According to reports, India is lagging behind in achieving the 12th plan green energy targets set out by the Planning Commission in view of big constraints like environment clearance, land acquisition and lack of strong institutional mechanism, Solar Energy Corporation of India has said.
Delivering a Special Address at India Energy Forum (IEF) Sustainable Energy Summit here today, Anil Kakodkar, chairman, Solar Energy Corpn of India, also called for revised Green Energy Policy so that clean energy projects become attractive for investments.
It was also stressed by the experts assembled here that renewable energy projects are becoming unsustainable in view of high installation costs, unpredictability of future returns and inefficient implementation of single window clearances system for small scale entrepreneurs of renewable energy projects.
The India Energy Forum (IEF) and Observer Research Foundation (ORF) Paper released at the Summit strongly recommended that financial instruments such as viability gap funding and the partial risk guarantee fund that provide immediate support for project developers and reduce the initial costs should be prioritized.
The Paper also emphasized that targeting grid parity of renewable energy prices will foster their competitiveness. This could be further supported through direct (bundling concept) or indirect subsidies (coal cess) for clean technologies and research & technology developments.
Government should also consider strengthening its REC system by charging the obligated entities higher forbearance price if they do not meet their specific Renewable Purchase Obligations (RPOs). Additionally, since the financially stricken DISCOMs are a vital part of the REC mechanism, their liquidity is prerequisite for the functioning of the instrument.
However, in his address, I A Khan, advisor (Energy), Planning Commission hoped that the renewable energy projections set out by the commission will be achieved in the stipulated period and announced that the government will take corrective action in the next few years. Even in wind, first year capacity progress being very good but the hurdles are prevailing in terms of land acquisition issue.
Earlier, inaugurating the IEF Sustainable Summit, T Ramasami, secretary, Department of Science & Technology emphasized to establish high grid technology for the rural areas and need for introduction of better technologies so that the large scale project developers, investors and lenders keep on investing in this sector.
Secretary DST also pointed out that India’s grid infrastructure is currently operating at maximum capacity and demands further development.