Cement, Energy and Environment

policy framework have evolved rapidly in recent years. In the last decade, the renewables sector has moved from the fringes to being one of the major sources of energy. This has been achieved with a combination of a supportive policy framework and technological advances, which have made it commercially viable and attractive for investment. The move towards renewables has reduced the carbon footprint from generation, and the potential benefits of greater substitution of conventional energy by renewables are evident. Renewables have the potential to reorient the way we think about energy. The viabil ity of small or micro renewable plants and the rise of off-grid solutions can open up new ways to look at providing energy at a local level. Let us take the example of the poor man's fuel, kerosene. The government has heavily subsidised it to keep it affordable for weaker sections of society. The subsidy is around ."20,000 crore. If this subsidy could gradually be transferred to build generating pia•• ts supported by adequate infrastructure for renewable energy, like solar, wind and other sources, one could reduce the dependence of a large section of the population on kerosene. In the last decade, the renewables sector has grown to 32,000 MW. However, recently, it has faced policy challenges . Renewables, especially wind and solar, have recently achieved a meaningful scale, but need support from policy. A few big-ticket measures could help. These include dedicated evacuation infrastructure linked to the national grid to allow optimum utilization of renewable power, and to reduce the impact of geographical factors in the renewable potential of each state. We also need to move towards market– determined pricing, adjusting for the inherent advantages of large conventional power stations. An area needing immediate focus is the Renewable Power Obligation (RPO) framework, which was designed to encourage state electricity boards (SEBs) and captive consumers to use renewable energy. We need to implement the RPO by a carrot-and-stick policy, by recharging the market for Renewable Energy Certificates (REC), the tool for implementing the RPO framework and charging penalties for ' noncompliance by SEBs and consumers. This will create a viable market for renewable energy The sector needs pricing certainty on RECs beyond 2017, to invest in addition of capacity. We also need implementation of open access in the true spirit of The Electricity Act, with competitive pricing to allow unrestricted national transmission of renewable power. Alogical follow– up would be the complete integration of large renewable plants in the national grid with scheduling and forecasting to foster effective uti lization of renewable power. The renewables sector has matured and is moving towards becoming a major participant in the energy landscape. Now, policy has to step up to enable further growth. The sector needs the support of strong institutional, financial and legal mechanisms. A move in this direction will go a long way in achieving the goal of an energy self– reliant India by 2050. Courtesy: The Economic Times, 18.06.2014 Pg. No. 14 PUSH CLEAN ENERGY WITH INNOVATION, TECHNOLOGY At the end of January this year; a group of MPs submitted an expert report on renewable energy to the Prime Min ister. According to the report', India today has 75 million households without access to electricity. Per-capita consumption in rural households stood at only 8 units per month compared to 24 units in urban households. In 2001- 02, the government pledged to provide "electricity for all by 2012", a target that was later deferred to 2017. We need to meet our energy demand, while focusing on reduction in emissions. This must be achieved by planning power generation on a fuel mix while improving efficiency and controlling emissions through use of technology and clean sources of energy. The last few years have seen an increasing thrust on renewable energy generation. While the total medium-term potential, say; by 2032, for power generation from renewable energy sources 'in India is about 1,83,000 MW; the 12th and 13th Five- Year Plans have envisaged an additional capacity of 18,500 MW and 30,500 MW from renewable sources respectively. The government has also offered various incentives to help the sector, but there are challenges to be dealt with. The National Action Plan on Climate "Change has set a renewable purchase obligations (RPO) target of 15% by 2020. The RPO is the minimum percentage of the total power that electricity distribution companies and some large power consumers need to purchase from renewable energy (RE) sources. RPO creates a minimum market for renewables in the absence of pricing externalities of conventional power generation. 25 •