The ppt gives an overview on recent policy initiatives on Renwable Energy, like cerc\'s new regulation, national solar mission and renewable energy certificate
13. CERC’s new regulation Salient Features contd. Review Period –3 years Tariff Period – Small Hydro Projects : 35 years Solar PV & Solar Thermal : 25 years Other RE Projects : 13 years Useful life – Wind Projects : 25 years Biomass Projects : 20 years Small Hydro Projects : 35 years Solar PV / Solar Thermal Projects : 25 years Project Specific Tariff – May be determined by commission on case to case basis for the following; Hybrid Solar Thermal Power Plants Municipal solid waste projects Any other new renewable technology
14. CERC’s new regulation Salient Features contd. Tariff Structure Single part tariff with following fixed cost components (except for biomass and non – fossil fuel based cogen plants) Return on Equity (ROE) Interest on loan capital Depreciation Interest on working capital Operation and maintenance expenses Levellised Tariff – Discount factor equivalent to weighted average cost of capital (WACC) Dispatch Principles – “MUST RUN” status for all RE projects except biomass project of 10 MW and non-fossil fuel based cogen plants.
20. Solar Energy Levellised Tariff State-wise Comparison * - Projects are under GBI policy with cap of 50 MW
21. Objectives National Solar Mission To make India Global leader in solar energy through - 20,000 MW Generation Capacity by 2020 100,000 MW Generation Capacity by 2030 200,000 MW Generation Capacity by 2050 Cost reduction for solar power to grid parity (Rs 4-5 / kWh) by 2020 To achieve parity with coal based Thermal Power by 2030 Mandatory setting of solar plants equivalent to 5% of thermal power plant capacity to be set by the generation utilities. 4 – 5 GW of solar manufacturing capacity by 2017
29. Proposed to be supplemented through cess on fossil fuel and thermal projects
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31. RENEWABLE ENERGY CERTIFICATE NAPCC Promoting Renewable Energy Target of mandatory 5% Renewable Energy Purchase (RPO) for FY 2009-10 against current level of around 3.5% by Discoms, Open Access consumers and captive consumers. Target will increase by 1% for next 10 years Constitute approx. 15% of the energy mix of India Need for innovative financing instruments Policy instrument prescribed in NAPCC is Renewable Energy Certificate (REC) Mechanism to enable RPO implementation. Report on Development of Conceptual Framework for REC Mechanism for India - ABPS Infrastructure Advisory Private Limitedsubmitted to MNRE, June 09
32. RENEWABLE ENERGY CERTIFICATE REC Concept Electricity generated from RE sources can be divided into two components: Electricity component Environmental component The environmental component associated with renewable energy can be carved out as a separate component and used for the purpose of REC mechanism SCHEMATIC OF REC CONCEPT
43. RENEWABLE ENERGY CERTIFICATE Proposed Process of REC Mechanism Step 1: Electricity Generation and Feeding to the Grid Step 2: Request for issuance of REC Step 3: Confirmation of Electricity Generation Step 4: Creation and Issuance of RECs Step 5: REC Sale by RE Generator Step 6: Surrender/Redeeming of RECs Step 7: Compliance Reporting
44. Accreditation of RE power plants (State nodal agency: SNA) 1 Information related to accreditated RE plants for registered entities sent to REC registry Registration of Eligible entities (Central level agency) 2 5 4 Issuance of REC REC exchange Central REC Registry (NLDC) RE Generator Information related to RE generation 3 Sale of electricity at par with conventional power Auditing Panel 6 Discom issuing RE injection certificate State Load Despatch Centre (SLDC) Information on REC purchase/redemption Electricity Energy accounting SERC: Compliance based on SNA Report State Nodal Agency SNA RENEWABLE ENERGY CERTIFICATE Operational framework of REC mechanism - Comprehensive