Home > Money > Report

CERC renewable energy fiat a game changer

Promit Mukherjee / DNA
Thursday, June 25, 2009 3:12 IST
Email Email
Print Print
Share Share

Mumbai: The Central Electricity Regulatory Commission's (CERC) mandate to all state power utilities to purchase at least 5% of power from renewable energy sources by 2010 and 15% by 2020 is set to give a major thrust to the sector.

At present, about 4% of the total 1,40,000 megawatt power generation in the country is through renewable energy, with thermal taking the top spot followed by hydro.

Though the CERC's move may usher in huge demand for renewable energy, experts said, at current capacity it will not be possible to meet the regulator's targets.

RV Shahi, former Union power secretary and currently chairman, Energy Infratech, told DNA the target can be achieved only if hydro is included in the list of renewables. He said there is some gap in capacity generated and electricity supplied, which also has to be taken into account.

"Hydro currently generates 25% of the total power, but the actual electricity supplied is just 17%. On the non-conventional front, the power supplied is even less than 5%," he said.

Ajoy Mehta, managing director, MahaVitaran, Maharashtra's power distribution company, said, "Last year we achieved the 5% target of sourcing power from renewables which also included small hydro and this year we plan to touch 6%."

Currently, renewable power generated in Maharashtra is 1500 mw out of a total generation capacity of close to 8000 mw.

"We are proactively working at increasing the share of non-conventional energy in our total power consumption and hope to meet the target of 15% by 2020," he said. The major sources of renewable power in Maharashtra are small hydro, wind and bagasse, he said.

A high-ranking Union power ministry official said under condition of anonymity that the target is tough to achieve unless regulators pull up their socks. "Our current power generation from renewables stands at a mere 3% and the pace of growth is not sufficient to meet the requirement," the official said.

A major hurdle to this is that most of the renewable power generated in the country comes from wind energy which is concentrated only in some states.

"The targets can be met if the proposed Renewable Certificate Trading Mechanism is implemented by the CERC," said Debashish Mishra, executive director, PricewaterhouseCoopers.

He said the country adds close to 1500-1700 mw per year under renewables excluding hydro, and almost 1400 mw comes from wind. But wind energy is mainly located in states such as Tamil Nadu, Karnataka, Maharashtra and Gujarat.

If certificate trading mechanism is implemented then even if the states cannot purchase physical power, they can at least pay for the power.

This can be used by renewable-rich states to supply more through non-conventional to its customers.

He said though meeting 5% target by 2010 is tough but if strict measures are taken then even 10% by 2015 can be reached.

Double click an English word for Macmillan Dictionary definition
Copyright permission mandatory to republish this article.
For reprint rights click here
digg reddit google Facebook MySpace delicious

Going platinum
The preview of Sakti Burman's show of serigraphs was hosted by art collector Lavesh Jagasia on Monday at the Pundole Art Gallery
Girls wanna have fun
Wine connoisseur Shamita Singha hosted a wine appreciation dinner for some of her friends as she took them through a number of wines paired with a four-course meal.

Get daily news in your inbox and read it at your convenience.

D 910