States may soon have to purchase at least 5 per cent of their power need in a year from renewable sources. The forum of electricity regulators headed by the chairman Central Electricity Regulatory Commission (CERC) has adopted a framework by way of which states will have to enter into a renewable purchase obligation (RPO). The procurement obligation is to be specified in terms of the energy purchase and not by capacity installation. The framework has been adopted in line with the National Action Plan for Climate Change.
Under this agreement states will be required to purchase a fixed per cent of their needs from renewable energy plants. They cannot get away by installing renewable capacity and not using it, a senior government official told The Indian Express. The per cent committed under the RPO will also increase progressively every year and states will have to increase the portion of their power purchase from renewable energy generating units,as per the agreement. The per cent of total demand recommended for purchase from renewable sources is 5 per cent under the framework. But states will have to come up with their own targets.
This move is expected to act as a catalyst for renewable energy infrastructure to come up in the country and capacity may have to be doubled from the existing 14,000 MW to almost 28,000 MW to make it effective. India has a renewable energy mix of only 3 per cent currently. Total spend by all states is estimated to be around Rs 70,000 crore for creating the additional capacity of 14,000 MW.
A mechanism to facilitate inter-state exchange of renewable energy has also been recommended by the framework prepared by the ministry of new and renewable energy (MNRE). The forum of regulators has also put together a group to ensure the implementation of the RPOs.
By next year,a format will also be prepared for providing renewable energy certificates to states. This is expected to be in place by April 1,2010. The modalities of the certification are being currently worked out with the states, the official said.
It has also been decided that wind,solar,small hydro-power will be categorized as non-firm sources. In other words,precise scheduling of power from such sources is not possible due to their very nature of availability under the current technology. The states will have to keep this factor in place while sourcing their power needs.