It is envisaged that a power generation capacity of around 3400 MW (grid-interactive) and 130 MW (off-grid / captive) from various renewable energy sources, mainly wind, solar, biomass and small hydro, will be added in the country during the current financial year 2011-12. The same would require capital investment of the order of around Rs. 29,000 cr. (Rs.14,500 cr. in wind power, Rs. 2,500 cr. in small hydro power, Rs.3,000 cr. in bio-power and Rs.9,000 cr. in solar power). Additional investment of about Rs. 1,000 cr. is envisaged in deployment of decentralized renewable energy systems/ devices like biogas plants, solar water heating systems and SPV lighting systems in remote villages/ hamlets.
Giving this information in a written reply to a question in Lok Sabha today the Minister of New and Renewable Energy Dr.Farooq Abdullah said the Government has taken several measures to facilitate private sector participation in setting up of the renewable energy projects which include the following:
• Fiscal and financial incentives for grid as well as off-grid/ decentralized systems, such as, capital/ interest subsidy/ generation based incentive, accelerated depreciation, nil/ concessional excise and customs duties;
• Generation Based Incentives Scheme introduced for Wind power and Solar Power to attract private investment by Independent Power Producers not availing Accelerated Depreciation benefit.
• Directives under Electricity Act 2003 to all States for fixing a minimum percentage for purchase of electricity from renewable energy sources;
• Preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year.
• Jawaharlal Nehru National Solar Mission initiated in January 2010 to enable large scale capital investment in solar energy applications.
• Amendment in National Tariff Policy to enable Solar specific RPO;
• Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission;
• Wide publicity on the use and utility of renewable energy through electronic and print media, etc.