Stepping up generation-based incentive, enacting the renewable energy law and channelising the huge resources available to the renewable energy sector for maximum effect, will be some of the issues that are to be discussed at the ‘Green Power 2010' conference this week.
Mr Ramesh Kymal, Chairman, Renewable Energy Council, CII-Godrej GBC, said the two-day event being organised in Chennai on July 14 and 15, by the Confederation of Indian Industry, will have industry leaders and Government officials discussing policy issues to promote the renewable energy sector.The Centre has taken land mark decisions to promote wind and solar energy generation. But these need to be fine tuned and implementation speeded up at the State Government level.Incentive
For instance, the generation-based incentive for wind power will support the establishment of large capacity wind farms and investments by Independent Power Producers.But projects are slow to take off because the incentive is just about a third of what has been provided through accelerated depreciation earlier.GBI needs to be doubled to Re 1 a unit and the cap of Rs 62 lakh a MW removed, he said.Similarly, the proposed Renewable Energy Law needs to be enacted fast to give the sector the ‘special push' along the lines of support being given in European countries.
The Centre has decided to levy a cess on coal to create a fund to promote the renewable energy sector.This is expected to garner about Rs 5,000-6,000 crore annually. Policy makers need to plan to use the funds effectively.The renewable energy sector needs to be seen in a new light in the context of the emerging challenges in the use of conventional fuels.Fossil fuels are a depleting resource which is becoming increasingly costlier, pollution issues are coming to the fore, and heavy fuel subsidies borne by the Government are not sustainable.Renewable energy, particularly wind and solar energy, are a viable and practical option that needs to be exploited, Mr Kymal said.
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