Increased exploitation of renewable energy does not necessarily mean high costs for the electricity utilities or the consumers, according to Mr Pramod Deo, Chairperson and Chief Executive, Central Electricity Regulatory Commission.Addressing the Green Power 2010, on institutional and structural barriers to effective deployment of renewable energy, he said a study by the Forum of Regulators, a body of electricity regulators, has shown that impact would be ‘minimal' in terms of power purchase cost for the electricity boards in meeting their renewable energy purchase obligation.The consumers too would not be ‘penalised.' The incremental impact on power purchase costs pan-India would be about 1.5 paisa a unit in 2011 diminishing to 0.1 paisa by 2015. The maximum impact for any State would be 4.2 paise a unit in 2011, which would go down to about 1 paisa by 2015.
The target of meeting 10 per cent of the total power requirement from renewable sources by 2015 as set out under the National Action Plan for Climate Change could be achieved. Regulatory measures are in place to encourage renewable energy in terms of preferential tariff and generation based incentives. However, Mr Deo emphasised that the perception of renewable energy being more expensive is not right. While wind power tariff was around Rs 4.50, in the power market short term power could be as expensive as Rs 10 a unit even for power from conventional sources.
The challenges to development of renewable energy would be in providing the evacuation infrastructure as most of the projects are in remote locations and in encouraging forecasting and scheduling, he said.
Addressing the seminar organised by the Confederation of Indian Industry, Mr Ramesh Kymal, Chairman, Renewable Energy Council, CII-Sohrabji Godrej Green Business Council, said the proposed law for renewable energy sector should be enacted fast, the generation based incentives should be doubled to Re 1 a unit and the maximum limit on the incentive should be removed.
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