Cement, Energy and Environment

However; the state electricity regulatory commissions set year-wise tar gets. Though most states have set RPO targets for solar and non– solar renew able energy, compliance is low. To address the mismatch between availability of RE resources in the state and the requirement of the obligated entities to meet the RPO, the government introduced the Renewable Energy Certificate (REC) mechanism. The REC programme is a good initiative and encourages the optimum use 'of renewable energy sources . In wind energy, Tamil Nadu, Karnataka, Maharashtra, Gujarat, Rajasthan and some parts of Andhra Pradesh and Madhya Pradesh are resource-rich. While the discoms can meet their RPO' in these states by buying wind power, another state that does not have wind or solar generation or potential can trade through the REC mechanism. Under the REC mechanism, projects are set up in the vicinity of potential sources and developers are given a choice to either sell this power at the feed- in tariffs or sell it to the state at the average procurement price, comprising all sources of energy. There are various challenges related to the infrastructure of renewable energy generation and transmission. Wind and solar power require land. Land acquisition is getting more and more difficult and one needs to be close to the evacuation point. Due to the short gestation period of RE plants, the transmission has to lead generation and needs upfront investment. The basic technical challenge comes from the variability of wind and solar power that affects the load balance, varying demand for reactive power and impact on voltage stability. The Indian grid suffers due to lack of adequate infrastructure for transmission and distribution. The condition is even worse for the southern region that has seen limited capacity additions and is connected asynchronously to the rest of the grid. Adoption of automation and monitoring systems in transmission and distribution systems is essential. There is also a need to focus on smart infrastructure to reduce energy deficit. In addition to the lack of infrastructure to evacuate renewable energy power, there is also lack of communication systems to capture real-time RE generation data. Analysts suggest that India's energy demand is expected to double by 2035. With the need for power coupled with the requirement to meet emission reduction targets, it is imperative to increase the fuel mix in the country: Renewables contribute only 17% to our power requirements against 59% generated through coal. Despite the challenges, there is immense potential for the renewable sector in India. Courtesy: The Economic Times, 13.06.2014 Pg. No. 14 INDIA TO SET UP TWO RENEWABLE ENERGY FIRMS Plans are underway to form a pair of state– owned joint ventures (JVs) that will oversee the construction of renewable energy projects, contributing to India's energy security and reducing reliance on conventional sources of fuel such as coal. The oil and renewable energy ministries are working on the proposal, which sees them setting up one JV to oversee large-scale, grid-integrated projects and the other for off-grid projects, according to documents reviewed by Mint. These new public sector units (PSUs) will, in turn , be JVs between state-owned oil sector firms such as Indian Oil Corp. Ltd (IOC), Bharat Petroleum Corp. ltd, Hindustan Petroleum Corp. ltd, Oil and Natural Gas Corp. ltd (ONGC), Oil India Ltd and Solar Energy Corp. of India and the Indian Renewable Energy Development Agency. While one of the JVs will be led by ONGC, IOC will lead the other. The initial funding for the new firms will come from the JV partners that will implement the projects. The money they put in such projects will be considered part of their corporate social responsibility (CSR) contributions. Under India's new companies law, corporate entities are supposed to spend a certain percentage of their profit on CSR, essentially charitable activity. A government official confirmed the plan. "The project report for the joint venture companies has been prepared by Engineers India Ltd. Even some projects have been identified for development by the new firms. A background note on the same has been prepared," the official said on condition of anonymity. Spokespersons for IOC and Bharat Petroleum also confirmed the proposal. Queries emailed to the spokespersons for the ministries of petroleum and new and renewable energy, Hindustan Petroleum, ONGC. Oil India, Solar Energy Corp . and India Renewable Energy remained unanswered. India's National Action Plan on Climate Change recommends that the country generate 26 r L ' )r ,f •