally, a policy draft is still pending before the Government for finalisation.

Suggestions

The IEF has recommended that legislative measures be taken for the statutory purchase of at least 10 per cent of the renewable energy generation at discounted rates by power distribution companies.

This apart, producers of renewable energy should be permitted to sell energy to any person. It is suggested that aggregating facility be provided to assist small-size renewable energy projects to market their power to big monopoly buyers, by establishing a Renewable Energy Trading Company (RETC), somewhat akin to Power Trading Corporation (PTC), and also permit the private sector to trade renewable energy.

The Eastern Chapter of the forum, jointly with the Bengal Chamber of Commerce and Industry, organised an `energy summit 2006', on "Doubling the capacity by 2012 - the roadmap & new issues.' The summit urged the Centre to provide preferential purchase price to renewable energy producers to compensate for the disadvantages suffered on account of small size, location, high capital cost and technology. This sector should also be provided free wheeling/transmission facility from their generating plant bus-bar up to the customer's receiving point. The long-term aim should be to enact a separate renewable energy Act, thereby ensuring continuity, uniformity and transparency in policies.