Public Policy Analysis Paper

Green Energy: A Policy Perspective

Level E Training Programme for Deputy/Under Secretaries of

Central Secretariat Service (CSS)

PUBLIC POLICY ANALYSIS PAPER

Public Policy Analysis Paper

GREEN ENERGY: A POLICY PERSPECTIVE

On
TABLE OF CONTENTS

GREEN
Chapter ENERGY: A POLICY PERSPECTIVE
No.

1.

CONTENTS

Acknowledgment
List of Abbreviations/Acronyms
Executive Summary
Green Energy: An Introduction
1.1 Background
Introduction
Submitted 1.2
in total
fulfillment of the requirement for
1.3 The Problem Statement
Programme
2.
Green Energy: Indian Scenario
rd
2.1 The present
scenario
and potential
(23
March
3rd May, 2015)
2.2 Types of green energy
2.3 Indias Energy Response
2.4 Indias Push for Renewable Energy
Submitted
By Group-II:
2.5 Aggressive goals
for renewables
2.6 Still committed to coal
Ajit Kumar
3.
Existing Institutional/ Policy Framework
F.D.Initha
3.1 Institutional Mechanisms
3.2 Regulatory Framework
M.S.Nayar
4.
Alternate Policy for Green Energy
K.K.Jha
4.1 Alternate Policy
4.2 Enhancement in targetG.S.Arora
for RPO
4.3 Implementation of HPO
Alka Ahuja
4.4 Massive Solar Mission
5.
Additional Recommendations/ Aspirations
5.1 Decentralized solar energy system
5.2 Rural Electrification
5.3 Green Buildings
5.4 Renewable Energy based cooking system

Page Nos.
3
4
5
8-13

Level E Training
14-22

23-28

29-38

39-42

INSTITUTE OF SECRETARIAT TRAINING AND MANAGEMENT

Public Policy Analysis Paper

Green Energy: A Policy Perspective

6.
7.

Role of Central and State Govt./NGOs/IPPs

Bibliography/Webliography

43
44

ACKNOWLEDGEMENT

We, the members of Group-II, undertaking the 29th batch of Level E Training
Programme for deputy/Under Secretaries of the CSS at ISTM, New Delhi from
23rd March to 3rd May, 2015 express our gratitude to the Department of Personnel
& Training (CS Division), Government of India for having us nominated to attend
this prestigious Training Programme which enabled us to broaden our outlook and
also exposed us to a better decision making and analytical techniques.
We are also grateful to the faculty of ISTM Shri Satyajit Mishra (Course
Director), Joint Director and Shri Vadali Ram Babu (Course Coordinator), Deputy
Director and for having provided us with insights and guiding us during the course
of the preparation of this policy paper. We are also thankful to Shri Umesh Kumar,
Director, ISTM and Shri. Chandan Mukherjee, Deputy Director (ISTM) and also to
all academic and administrative officials, especially Shri Sethuraman for his
support and valuable guidance and interactions at regular intervals.
The Group also expresses its gratitude to the Ministry Of Power, Ministry of
New & Renewable Energy, Ministry of Coal and Central Electricity Authority
(CEA) without active assistance and cooperation of whom, this paper would not
have been prepared.
A set of thanks to all the participants for providing moral support and
intellectual inputs for completing this paper.

Ajit Kumar
F.D.Initha
M.S.Nayar
K.K.Jha
Alka Ahuja
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Public Policy Analysis Paper

Green Energy: A Policy Perspective

G.S.Arora

Public Policy Analysis Paper

Green Energy: A Policy Perspective

S.No.

Acronym

Definition

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.

HPO
HEPs
RPO
IC
MW
REC
EC Act
CEA
SERC
CERC
IPP
MNRE
BEE
CSP
IEPR
IREDA
PPA
RPS
PMD
RFD
MoP
MoEF
JNNSM

Hydro Power Purchase Obligation

Hydro Electricity Projects
Renewable Purchase Obligation
Installed Capacity
Mega Watt
Renewable Energy Certificates
Energy Conservation Act
Central Electrification Authority
State Electricity Regulatory Commission
Central Electricity Regulatory Commission
Independent Power Producers
Ministry of New & Renewable Energy
Bureau of Energy Efficiency
Concentrated Solar Power
Integrated Energy Policy Report
Indian Renewable Energy Development Agency
Power Purchase Agreement
Renewable Portfolio Standards
Performance Management Division
Results Framework Document
Ministry of Power
Ministry of Environment and Forest
Jawaharlal Nehru National Solar Mission

LIST OF ABBREVIATIONS

EXECUTIVE SUMMARY
Energy plays a central role for the development and growth of a nations
economy and it is a key indicator to its prosperity. For more than a century, Fossil
fuels have been one of the cheapest and most prevalent source of energy. On one
hand, the sources for fossil fuels are depleting fast and on the other hand, they have
been held responsible for causing irreparable loss /degradation to the global
environment and ecological climate, and also causing heavy burden on the
exchequer of the world economies as the prices of fossil fuels have soared very
high. Simultaneously, energy deficit has been most challenging factor for India.
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Public Policy Analysis Paper

Green Energy: A Policy Perspective

Therefore, GREEN ENERGY has rightly been advocated as a panacea to all these
problems
The Govt. has initiated efforts to achieve 24x7 power for all. However, it is
to mention that the Real-time Demand and Supply vary constantly. For long,
conventional sources of Coal, Gas, Nuclear and hydro power stations apart from
some Diesel stations formed the backbone of our power system. Of late, nonconventional sources like the Solar, Wind etc. power system in the country are also
contributing significant infirm power to the system. The Govt. have initiated
efforts to give further push to the development of these renewable resources other
than hydro power like Solar and Wind in big way. However, the power from these
renewable resources is intermittent in nature and also not very dispatchable
friendly i.e. these generating plants cannot be turned on or off, or cannot adjust
their power output on demand. Therefore, power systems have to follow both
varying electricity demand as well as to adjust to an increasingly variable power
intake. As such, back-up power and flexible generation from other sources would
be required to balance the demand and supply or the load-shedding has to be
resorted. Therefore, ensuring system stability and a continuous flow of electricity
by balancing fluctuations in frequency and voltage in future is also a challenge
since with increasing share of wind and solar power, the electricity system will
face ever more generation-driven fluctuations.
Further, Indias substantial and sustained economic growth, increasing
prosperity and urbanization, rise in per capita consumption, and spread of energy
access is placing enormous demand and supply imbalance in energy sources
requiring serious efforts by State / Central Government to augment energy supplies
with an ambitious plan of capacity addition in Renewable Energy Sector.
On one hand, there is a threat of increase in energy deficit, creating serious
problems for Indias future energy security. It is apparent that there is a significant
risk of lesser thermal capacity being installed on account of lack of indigenous coal
in the coming years because of both production and logistic constraints, and
increased dependence on imported coal. Significant accretion of gas reserves and
production in recent years is likely to mitigate power needs only to a limited
extent. Difficulties of large hydro are increasing and nuclear power is also beset
with problems. Already, in the electricity sector, current official all-India peak
deficits are around 13% (CEA website) which may increase further. Therefore,
Renewable energy is no longer alternate energy, but will increasingly become a
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Green Energy: A Policy Perspective

key part of the solution to the nations energy needs making a substantial
contribution.
Moreover, India has signed various International Agreements to adhere to
the norms of Green Energy and climate change, and, therefore, India has
international compulsions as well to shift significantly to Renewable sources of
energy.
In this context, our study has sincerely made an endeavor to examine the
existing Green Energy Scenario in India and have recommended policy initiative
for Green energy Clean energy as an alternative to fossil fuels and to meet the
energy deficit and also as a panacea for the environmental degradation and climate
change. During the 12th Five Year Plan (2012-17), a capacity of 30,000 MW of
Renewable Energy has been targeted which is around 34% of the total targeted
capacity of 88537 MW for all the resources during the period. (NITI AYOG Plan
Paper). Union Minister of Power has targeted a capacity of 1 lakh MW from Solar
Power alone by end of 2020 ( MOP Document). In order to understand the present
scenario, Fuel-wise installed capacity break-up (in MW) AS ON 1.3.2015 is given
below Technology

Hydro

Thermal

Installed
Capacity

40,798

1,77,741

Renewables
(RES)
*31,692

Nuclear

Total

4,780

2,55,012

*R.E.S. includes Small Hydro, Biomass, Urban & Industrial waste power, solar
power, Wind power etc.
In this study, efforts have been made to suggest alternate policy initiative to
address the issues. The main premise of our study is that the State is the primary
player in promoting green energy through its laws, legislations, policies and
programs. Hence we would like to analyze the extant laws /Acts/Rules/Guidelines
etc on green energy. A scrutiny is be made in respect of existing Central Govt.
policies for promotion of Green energy in all forms be it solar, wind, small Hydropower, bio gas, geo-thermal, tidal etc. The study would also broadly go in to the
green energy as a technology- alternative and suggest measures to maximize the
use of green energy for all sorts of viable energy needs. Since the ambit of Green
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Green Energy: A Policy Perspective

Energy is very vast, therefore, the Group had to restrict the scope of the policy
initiative to power generation mainly. Hence, the prime focus will be on power
generation. We would also be exploring the external linkages and the role of stake
holders like the Centre, State, NGOs, Independent Power Producers (IPPs) etc.
The study would also deal with proposed new policy initiatives in the arena
of GREEN ENERGY like
promotion of grid-interactive renewable power
generation projects, promotion of renewable energy initiatives for meeting energy,
lighting needs in rural areas, supplementing energy needs in urban areas,
supplementing energy needs in industry and commercial establishments, and
research, design and development activities at premier national institutions and
industries on advancement in Green energy technology and finally encourage
development of a robust manufacturing industry in Renewable Energy Sector.
The study would try to find out the effectiveness and feasibility of the use of
GREEN ENERGY and role of non-state sectors like NGOs, Households etc., apart
from policy initiatives and new legislations in use and promotion of Green Energy
for the positive impact it has on the environment, economy and the climate change.
We would also suggest that India needs to shift from fossil fuels to other nonconventional energy options, such as solar energy, wind energy, biomass and small
hydro power-projects for a sustainable energy development in India. It seems that
India will definitely achieve the objective of Green Energy as both Honble Prime
Minister Shri Narendra Modiji and Energy Minister Shri Piyush Goyalji are two
whole hearted committed Leaders we have in present set up.

CHAPTER 1
"Affordable, adequate and high-quality 24x7 power to every
home in the country for every industry - small scale, medium scale, for

GREEN ENERGY: AN INTRODUCTION

every shops (small or big) how we can make India diesel-generator free
1.1

was the theme of the second conference that we have had after the new
BACKGROUND
government came in the country. After this two-day conference, I am
doubly convinced that Prime Minister Narendra Modi's vision and his
mission to provide 24x7 power to every Indian will be fulfilled by
2019.
7

- Union Power Minister Piyush Goyal said at a media briefing

Public Policy Analysis Paper

Green Energy: A Policy Perspective

Energy is the prime mover of economic growth, and is vital to sustaining a

modern economy and society. Future economic growth significantly depends
on the long-term availability of energy from sources that are affordable,
accessible and secure.
Interest in renewable energy came to the fore during the worldwide energy
crises of the 1970s, when high oil prices highlighted the world's dependence
on fossil fuels. Secure and affordable energy provision is vital for nations'
development,

as all industrialization, manufacturing, and building

programmes consume vast amounts of energy. Since the oil crisis of the
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Public Policy Analysis Paper

Green Energy: A Policy Perspective

1970s, and largely as a result of the increased exploration and exploitation of

fossil fuel reserves, the abundant supply of oil and coal across the world
enabled market forces to drive down the price of fuel, and consequently
electricity, to low levels.
However, estimates suggest that approximately half of the world's oil
reserves, and a smaller fraction of coal reserves, have been used in little over
200 years. As demand outpaces supply, however, renewables can play a
major role in bridging the gap.
By way of contrast, fossil fuels such as coal, oil, and gas, although originally
laid down effectively as biomass, take millions of years to form and need to
be regarded as finite, non-renewable resources.
1.2

INTRODUCTION
In the history of mankind, renewal energies have for a long time been the
primary possibility of generating energy. Industrial Revolution changed the
energy trend all over the world. (U.S. Environmental Protection Agency).
Green Energy is energy that can be extracted, generated, and/or consumed
without any significant negative impact to the environment. The planet has a
natural capability to recover which means pollution that does not go beyond
that capability can still be termed green.
Green power is a subset of renewable energy and represents those renewable
energy resources and technologies that provide the highest environmental
benefit. The U.S. Environmental Protection Agency defines green power as

Public Policy Analysis Paper

Green Energy: A Policy Perspective

electricity produced from solar, wind, geothermal, biogas, biomass and lowimpact small hydroelectric sources.
"Effectively, the provision of energy such that it meets the needs
of the present without compromising the ability of future generations to
meet their own needs. ...Sustainable Energy has two key components:
renewable energy and energy efficiency." Renewable Energy and
Efficiency Partnership (British Journal, 2013
Firstly, Energy is the most important problem of the world, because of two
reasons: First; the sources are limited. Considering the relationship between
the standard of living and the energy usage, the situation is being worse year
by year. Secondly; the processes to convert the fossil fuels are deeply
hazardous for the environment.
Fortunately, the energy flows that occur naturally and repeatedly in the
environment can be harnessed for human benefit. The ultimate sources of
most of this energy are the sun, gravity and earths rotation. In renewable
energy literature, the words alternative and sustainable are being used to
emphasize the possibility of using sources other than the fossil ones which
will finish never. Whatever they are called, renewable, alternative and
sustainable, these energy systems are planned as the parts of the solution
to the energy problem by substituting the fossil sources with the replenished
ones. Renewable energy is the energy obtained from the continuous or
repetitive currents of energy recurring in the natural environment. To assume
any energy flow as renewable it should be replenished at least at the same
rate as it is used. A renewable energy system is an alternative one, if it is
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Green Energy: A Policy Perspective

able to provide some or entire part of the energy needs which is met by the
fossil fuels. Such a system is also sustainable because the energy supply will
sustain continuously, as the sun continues to shine, gravity continue to apply
on the objects and the earth continues to rotate. Fossil fuels, on the other
hand, like coal, petroleum and gas are the conventional ones having no
sustainability.
1.3

THE PROBLEM STATEMENT

Apart from the future supply problems, the environmental impact of sources
of energy based on fossil fuel is rapidly generating great concern as the
impact of increasing levels of greenhouse gases like carbon dioxide (CO2)
on the global weather patterns is becoming more apparent. In addition,
unburnt hydrocarbons (fuel) and the products of combustion, such as oxides
of nitrogen and Sulphur, cause far-reaching damage to health and the
environment. Renewable energy is largely available without chemical
processes and hence production of CO2 and other gaseous emissions
involved in renewable energy is negligible as they are only generated during
the manufacturing and installation of the necessary devices. The burning of
biomass, such as wood, does, however, directly produce CO2 as a result of
combustion but the gas is absorbed by new wood as it grows and hence the
net emission is zero, as long as the fuel crop is completely replenished.
In order to meet growing demand of power in the country various sources of
power generation viz. coal, gas, hydro, nuclear and renewable are being
exploited. With the increasing emphasis on reduced carbon emission from
the power sector, low carbon growth strategy is being adopted in the Indian
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Green Energy: A Policy Perspective

Power Sector, which inter-alia considers emphasis on renewable energy

resources.
1.4

GREEN ENERGY: THE PRESENT SCENARIO AND THE

POTENTIAL IN INDIA
The installed capacity of renewable energy (RES) excluding Large Hydro
Power Projects (above) has touched 31692.14MW or around 13% only of
the total potential available in the country (255012.78), as on 1st March
2015. With this, the renewable energy, including large hydroelectricity
(40798.75), constitutes merely around 29% of the overall installed capacity
in India (CEA website).
According to the India Renewable Energy Status Report 2014 released at the
ongoing Green Summit 2014 in Bangalore on Thursday, the total renewable
energy potential from various sources in India is 2,49,188 Mw. The untapped
market potential for overall renewable energy in India is 2,16,918.39 Mw
that shows huge growth potential for renewable energy in India.
The Ministry of New & Renewable Energy (MNRE), Government of India
has set a target of achieving overall renewable energy installed capacity of
41,400 MW by 2017. This creates an opportunity worth $10.51 billion for
the renewable market in India till 2017.
India has the world's fifth-largest electricity generation capacity, which
currently stands at 243 GW. The power sector in India is highly diverse with
varied commercial sources for power generation like coal, natural gas,
hydro, oil and nuclear as well as unconventional sources of energy like solar,
wind, bio-gas and agriculture. The demand for power has been growing at a
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Green Energy: A Policy Perspective

rapid rate and overtaken the supply, leading to power shortages in spite of
manifold growth in power generation over the years.
Focused efforts will bridge this demand-supply gap by way of policy
reforms, participation from private sector and development of the Ultra
Mega Power Projects (UMPP).
Therefore, the government has to take a tough stance between balancing
economic development and environmental sustainability. One of the primary
challenges for India would be to alter its existing unstainable sources of
energy.

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Green Energy: A Policy Perspective

CHAPTER -2
GREEN ENERGY: INDIAN SCENARIO
2. 1

THE PRESENT SCENARIO AND THE POTENTIAL IN INDIA

The present installed capacity of renewable energy (RES) excluding Large
Hydro Power Projects (above) has touched 31692.14MW or around 13%
only of the total potential available in the country (255012.78), as on 1st
March 2015. With this, the renewable energy, including large hydroelectricity (40798.75), constitutes merely around 29% of the overall installed
capacity in India (CEA website).
According to the India Renewable Energy Status Report 2014 released at the
ongoing Green Summit 2014 in Bangalore on Thursday, the total renewable
energy potential from various sources in India is 2,49,188 Mw. The untapped
market potential for overall renewable energy in India is 2,16,918.39 Mw
that shows huge growth potential for renewable energy in India.
The Ministry of New & Renewable Energy (MNRE), Government of India
has set a target of achieving overall renewable energy installed capacity of
41,400 MW by 2017. This creates an opportunity worth $10.51 billion for
the renewable market in India till 2017.
India has the world's fifth-largest electricity generation capacity, which
currently stands at 243 GW. The power sector in India is highly diverse with
varied commercial sources for power generation like coal, natural gas,
hydro, oil and nuclear as well as unconventional sources of energy like solar,
wind, bio-gas and agriculture. The demand for power has been growing at a
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Public Policy Analysis Paper

Green Energy: A Policy Perspective

rapid rate and overtaken the supply, leading to power shortages in spite of
manifold growth in power generation over the years.
Focused efforts will bridge this demand-supply gap by way of policy
reforms, participation from private sector and development of the Ultra
Mega Power Projects (UMPP).
"The power sector offers tremendous opportunities for investing
companies due to the huge size of the market, growth potential and
returns available on capital. Industrialisation, urbanisation, population
growth, economic growth, improvement in per capita consumption of
electricity, depletion of coal reserve, increasing import of coal, crude oil
and other energy sources and the rising concern over climate change
have put India in a critical position - Renewable Energy Status Report
2014.
Therefore, the government has to take a tough stance between balancing
economic development and environmental sustainability. One of the primary
challenges for India would be to alter its existing energy mix, which is
dominated by coal, to a larger share of cleaner and sustainable sources of
energy.
2.2

TYPES OF GREEN/ RENEWABLE ENERGY RESOURCES

Some renewable sources of green / renewable energy in our country may be
summarized as under:
(i) Biogas: Biogas typically refers to a gas produced by the biological
breakdown of organic matter in the absence of oxygen. Biogas originates
from biogenic material and is a type of biofuel. One type of biogas is
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produced by anaerobic digestion or fermentation of biodegradable

materials such as biomass, manure or sewage, municipal waste, green
waste and energy crops. This type of biogas comprises primarily methane
and carbon dioxide. The other principal type of biogas is wood gas which
is created by gasification of wood or other biomass. This type of biogas is
comprised primarily of nitrogen, hydrogen, and carbon monoxide, with
trace amounts of methane.
The gases methane, hydrogen and carbon monoxide can be combusted or
oxidized with oxygen. Air contains 21% oxygen. This energy release
allows biogas to be used as a fuel. Biogas can be used as a low-cost fuel in
any country for any heating purpose, such as cooking. It can also be used
in modern waste management facilities where it can be used to run any
type of heat engine, to generate either mechanical or electrical power.
Biogas can be compressed, much like natural gas, and used to power motor
vehicles. Biogas is a renewable fuel, so it qualifies for renewable energy
subsidies in some parts of the world.
(ii)Solar Energy: Solar energy is the light and radiant heat from the Sun that
influences Earth's climate and weather and sustains life. Solar power is the
rate of solar energy at a point in time; it is sometimes used as a synonym
for solar energy or more specifically to refer to electricity generated from
solar radiation. Since ancient times solar energy has been harnessed for
human use through a range of technologies. Solar energy technologies can
provide electrical generation by heat engine or photovoltaic means, day
lighting and space heating in passive solar and active solar buildings,
potable water via distillation and disinfection, hot water, space cooling by
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absorption or vapor-compression refrigeration, thermal energy for cooking,

and high temperature process heat for industrial purposes. Due to specific
equatorial location, India has a vast potential for Solar Energy.
(iii)

Hydropower: Hydropower is the largest source of renewable energy.

This renewable source of energy, as on 1st March, 2015, provides 15%

(40798 MW) of the nation's total electricity (255012.78MW) converting
flowing water into usable energy produces hydropower. Most of this water
comes from rivers and is released through turbines to produce energy.
Although this power source does not release pollution, the large Hydro
Electric projects (HEPs) can possibly harm fish and wildlife, displace
people, and alter the quality of water. Better technology is trying to reduce
the loss of aquatic life, but the problem with this technology is that it is
highly expensive and takes a long time to build. HEPs of above 25 MW is
being dealt by Ministry of Power (MOP) and HEPs of less than 25 MW
which is often called Small Hydro Project (SHP) is dealt in in Ministry of
New and Renewable Energy (MNRE).
(iv)

Wind Energy: Wind energy is produced when the wind rotates blades

around a hub, which is connected to the main shaft. The main shaft spins a
generator. The size of turbines is determined by how much energy is
needed. Small wind turbines are usually used for homes, farms and
ranches. Other ways to use wind energy include grinding grain and
pumping water.
The disadvantages of wind energy are that again, the technology is very
expensive, the machinery is known to be noisy, birds have been killed by
running into the turbines, and the wind might not be present at certain
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times throughout the year. Moreover, it is not a firm source of power.

However, the Govt. of Tamil Nadu is extensively generating Wind Energy
in its wind shadow zones.
(v) Tidal Energy: Tides are generated through a combination of forces exerted
by the gravitational pull of the sun and the moon and the rotation of the
earth. The relative motion of the three bodies produces different tidal
cycles which affect the range of the tides. In addition, the tidal range is
increased substantially by local effects such as shelving, funneling,
reflection and resonance. It has limitations for capacity addition due to
inherent reasons.
Energy can be extracted from tides by creating a reservoir or basin behind
a barrage and then passing tidal waters through turbines in the barrage to
generate electricity. Tidal energy is extremely site specific requires meantidal differences greater than 4 metres and also favourable topographical
conditions, such as estuaries or certain types of bays in order to bring
down costs of dams etc.
(vi)

Geothermal Energy: Geothermal energy is capable of producing

about 2,800 Megawatts of energy per year. Geothermal energy is produced

from naturally occurring steam and hot water from under the Earth's
surface. The steam rotates a turbine, which in turn powers an electric
generator. Also, hot water can be used to directly heat buildings. The
downside to geothermal energy is that land sites are very hard to find and
extremely rare. A positive fact is that geothermal energy is very cost
effective and reliable.

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2. 3

INDIAS ENERGY RESPONSE

India faces formidable challenges in meeting its energy needs and in
providing adequate energy of desired quality in various forms in a
sustainable manner and at competitive prices. India needs to sustain an 8%
to 10% economic growth rate, over the next 25 years, if it is to eradicate
poverty and meet its human development goals. To deliver a sustained
growth rate of 8% through 2031-32 and to meet the lifeline energy needs of
all citizens, India needs, at the very least, to increase its primary energy
supply by 3 to 4 times and, its electricity generation capacity/supply by 4 to
5 times of their 2013-14 levels. With 2013- 14 as the base, Indias
commercial energy supply would need to grow from 5.2% to 6.1% per
annum while its total primary energy supply would need to grow at 4.3% to
5.1% annually. By 2031-32 power generation capacity must increase to
nearly 8,00,000 MW from the current capacity of around 2,55,012 MW
inclusive of all captive plants. Meeting the energy challenge is of
fundamental importance to Indias economic growth imperatives and its
efforts to raise its level of human development.

2. 4

INDIA'S PUSH FOR RENEWABLE ENERGY

The new government faces pressure both to cut emissions and ramp up
energy access. For now, coal remains king. But India still faces steadfast
international pressure to deliver action on climate change, even as Modi
promises to bolster the energy supply in a country where more than 300
million people lack access to electricity. Growing economies like China and
India, which are set to contribute more than half of the global increase in

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carbon emissions in the next 25 years, will play a critical role in any effort to
address climate change.
Shortly after Shri Modi took office in May, one of his party officials made a
sweeping promise: India would develop enough solar power to run at least
one light bulb every home by 2019. The goal is part of a larger push to boost
renewables in India, where energy demand is projected to double over the
next 20 years. But even with a drastic boost of renewable energy, India faces
a formidable challenge in weaning itself from coal, which accounts for 59
percent of its electric capacity. That dependence on fossil fuels is why India
ranks fourth behind China, the United States, and the European Union in
global greenhouse gas emissions.
2. 5

AGGRESSIVE GOALS FOR RENEWABLES

Modi's government has put forth a slew of ambitious renewable energy
goals. The country's minister of power and energy, Piyush Goyal, told a
gathering of wind turbine makers in August that he intended to add 10,000
megawatts of capacity to the sector every yearthat's about half of the
country's current total installed capacity.
Mr. Goyal also made a statement that the government would go "far beyond"
the previous regime's 2009 goal of installing 20,000 megawatts of solar
energy capacity by 2020. Even the previous regime's target could potentially
power 10 to 15 million households, or the entire Delhi metropolitan area.
Targets and talk aside, much remains to be done in both the wind and solar
sector. Large-scale state-sponsored programs have helped India boost its
solar capacity by a factor of a hundred between 2011 and 2014. But plans for
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the world's largest solar power plant, a 4,000-megawatt project in the midst
of the Thar Desert in the west, have stalled over concerns about the risks to
flamingos and other migratory birds.
Modi's government formalized its support for renewables with the annual
budget it released in July, allotting funds for "green energy corridors" that
are meant to address chronic issues with transmitting energy from renewable
sources to market. The budget also funds the development of small solar
parks along canals and solar-powered pumps for farms, among other
sustainability initiatives.
But in some respects, the budget's scale was modest: It allotted funding for
large solar power projects in just 4 of India's 29 states. As per experts in the
field , it is presumed there is a need a ten-fold increase in investment in new
and renewable energy and a long-term plan if we want to put a dent in our
consumption of coal and oil.
Renewables other than hydroelectricwind, solar, geothermal, and biomass
currently account for 13 percent of India total electric-generation capacity,
more than twice as high a proportion as in the United States. But in practice
they contribute less to the power grid because of a lack of transmission
capacity and a lack of incentives for companies to purchase solar and wind
power.

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2.6

STILL COMMITTED TO COAL

Despite the multi-pronged effort to boost renewables in India, Energy
minister Piyush Goyal has made it clear that coal will not be going away.
(MOP Report). In a synopsis of his government's first hundred days, he
touted record growth in coal-fired electricity generation in recent months
and set new targets for coal exploration and production. He called the
country's gap in electricity access an "abomination."
Even as India ramps up renewable energy production and distribution
capacity, it needs to ensure that state-owned electricity companies actually
purchase that energy. The state of Tamil Nadu, for example, has about 40
percent of the country's installed capacity for wind power. It's actually less
expensive there than coal power. But state-owned distribution companies
often don't buy much of it for a variety of reasonsincluding their fear that
the rise and fall of winds, which they lack the ability to forecast well, will
destabilize the grid.
India's government has set out to raise clean energy funds by taxing coal, but
it's not clear that those funds are being used to promote renewable energy
initiatives.

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CHAPTER- 3
EXISTING INSTITUTIONAL / POLICY FRAMEWORK FOR
GREEN ENERGY
3. 1

INSTITUTIONAL MECHANISM

3.1.1 Ministry of New and Renewable Energy (MNRE)

MNRE is the nodal Ministry of the Government of India for all matters
relating to new and renewable energy. The Ministry of New and Renewable
Energy (MNRE) is the administrative ministry for policies and Programme
in this area. The Ministry itself is organized into several divisions dealing
with a set of technologies and applications.
The extension Programme of the Ministry is largely implemented through
State Nodal Agencies. All major States have set up energy agencies
exclusively for non- conventional energy Programme. These agencies, in
turn, mobilize participation of local institutions, non-governmental
organizations (NGOs) and village-level organizations for implementation of
Programme. Concurrently the R&D Programme is sponsored by the
Ministry, mainly in educational institutions, national laboratories and to
some extent, in industries, in public and private sector.
Main Functions of the Ministry of MNRE:

Policy making & planning.

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Development and deployment of Alternate Fuels (Hydrogen, bio &

Synthetic) to replace liquid hydrocarbons
3.1.2 Bureau of Energy Efficiency (BEE)
Under the provisions of the Energy Conservation Act 2001 (Refer section
2.5.1), Bureau of Energy Efficiency has been established with effect from
1st March 2002 by merging erstwhile Energy Management Centre of
Ministry of Power. BEE is presently functioning under the administrative
control of the Ministry of Power. BEEs mission is to develop programs and
strategies on self-regulation and market principles with primary objective to
reduce the energy intensity of the Indian economy. Some key activities that
BEE is pursuing include the development of energy performance labels for
refrigerators, motors, air conditioners, and other mass- produced equipment,
certification of energy managers and auditors, assisting industry in the
benchmarking of their energy use, and energy audits of prominent
government buildings. BEE is also working closely with energy
development agencies at the state level in order to deliver energy
efficiency services including through public-private partnership.
The BEE has powers to direct the designated consumers to abide by energy
consumption norms and to get their energy consumption audited. The BEE is
also empowered to mandate that all appliances carry * ( from one star to 5
stars ) labels indicating their efficiency, that appliance manufacturers abide
by efficiency standards set by BEE, and that energy consumption standards
set by BEE are met by specified industry or building complexes. The power
supply utilities are included in the list of Designated Consumers. At present,
the BEE is following a consensus approach and has not started to use its
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legal / penal powers. It has also declared that it may start using its legal
authority and powers to mandate actions in future. The BEE website
suggests that the power distribution utilities should have demand-side
management (DSM) cells (to implement the DSM programs). The BEE also
offers training support for the DSM cells set up by the utilities. The BEE
seems to imply utility-sponsored efficiency programs as a energy efficiency
improvement across industry through improved capacity utilization, fine
tuning, and technology up gradation.
3.1.3 Indian Renewable Energy Development Agency Ltd (IREDA)
Indian Renewable Energy Development Agency Limited (IREDA) was
established on 11th March, 1987 as a Public limited Government Company
under the Companies Act, 1956 and it promotes, develops and extends
financial
assistance
for
Renewable
Energy
and
Energy
Efficiency/Conservation Projects.
IREDA has been notified as a Public Financial Institution under section 4
A of the Companies Act, 1956 and registered as Non-Banking Financial
Company (NFBC) with Reserve Bank of India (RBI).
IREDAs mission is Be a pioneering, participant friendly and competitive
institution for financing and promoting self-sustaining investment in energy
generation from Renewable Sources, Energy Efficiency and Environmental
Technologies for sustainable development.
IREDAs Motto is Energy for Ever.
The main objectives of IREDA are:
To give financial support to specific projects and schemes for
generating electricity and / or energy through new and renewable
sources and conserving energy through energy efficiency.
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To maintain its position as a leading organization to provide efficient

and effective financing in renewable energy and energy efficiency /
conservation projects.
To increase IREDA`s share in the renewable energy sector by way of
innovative financing.
Improvement in the efficiency of services provided to customers
through continual improvement of systems, processes and resources.
To strive to be competitive institution through customer satisfaction.

3.2

REGULATORY FRAMEWORK

3.2.1 Energy Conservation Act, 2001: A. The main features of the Energy Conservation Act, 2001 are as under With the background of high energy saving potential and its benefits,
bridging the gap between demand and supply, reducing environmental
emissions through energy saving, and to effectively overcome the
barrier, the Government of India has enacted the Energy Conservation
Act- 2001. The Act provides the much-needed legal framework and
institutional arrangement for embarking on an energy efficiency drive.
Under the provisions of the Act, Bureau of Energy Efficiency has
been established with effect from 1st March 2002 by merging
erstwhile Energy Management Centre of Ministry of Power. The
Bureau would be responsible for implementation of policy
programmes

and

coordination

of

implementation

of

energy

conservation activities.
Standards and Labeling ( S& L ): Standards and Labeling (S & L) has
been identified as a key activity for energy efficiency improvement.
The S & L program, when in place would ensure that only energy
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efficient equipment and appliance would be made available to the

consumers.
S & L includes following provisions Evolve minimum energy consumption and performance
standards for notified equipment and appliances
Prohibit manufacture, sale and import of such equipment,
which does not conform to the standards
Introduce a mandatory labeling scheme for notified equipment
appliances to enable consumers to make informed choices
Disseminate information on the benefits to consumers
Designated consumers would comply with norms and standards
of energy consumption as prescribed by the central government.
Certification of Energy Managers and Accreditation of Energy
Auditing Firms
B. Energy Conservation Building Codes: The main provisions of the EC Act
on Energy Conservation Building Codes are:
The BEE would prepare guidelines for Energy Conservation Building
Codes (ECBC);
These would be notified to suit local climate conditions or other
compelling factors by the respective states for commercial buildings
erected after the rules relating to energy conservation building codes
have been notified. In addition, these buildings should have a
connected load of 500 kW or contract demand of 600 kVA and above
and are intended to be used for commercial purposes;
Energy audit of specific designated commercial building consumers
would also be prescribed.
3.2.2 Electricity Act, 2003
The Indian Parliament also passed the Electricity Act in 2003. It
consolidated laws related to generation, transmission, distribution, trade and
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use of electricity. Among other things, it called for rationalization of

electricity tariffs, creation of a competitive environment, and open access in
transmission and distribution of electricity. The Act also mandated the
creation of regulatory commissions at the central, regional and state levels.
3.2.3 Integrated Energy Policy-2006
It was prepared by the then Planning Commission, Government of India to
promote energy efficiency and conservation there was a need to create an
appropriate set of incentives through pricing and other measures. Public
policy can set the pace for such development by offering attractive rewards
and imposing biting penalties.
It was also felt that an enabling institutional framework is essential to
achieve the objectives listed above. Therefore, it was decided that the
Bureau of Energy Efficiency (BEE) should be made an autonomous
statutory body under the Energy Conservation Act and it should be
independent of all the Energy Ministries. It should be funded by the Central
Government.

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CHAPTER 4
ALTERNATE POLICY A POLICY FRAMEWORK FOR ADAPTATION
OF GREEN ENERGY AND SUSTAINABLE DEVELOPMENT

4. 1

ALTERNATIVE POLICY
In the backdrop of the forerunning facts, it is apparently evident that in view
of the energy crisis, demand supply gap, global call for climate change,
inherent limitations of the existing policies, to achieve 8 lakh MW target of
capacity addition in the field of energy sector and to ensure that at least 50%
of the capacity comes from green energy, we are required to take various
policy initiatives on priority basis in India. Our Group has resolved to
recommend some major policy initiatives which have been explained in the
subsequent paragraphs.

4.2

ENHANCEMENT IN TARGET FOR RENEWABLE PURCHASE

OBLIGATION (RPO):The Renewable Purchase Obligations (RPO) has been the major driving
force in India to promote the renewable energy sector. The State Electricity
Regulatory Commissions (SERCs) have defined their respective RPO
Regulations which may create a favorable and neutral/off-putting effect on
the growth of renewable energy sector. RPOs set by SERCs also differ on a
State to State basis. Renewable Energy Certificate (REC) is issued for
generating renewable energy as an incentive. RECs are exchanged within
the range of a floor price (minimum) and a forbearance (maximum) price
determined by the CERC. The recent price cuts proportionately higher for
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solar RECs than for non-solar RECs are intended to increase the
attractiveness of the REC trading mechanism. On the other hand, the down
pricing may discourage investment in new renewable energy projects.
CERC estimates the impact of RPOs on consumer prices as insignificant.
SERCs are individually responsible for administering punishment in case of
non-compliance with the CERC mandated RPOs. Therefore, most of the
States have set the maximum REC price as penalty fee when their specific
RPO is not achieved. However, there is a little evidence compliance
mechanism is actually not enforced.
At present, the RPO varies between 0% to 4%. However, there is a need to
enhance this limit to 12%. The new Government laid by Shri Narendra
Modi has given a clear indication that the RPO level may be enhanced to
more than 10%. Therefore, it is recommended that the MNRE Ministry
should bring immediate policy amendment to introduce a mandatory
level of at least 10% for RPOs. This will definitely give a boost to the
green energy sector.
4.3

IMPLEMENTATION OF HYDRO POWER PURCHASE

OBLIGATION (HPO)

4.3.1 In the backdrop of the limitations of RESs as stated in above, hydropower

comes with inherent feature of catering to fluctuating peak load demands
and has a beneficial role to play in supplying Quality Power. The Quality
Power encompasses hosts of factors i.e. the powers supplied at fairly
constant voltage and constant frequency and which is free from harmonics
having pure sinusoidal wave shape etc. and also free from any fluctuations
etc. Even though, gas stations do have the capability to cater to these kinds
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Public Policy Analysis Paper

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of demands, the non-availability of gas and that too at affordable prices

would make them the unlikely choice if given the option.
Though the hydro capacity addition has been taking place in successive
plans / years, the rate of capacity addition from hydro is not in consonance
with thermal capacity addition, thereby the hydro share in the total Installed
Capacity has been declining over the years as shown below:-

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4.3.2 HPO: An important way to boost hydro power in India

En
d
19
o
1916190 1 1 1 1 1 1 1 1 1 1Efn9 E As
5095-666916 96 97 97 98 98 98 99 99 99dtho nd on
2- 5- 9- 3- 7- 0- 4- 9- 2- 6- 9- fP o
M
63 66 70 74 78 81 85 90 93 97 001la f
0nt 11 arc
h
h
Pl th P ,20
an la
14
n

In order to improve hydro share in the energy mix, faster rate of capacity
addition needs to be endeavored. The measures required for facilitating
hydro development include:

Expediting environmental /forest clearances,

Better financial package to the hydro developers

Other policy intervention like obligating States for purchase of certain

% age of hydro energy in their energy mix. This may be referred as

Hydro Purchase Obligation (HPO), on the lines of Renewable

Hydro Share in Installed Ca
Purchase Obligation (RPO).

19
47

60
51
50
46 44
Government is working separately for expediting
E&F clearances
and
for
42 42 3
41
40
37
37
30
33
providing better financial package for hydro 20
projects. The present
proposal
10
is for devising HPO.
0

As per the present assessment, the exploitable hydro potential of the country
is of 1, 45,000 MW. Out of this potential , only around 41000 MW ( above
25 MW IC )has been exploited so far, while around 15000 MW is under
construction (as on 1.3.2015- CEA Report) and balance 89,000 MW is yet to
be exploited. Thus, there is a lot of potential in Hydro power is yet to be
tapped up.
In view of the above it is proposed that each State may be mandated to have
a certain percentage of hydro energy in the total energy mix of that State.
This methodology will pave way for additional capacity addition at National
level whereby hydro energy could be procured by the States for achieving
the mandated hydro energy share by the end of 13th Plan.
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Public Policy Analysis Paper

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4.3.3 Methodology for implementation of HPO

18th EPS indicates State wise energy share at the end of 12 th Plan. The total
energy requirement at the end of 12th Plan (National level) is 1904 BU.
Based on 18th EPS data a capacity addition of 88,537 MW has been planned,
which includes about 12,000 MW from hydro project.
As against 12,000 MW, feasible capacity addition during 12 th Plan is of the
order of 7,251MW.
As 12th Plan is already midway and hydro projects are at various Stages of
construction and any policy intervention at this stage may not alter the
resultant capacity addition during 12th Plan, hence, the present exercise is
proposed to be implemented during 13th Plan with the base %age hydro
energy share at the end of 12th Plan.
Considering State wise actual hydro energy share and realistic hydro
capacity addition of 7251 MW, State wise hydro energy share at the end of
12th Plan (2016-17) has been assessed.
For arriving the incremental hydro energy share at the end of 13 th Plan
following criteria have been considered:
Incremental State wise Hydro energy share required (on the base year)
to be added based on the range of Hydro energy share in the total
energy amongst States at the end of 12th Plan. Wherever the existing
%age of hydro share (in total energy) is lesser the higher incremental
hydro energy is proposed.
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Public Policy Analysis Paper

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%age addition in hydro energy share over the hydro energy share at
the end of 12th Plan based on the average cost of procurement of
Power w.r.t. average cost at all India level. Wherever the procurement
cost is lower the proposed incremental hydro energy is higher.
Different %age of increase in hydro energy share has been considered
for different ranges of %age peaking requirement of the state (which
is based on load factor). Wherever the peaking requirement is lower
the proposed incremental hydro energy is lower.
To factor in impact of variability in renewable, 20% of renewable
capacity is considered.
4.3.4 Calculation of Hydro Energy %age for HPO :
Based on the criterion mentioned above , State wise incremental % addition
in hydro energy (over and above the hydro energy at the end of 12 th Plan)
during 13th Plan has been arrived at as mentioned below ( source : MOP) :
0.2% to 1.0%

-Arunachal Pradesh, Uttrakhand , Meghalaya

1.1% to 1.5%

- J&K, Assam

1.9% to 2.0%

- Manipur, Orissa, Mizoram, Nagaland, Tripura

2.2% to 2.5%

- Haryana, MP, Kerala, Punjab, Chandigarh

3.0% to 3.2%

- UP, DNH, Delhi, D&D, Maharashtra, Karnataka,

Bihar, Jharkhand, West Bengal

3.4% to 3.7%

- Chhattisgarh, Goa, AP, Pondicherry,

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Public Policy Analysis Paper

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4.9%

- Gujarat

5.6%

-Tamil Nadu

6.0%

- Rajasthan

As States of Sikkim and Himachal Pradesh will have 100% of hydro

energy, no increase is proposed.
4.3.5 Implementation mechanism for HPO
For implementing the proposed methodology for increasing hydro energy
share would call for revision in relevant clauses of the Electricity Act,
2003/Tariff Policy Regulations under the EC Act, 2003 which the Ministry
of Power may take up on priority in consultation with States , SERCs CERC
and all stakeholders.
After critical evaluation of all aspects, it may be recommended that there is
a need to introduce HPO as a policy initiative and the HPO limit may be
fixed at around 4% at the initial stage ( for HEPs of above 25 MW IC ),
which may be enhanced gradually in due course. This % will be in addition
to % recommended for RPO for REC. This will definitely give a boost to
the green energy.
4.4

MASSIVE SOLAR MISSION

Renewable energy sources and technologies have potential to provide
solutions to the longstanding energy problems being faced by the developing
countries like India. Solar energy can be an important part of India's plan not
only to add new capacity but also to increase energy security, address
environmental concerns, and lead the massive market for renewable energy.
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Solar thermal electricity (STE) also known as concentrating solar power

(CSP) are emerging renewable energy technologies and can be developed as
future potential option for electricity generation in India. In this paper,
efforts have been made to summarize the availability, current status,
strategies, perspectives, promotion policies, major achievements and future
potential of solar energy options in India.
4.4.1 India faces the dual challenge of sustaining its rapid economic growth while
dealing with the global threat of climate change. In addition, it needs to
tackle challenges related taxonomic energy security, energy access, and the
local environment. To counter these, a National Action Plan on Climate
Change (NAPCC) was launched in 2008. One of the key missions (out of
eight) formulated under the NAPCC is the Jawaharlal Nehru National Solar
Mission (JNNSM), which was launched in 2010 with the aim of deploying
an installed capacity of 22,000 MW of solar power by 2022 (JNNSM 2010).
The JNNSM was motivated by two major factors. First, to reduce
dependence on fossil fuels and help improve energy security and second, by
the technical potential of solar energy, which is practically unlimited. Most
parts of India receive an average annual global solar radiation of 1,600-2,000
kWh/m2, much higher than many countries that have been successful in
deploying solar energy, such as Germany and Japan (Garud and Purohit
2010). Indias solar potential of 6 billion GWh can be used to generate much
more than the countrys current electricity needs (Garud and Purohit 2010;
CERC 2011).
It has been close to four years since the JNNSM was launched. During this
time, India has seen tremendous growth in solar power deployment from
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10 MW in 2009 to more than 2,600 MW by May 2014 (MNRE 2014). Given

that solar power is still more expensive than conventional energy (IRENA
2012a); it is not competitive in the marketplace. Therefore, this growth is
attributed mainly to the state policy of Gujarat and the JNNSM (NRDC
2012a; BTI 2013a) in particular, to the long-term fixed tariffs guaranteed
by these policies2 (Nelson et al 2012). According to the Ministry of New
and Renewable Energys (MNRE) records, the JNNSM had contributed
approximately 640 MW of solar capacity by June 2014.
Based on these numbers it can be hypothesized that the JNNSM has been
effective in deploying solar power in India. Further, it has been asserted that
the JNNSM has been able to deploy solar power in a cost-effective manner,
primarily due to competitive bidding. This has influenced many other States
to come up with their own solar policies based on competitive bidding for
solar power deployment and to fulfil their renewable purchase obligations
(RPOs) (MNRE 2011), in particular solar-specific ones (MOP 2011). Its
targets are to be achieved in three phases Phase 1 (until 2013); Phase 2
(2013-17); and Phase 3 (2017-22).
Though the JNNSM has contributed to increased deployment of solar power
in India, this does not fully inform us of its effectiveness. The existing
literature indicates that the effectiveness of deployment can be measured in
many different ways, including simple measures such as capacity added, and
complex measures that measure the ratio of capacity added to generation
potential (IEA 2008; IEA 2011)
Phase 1 of the JNNSM was implemented by the National Vidyut Vyapar
Nigam (NVVN), the power trading arm of the National Thermal Power
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Corporation (NTPC), the largest electricity provider in India. Solar energy is

more expensive than conventional energy (IRENA 2012a), and to reduce the
delivered cost of solar electricity, the NVVN would buy solar energy at the
corresponding levelised cost discovered through reverse bidding, bundle it
20%-80% with energy from traditional power sources (for example, coal),
and sell the bundled energy to customers. With a 20%-80% bundling, which
essentially corresponds to bundling 1 MW of solar power capacity with 1
MW of coal power capacity, for every MW of solar energy, the NVVN
would

bundle

MW

of

energy

from

coal

(NRDC

2012a).

The solar tariff was fixed by a pay-as-you-bid scheme where the developers
providing the highest discounts from the Central Electricity Regulatory
Commission (CERC) feed-in tariff benchmark were selected. The most
important contribution of the JNNSM has been providing an impetus to solar
energy in particular, solar PV in India, and in a cost-effective manner,
without which no deployment at scale can be justified.
Recently, the Union Minister of Power, Shri Piyush Goel has announced a
very ambitious target of one lakh MW for solar capacity addition. This will
definitely revolutionize the renewable energy sector.

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CHAPTER-5
ADDITIONAL ASPIRATIONAL RECOMMENDATIONS/GOALS FOR
DECENTRALISED RENEWABLE ENERGY APPLICATIONS

5.1

DECENTRALISED SOLAR ENERGY SYSTEMS

The greatest potential area of off grid relates to solar technologies. These
include solar water heating systems, home lighting systems which include
solar lanterns, solar cooking systems, solar pumps, small power generating
systems. Under the Solar Mission, it has been proposed to cover 2 ,000 MW
equivalent off-grid power systems by 2022 which includes all the above,
except solar water heating systems for which there is a separate target of 20
million sq. meters. Within the off grid component, there is a separate target
of covering 20 million rural households with solar lights. This includes both,
coverage under the Remote Village Electrification Programme as well as
through loans given by banks in areas where grid is available to meet unmet
demand. These are very ambitious targets. However, our aspiration goals
would be an additional 2,000 MW in the same period. This would entail
coverage of niche areas like solarisation of telecom towers, large scale use
by industrial establishments in the manufacturing sector where diesel
generating sets have been installed for partly mitigating daytime use of
diesel, increased coverage in areas like Ladakh where diesel is the prime
source of energy generation, etc. This would require support of other
Ministries and industries and more resources.

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5.2

RURAL ELECTRIFICATION THROUGH RENEWABLE ENERGY

An extension of off grid relates to rural electrification. Over 40% of the
countrys population is currently denied energy access. This has become a
major problem and, inspite of large investments under the RGGVY for rural
transmission, it has been found increasingly difficult to provide this access,
especially in certain identified areas, partly because of continuing supply
constraints. But biomass and Solar PV based solutions are possible. Biomass
based solutions are relatively more viable commercially and can be
implemented with some Government support. The Group would like to
recommend that about 10,000 villages from biomass-based systems and over
1000 villages from solar power up to 2022 should be covered. The latter
will, however, require substantial Government support or financial support
which may come as grants through some fund or the other to meet the initial
capital cost. This would be apart from the target of coverage of 20 million
households to be covered with solar lights. These achievements would make
a huge dent in the critical matter relating to energy access.

5.2

GREEN BUILDINGS
Almost 40% of the total energy is utilized in the building sector. A green
building designed through solar passive concepts and including active
renewable energy systems can save substantial conventional energy apart
from generating energy for meeting various requirements in different
seasons. Keeping in view our climatic conditions, a National Rating System
- GRIHA has been developed which is suitable for all types of buildings in
different climatic zones of the country. It is expected that the Rating system
will promote the design and construction of green buildings in the country.
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The Group would recommend to pursue promotion of green buildings in a

mission mode and intends to undertake a huge capacity building effort in
this regard. It aspires to have 200 million sq. mtr. GRIHA rated buildings by
2022. This concept is also being promoted for campus developments. It is
hoped that this would have become the norm by then.
5.3

RENEWABLE ENERGY BASED COOKING SYSTEMS

Another important area of off grid relates to rural cooking needs. This
involves the Family Size Biogas Plants Programme as well as covers the
issues of cook stoves, both at the level of the individual households or the
community level. The Group would like to recommend for traditionally
doing about 1 lakh family size biogas plants annually. Cook stoves is a big
problem as either biomass is inefficiently burnt, creating both emissions and
health hazards and substantial higher consumption of firewood as far as
community cook stoves are concerned or the cost of the stove becomes too
high. The Group would like to recommend that a National biomass cook
stove should be launched to address both. A research programme has also
been initiated to identify the right stoves which could be used by
households. At the same time, a pilot project has been launched to test the
efficiency and marketability of improved community cooking stoves. This
pilot project covers governmental institutions like Anganwadi Centres,
schools for midday meals and tribal hostels, etc. apart from private dhabas.
The Group would like to recommend to enable distribution of over 10
million stoves for households with some limited Government support by
2022 which would require additional funds and half a million community
stoves to be installed in market mode. Naturally, the latter would require
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support of line Ministries including the Ministry of Tribal Affairs,

Department of Women and Child Development and Department of
Elementary Education.
In addition, the Group would like to recommend to cover at least 1000 solar
cooking systems by 2022. All institutions including large institutions with
hostels, hospitals/medical colleges, military/para-military establishments,
industrial organizations wherever large number of meals is cooked should
be targetted. Many such systems have already been installed and technology
refinements are taking place. Essentially, these reduce the consumption of
cooking gas. Reduction in subsidy on cooking gas would make this target
much easier to achieve. That may also help growth of solar dish cookers for
individual use.
The Group would like to recommend to initiate research into various solar
cooling applications. Aspirational goals would include commercially viable
systems to be developed in the next five years. Thereafter, this could be an
area for upscaling. The group visited an NGO called Akshaya Patra which is
the worlds largest mid-day meal provided to school children. The NGO
was a classic example for use of bio-mass energy for its large kitchen which
caters to around more than 10 lakh meals per day.

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CHAPTER-6
ROLE OF CENTRAL AND STATE GOVERNMENTS
6.1

The following role of Central and State Governments is envisaged in the

Act.
Central - to notify rules and regulations under various provisions of the
Act, provide initial financial assistance to BEE and EC fund,
Coordinate

with

various

State

Governments

for

notification,

enforcement, penalties and adjudication.

State - to amend energy conservation building codes to suit the regional
and local climatic condition, to designate state level agency to
coordinate, regulate and enforce provisions of the Act and constitute a
State Energy Conservation Fund for promotion of energy efficiency.
NGOs Theycan play a vital role for development of this sector.
IPPs - Independent Power Producers (IPPs) have the capacity and the
financial strength to develop green energy in India.

*****

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BIBLIOGRAPHY
1.
2.
3.
4.
5.

http://www.mnre.gov.in (Ministry of New and Renewable Energy)

http://powermin.nic.in (Ministry of Power)
http://www.bee-india.nic.in/index1.php (Bureau of Energy Efficiency)
http://dsm.iea.org (IEA)
Central Electrification Authority (CEA), (August 2014): 'Monthly Generation
Report (Renewable Energy Sources) 2013-14 (August 14)'. Available online at:
(http://www.cea.nic.in/reports/ articles/god/ renewable_energy.pdf)
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