29 Jan 2002 – The introduction into India’s forthcoming Electricity Bill of preferential pricing for electricity produced from renewable sources was a key suggestion of India’s Ministry of Non-conventional Energy Resources, speaking today at a seminar on wind energy in New Delhi.
Minister of State M Kannappan also called for rules on mandatory generation of renewable power and measures to promote production. “We have suggested to the Power Ministry incorporation of provisions for generation of minimum ten per cent quantity from renewable sources along with preferential pricing in the Electricity Bill”, said the minister.
Kanappan said that a subsidy was an unavoidable cost if an alternative to fossil fuel generation was to flourish. He said promotional measures like wheeling, banking and third party sale for grid connected power projects should also be incorporated.
Kanappan called for steps to boost export of wind turbines and components to enable India to become a hub for production and export of the same.
The Minister said a renewable energy policy statement has been prepared outlining the approach for providing a framework for policy, fiscal, institutional, regulatory and legislative interventions.
The government has proposed to add 10 000 MW of generation capacity from renewable sources by 2012, with 4265 MW to be set up during the tenth Plan period. India is currently the fifth largest producer of wind energy with a capacity of 1500 MW.