The Hindu Business Line : Karnataka proposes to treble renewable energy capacity in 5 years

Bangalore, Nov. 6 Karnataka proposes to generate an additional 4200 MW of power from renewable sources such as wind power, cogeneration and small hydro power projects over the next five years.

This is an increase of about 175 per cent, or nearly three times, in relation to the current level. Besides, the State also aims to save about 900 MW through energy conservation and efficiency measures, according to the draft renewable energy policy.

The Karnataka Renewable Energy Policy 2009, prepared by the nodal agency for promotion of non-conventional energy sources - Karnataka Renewable Energy Development Ltd (KREDL) - is awaiting the approval of the State Cabinet.

“The policy has been created in consultation with various stakeholders and is before the State Cabinet,” said Mr Shivanandamurthy, Managing Director, KREDL. The KREDL has taken inputs from Gujarat and Rajasthan in formulating the policy.

Currently, generation from renewable sources stands at 2550 MW. KREDL envisages capacity addition of over 800 MW every year for the next five years.

Bulk of the additional capacity to be added over the next five years would be in the wind sector. KREDL is targeting generation of an additional 2,769 MW from wind projects, while the current installed capacity stands at 1,368 MW.

The policy targets to add 500 MW from the mini and small hydro projects where the current installed capacity stands at 416 MW.

It also envisages power output of 500 MW from the biomass and biogas projects, where the installed capacity stands at 81 MW. Cogeneration projects are targeted to add 281 MW, while the solar photovoltaic projects were expected to add 100 MW. The current installed capacity in cogeneration stands at 535 MW.

The draft policy estimates that to generate an additional capacity of 4200 MW renewable energy power by 2014 an investment of Rs 22,950 crore would be required at current prices.

In the past three years, an average of 300 MW capacity addition has brought in Rs 1,500 crore investments by the private sector.

Private investment

Through the proposed policy, KREDL hopes to attract an additional investment of Rs 500 crore annually from the private sector, while the solar initiatives were expected to attract Rs 500 crore during the policy period (till 2014). It also hopes to attract an investment of Rs 5,000 crore from the profit-making public sector undertakings.

KREDL also suggests setting up of a special purpose vehicle to bridge the shortfall in finances to fund the various renewable projects. It envisages setting up Akshaya Shakthi Nidhi or Green Energy Fund of Rs 500 crore to fund various projects besides suggesting that the government could also raise Renewable Energy Bonds to the tune of Rs 1,000 crore.

More Stories on : Non-conventional Energy | Karnataka

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