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Home News Power Sector News Utilities should buy 5% renewable energy from 2009-10- CERC Chairman

Utilities should buy 5% renewable energy from 2009-10- CERC Chairman

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Pramod DeoPramod Deo, Chairman of the central electricity regulatory commission (CERC) said that all power utilities in the country will have to buy at least five per cent of their grid purchase from renewable energy sources from 2009-10 onwards.The Cerc will fix the dynamic minimum purchase standard for renewal energy which will help reduce emission from the electricity sector. "While the minimum purchase standard will be fixed, from 2009-10 onwards all electricity utilities in the country will have to buy renewable energy. There will be one per cent increase in the purchase of renewable energy for every year for the next 10 years," he said.

Deo was speaking on National action plan on climate change and the role of electricity regulator to mark the fifth foundation day of Pune-based World Institute of Sustainable Energy (Wise).

Deo pointed out that at least 20 state electricity regulatory commissions (SERCs) have already determined the percentage of energy that has to be bought from renewable sources. "While Karnataka and Tamil Nadu are currently buying 10 per cent of their grid purchase from renewable sources, Maharashtra has reached four percent target," he said.

Deo said that the nation-wide target for purchase of renewable energy needed to be fixed besides creation of a strong enforcement and penalty mechanism to create competition among renewable energy generators and also a system for inter-state sale and purchase of renewable energy.

Deo revealed that the ministry of new and renewable energy is also conducting a feasibility study for introducing renewable energy certificates. "One certificate will be equal to 1 MWh of renewable energy generated. The certificates can be traded to meet the mandatory targets of renewable energy purchase," he explained.

Elaborating on the role of CERC in implementation of an action plan on climate change, Deo said that issues like research and development in solar energy, promotion of innovation to make solar energy equipment affordable and enable long-term storage of solar power need to be tackled. "Attention will have to be paid to energy efficiency, creating a mechanism to fund demand side management programme, develop fiscal instrument to promote energy efficiency and pushing energy conservation building code," he said.

Deo said that demand side management (DSM) will assume importance and every power distribution company will have to submit its DSM plan that will cover time of day tariff, rebates and incentives. "Many of the aspects including modernisation of thermal power plants and phasing out of outdated and highly polluted plants will be tackled in the national tariff policy for 2009-10 to be announced by the Cerc", Deo stated.

Source - Times of India

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