MNRE's draft sub-group report on wind energy-III: REC causing grid stability and uncertainty to distribution utilities

• The sub-group has observed that the present regulatory framework, where the renewable energy certificates (REC) do not transfer electricity and the burden of usage of electricity falls on resource rich states, leads to grid instability and uncertainty to distribution utilities. This also results in loss of interest among the resource rich states, which have no incentive to increase their wind capacity through purchase obligations.
• Finding the present wind potential estimates as `completely infructuous`, the committee has blamed this faulty estimation for slow development of wind energy in the country.  
• Taking cognizance of the already constrained power evacuation infrastructure, the panel has drawn attention to the current strategy of the states of resorting to reducing their purchase obligation, instead of adopting plans for speedy deployment.  
• Pertinently, there is an absence of policy framework for increasing wind power capacity of already set-up wind farms, particularly by replacing old machines by efficient ones.