The Hindu Business Line : Mandatory solar power purchase proposed

(From left) Mr Ramesh Kymal, Chairman, Renewable Energy Council, CII-Sohrabji Godrej Green Business Centre; Mr Pramod Deo, Chairperson and Chief Executive, Central Electricity Regulatory Commission; Mr Carmine D’ Aloisio, Minister-Counsellor for Commercial Affairs, US and Foreign Commercial Service; and Mr Christodas Gandhi, CMD, Tamil Nadu Energy Development Agency, at the ‘Green Power’ conference in Chennai on Thursday. —

Our Bureau

Chennai, June 18 Electricity regulators are considering mandating the purchase of a certain percentage of solar power within the scope of the ‘renewable energy obligation’ to encourage the development of solar power, said Dr Pramod Deo, Chairman, Central Electricity Regulatory Commission.

At least 15 State Electricity Regulatory Commissions have set minimum standards to ensure that a portion of power purchased by the State electricity boards is from renewable energy sources. But the focus has been largely on wind energy generation and solar energy is yet to be tapped to significant levels. The main constraint is the wide variation in estimates of cost of solar energy, according to Dr Deo.

Addressing Green Power 2009, an international conference and exposition on renewable energy organised by the Confederation of Indian Industry, Dr Deo said the regulatory commissions were considering carving out a minimum purchase obligation for solar power within the existing renewable energy purchase obligation.

Mr Carmine D’Aloisio, Minister-Counsellor for Commercial Affairs, US and Foreign Commercial Service, said US companies were interested in bringing in energy efficient technologies into India and partner with Indian companies. The potential in renewable energy sector, particularly solar energy, has created an environment of ‘get-ready’ and anticipation. The Centre has also encouraged development in this sector through appropriate policy.

The gap is in mobilising finance and getting projects off the ground. There is an information gap between the bankers with whom the industry and policy makers have to increase communication. The Power Purchase Agreements between the renewable energy producers and the distribution licensees have also to be strengthened to make them more bankable, he said.

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