Cement, Energy & Environment

( \ The target of 15 per cent of renewable power by 2020 canbe achieved only if the wind sector is allowed to grow without brakes and policy withdrawals. available to many other sectors. This prov1s1on has enabled large profit making companies, small investors and captive users to participate in the sector. However, independent power producers (IPPs) and foreign direct investments (FDI) were not able to avail of the accelerated depreciation provision. While IPPs may not be interested in the AD benefit, there is a whole class of small and medium enterprises who would be willing to invest in wind power for captive consumption provided the AD benefit is available. Renewable Energy Certificates {RECs): The trading of Renewable Energy Certificates (RECs) started in India in March 2011 . The RECs were introduced to enable all states to buy a certain proportion of their total power purchase from renewable resources. While the CERC has stipulated floor and forbearance price for non-solar RECs and solar RECs, respectively, the real price of an REC is determined at the power exchanges. To be eligible for trading RECs, an RE generator must sell its power to the host distribution utility or licensee at the average power procurement cost. It is also felt that the REC market would improve a great deal if RPO obligations are enforced on a monthly or quarterly basis and the floor and forbearance rates are held valid for ten years . Other incentives • 10 year income-tax holiday for wind power projects. • Concessional import duty on certain components of wind electricity generator • Excise duty exemption • Loan facility for setting up wind power projects by IREDA • Feed-in /Preferential tariff, which under Section 61{h) of the Electricity Act, many state regulators have issued making it obligatory for state electricity utilities to buy renewable electricity at the rates specified by the regulator • Power wheeling and banking facilities • Sales tax concession/benefits • Electricity tax exemption. Conclusion While wind has contributed the maximum so far in terms of total RE capacity as well as generation, there is a feeling, that the wind sector is receiving a step- motherly treatment from the Union government. While solar is an important sector that has to be encouraged, the same need not be at the cost of the wind sector. The recent withdrawal of AD (while continuing the same for even coal feed boilers) has come as a shock to the investors and the industry. This coupled with absence of any notification for continuation of the GBI by the MNRE may result in a sharp fall in capacity creation in 2012-2013 and beyond. Yet another weakness in the system is the manner of fixation of tariff and RPOs by SERCs without any reference to the CERC regulations. The target of 15 per cent of renewable power by 2020 can be achieved only if the wind sector is allowed to grow without brakes aqd , policy withdrawals. The government needs to take an objective view on policies and regulations and ensure stability and continuity of the same over a period. Courtesy: Renewable Energy Akshay Utja, October 2012, Pp16-22. I Environment DEAL STRUCK ON TREATY TO CUT MERCURY EIVJIC:~InNs GENEVA (Jiji Press)-Govemment representatives from around the world have reached a final agreement on a draft international treaty aimed at curbing global mercury emissions. At a U.N. intergovernmental panel meeting in Geneva, participants from about 140 economies also decided Saturday to use the word "Minamata" in the name of the convention as proposed by the Japanese government. In Minamata, Kumamoto Prefecture, chemical plant wastewater caused mass mercury poisoning. The panel will meet again in the prefecture Oct. 9- 11 to adopt the treaty. Drawing on lessons from the poisoning, called Minamata disease, the draft treaty features restrictions on global mercury trade and emissions, becoming the fourth international treaty designed to prevent damage to the health and environmental contamination. In its preamble, the draft says the parties to the convention recognize "the substantial lessons of Minamata Disease, in particular the serious health and environmental effects resulting from the mercury pollution, and the need to ensure proper management of mercury and the prevention of such events in the future." 29