Cement, Energy and Environment

, Trends in Costs The order for 2013-14, besides setting the benchmark tariffs, has also determined the changes in the capital cost of various renewable energy technologies in India in 2013-14 as compared to 2012-13. As compared to the previous order, the normative capital costs for more of the technologies have increased in the 2013-14 tariff order. For instance, the normative capital cost for wind energy projects has been increased from Rs. 52.5 million per MW for 2012-13 to Rs. 59 .77 million per MW for 2013-14. For biomass-based projects based on Rankine cycle technology application using the water cooled condenser, it has increased from Rs . 45 million per MW to Rs. 46 million per MW during the same period. Taking into account the concerns raised by several SHP developers regarding ns1ng transportation and construction costs, the CERC has revised the normative capital cost of these projects in all states. The normative capital cost of SHP projects has been determined separately for Himachal Pradesh, Uttarakhand and the Norht– Eastern states, and for other states. For the former category, the cost has been increased from Rs. 77 million per MW to Rs 80 million per MW for projects of less than 5 MW capacity, and from Rs 70 million per MW to Rs 73 million per MW for projects of 5-25 MW capacity. For the second category, the cost has been increased from Rs 60 million per MW to Rs 62 million per MW for projects of less than 5 MW capacity, and from Rs 55 million per MW to Rs 57 million per MW for projects of 5-25 MW capacity. The revisions reflect the increased capital costs and provide a basis for cost escalation for the control period, which in this case is five years, starting April 2012. Meanwhile, in the case of solar PV projects , the normative costs have been reduced from Rs 100 million to Rs 80 million to reflect the decreasing equipment costs. Unlike in 2012-13, when the normal cost of solar thermal was maintained at the same level of Rs 130 million per MW, it has now been reduced to Rs 120 million per MW. Conclusion While the CERC has released the order in a timely manner, its real impact would be visible on ly when the SERCs make appropri ate revisions in their tariff orders. It is important that the SERCs take into account the concerns raised by developers in order to determine suitable feed-in tariffs, which are the prime drivers of green energy investments. Courtesy: Renewable watch, April 2013 RENEWABLE ENERGY CAPACITY TO BE DOUBLED BY 2017, PROPOSES PM Indian plans to double its renewable energy capacity to 55,000 MW by 2017 as part of its efforts to increase efficiency of energy use, Prime Minster Manmohan Singh said here on Wednesday. "It is proposed to double the renewable energy capacity in our country from 25,000 MW in 2012 to 55,000 MW by the year 2017. "he said, inaugurating the fourth Clean Energy Ministerial Conference here. He said this would include exploiting non– conventional energy sources such as solar, wind power and energy from biomass. Singh said India's 1ih Five Year plan recognized the importance of evolving a low carbon strategy for inclusive and sustainable growth. "We have set ourselves a national target of increasing the efficiency of energy use to bring about a 20-25% reduction in the energy intensity of our GDP by 2020, "he said , adding that the plan envisaged an expanded role for clean energy; including hydel, solar and wind power. However, he said the expansion of reliance on new energy sources was constrained by the fact that these were more expressive than conventional energy. " The cost of solar energy : for example, has nearly halved over the last two years , though it remains higher than the cost of fossil fuel-based electricity. If the cost imposed by carbon emissions is taken into account, then solar energy is more cost effective, but it is still more expensive, "he said. Counting on the probability of failing costs in their area, Singh said India has launched a Jawaharlal Nehru National Solar Mission to develop 22,000 MW of solar capacity by the 2, 022, covering both solar photovoltaic and solar thermal. ''The cost differential is being covered by different forms of subsidy and cross subsidy; "he said. Courtesy: The Financial Express, New Delhi, 18.04.2013 33