Efforts to boost investment in renewable energyBy ANI
Wednesday, November 17, 2010
NEW DELHI - The Government of India is keen to bring new investments in renewable energy projects and help introducing market based competition in renewable energy sector.
To encourage the inflow of investments, Union Power Minister Sushil Kumar Shinde and Union Minister for New and Renewable Energy Farooq Abdullah will launch the ‘Renewable Energy Certificate (REC) Mechanism’ here on Thursday.
The Central Electricity Regulatory Commission (CERC) has notified the regulatory framework for Renewable Energy Certificate Mechanism, which is being supported by the Ministry of New and Renewable Energy (MNRE) and the Ministry of Power.
A large part of our Renewable Energy potential is reportedly concentrated in few States and some of these States have achieved comparatively high levels of renewable electricity purchase as share of their total electricity consumption.
The electricity from renewable energy being more expensive than the conventional electricity, these States are not willing to buy renewable based electricity any further.
Tamil Nadu, which has more than ten percent of total electricity from renewable sources of energy, still has untapped wind energy potential.
On the other hand, there are States like Bihar and Delhi, which have very little renewable energy potential, but are required by the National Electricity Policy to enhance the share of renewable electricity in their total electricity consumption.
To address this mismatch, the Electricity Regulatory Commissions have collectively evolved Renewable Energy Certificate Mechanism under which the green electricity is to be split into two components, which are electricity and the green attribute. (ANI)