Grid-interactive power installed capacity from renewable Energy sources reaches 10,250 mw in the 10th plan
The grid-interactive power installed capacity from renewable energy sources in the
country has reaches to 10,250 MW at the end of the 10th Plan, i.e., upto 31.3.2007.
A capacity addition of 14,000 MW from renewable energy sources is proposed during
the 11th Plan. These sources are wind, biomass, solar and small hydro system.
To attract corporate/private investment in renewable energy sector, the Government
is providing a mix of fiscal and financial incentives that include capital/ interest
subsidy, accelerated depreciation, nil/ concessional excise and customs duties.
Further benefit under Section 80-1A of Income Tax Act 1961 is available to
undertakings setup for the generation or generation and distribution of Renewable
power in India. This apart, preferential tariff for grid interactive renewable power is
being given in most potential States.
Total 33 grid interactive solar photovoltaic power plants Installed
Electricity production to reach 2.55 million units in a year
A total of 33 grid interactive solar photovoltaic power plants have been installed
in the country with financial support from the Government. These plants, with
aggregate capacity of 2.12 Megawatt, are estimated to generate about 2.55
million units of electricity in a year. In addition, around 14.5 lakh decentralized
off-grid solar photovoltaic systems aggregating to about 125 Megawatt capacity
have been installed in the country, which is capable of generating about 150
million units in a year. Further, a collector area of about 2.15 million square
meter has been installed for solar water heating applications. The amount
of energy generation depends on the use pattern of the system and climate
of the place. Typically, a solar water heating system with 2 square meter
of collector area can generate energy equivalent to up to 1500 units of electricity
when the system is used for about 300 days in a year. The Government has taken
several measures to reduce the cost of solar energy systems, which include:
(i) research and development to improve their performance and reduce the consumption
of materials,
(ii) subsidy on selected solar energy systems;
(iii) interest subsidy to provide soft loan to users and the manufacturers;
(iv) concessional or nil import duty on some of the raw materials, components
and products; (v) excise duty exemption; and
(vi) 80% accelerated depreciation in the first year etc.
Many incentive have been given to private agencies for research and generation
of solar energy. All academic, research institutions and industries, including
the private institutions are engaged in research in solar energy. They are
eligible to receive grant for undertaking R&D. In addition, expenditure on
R&D by the private industries is eligible for deduction from profits under
Income Tax Act. Under grid interactive solar power generation, private companies
are eligible to get production based incentive for power fed to the grid from
megawatt capacity solar power plants set up on build own and operate basis
in the country. Proposal from any project developer with a maximum aggregate
capacity of 5 MW, either through a single project or multiple projects of
a minimum capacity of 1 MW each, are being considered under the programme.
Preference is given to the projects from the States where the State Electricity
Regulatory Commissions (SERCs) have announced or are in the process of announcing
tariff for solar power. For projects approved and commissioned by 31st December,
2009, the Ministry will provide generation based incentive up to Rs.12 per
kWh for solar photovoltaic power and Rs.10 per kWh for solar thermal power
after taking in to account the tariff provided by the SERC or the utility.
Setting Up Of National Biofuel Development Board
The Government is planning to set-up National Biofuel Development Board. Under
the Allocation of Business Rules, the Ministry of New & Renewable Energy has been
given the responsibility of setting up of a National Bio-fuel Development Board. The
proposal for setting up of the Board including its draft Terms of Reference and
composition has been submitted for necessary approvals.
The Ministry of Agriculture is providing subsidy through National Oilseeds and
Vegetable Oils Development (NOVOD) Board to the farmers, Non-Governmental
Organizations (NGOs), individuals etc. for production of Tree Borne Oilseeds (TBOs),
including bio-fuel crops, under the Integrated Development of Tree Borne Oilseeds
Scheme. Under this scheme, 30% credit linked subsidy is being provided, which is
linked with 50% term loan to be taken from bank, and 20% beneficiary share in the
form of land, labour etc. Further, the Ministry of Rural Development has provided
financial assistance to the tune of Rs.49.00 crore to 9 identified States in 2005-06
and Rs.49.50 crore to 15 States in 2006-07 for the purpose of raising jatropha/pongamia seedlings and plantation of the same under the ongoing
States/Central Sector area development programmes.
The grid-interactive power installed capacity from renewable energy sources in the
country has reaches to 10,250 MW at the end of the 10th Plan, i.e., upto 31.3.2007.
A capacity addition of 14,000 MW from renewable energy sources is proposed during
the 11th Plan. These sources are wind, biomass, solar and small hydro system.
To attract corporate/private investment in renewable energy sector, the Government
is providing a mix of fiscal and financial incentives that include capital/ interest
subsidy, accelerated depreciation, nil/ concessional excise and customs duties.
Further benefit under Section 80-1A of Income Tax Act 1961 is available to
undertakings setup for the generation or generation and distribution of Renewable
power in India. This apart, preferential tariff for grid interactive renewable power is
being given in most potential States.
Total 33 grid interactive solar photovoltaic power plants Installed
Electricity production to reach 2.55 million units in a year
A total of 33 grid interactive solar photovoltaic power plants have been installed
in the country with financial support from the Government. These plants, with
aggregate capacity of 2.12 Megawatt, are estimated to generate about 2.55
million units of electricity in a year. In addition, around 14.5 lakh decentralized
off-grid solar photovoltaic systems aggregating to about 125 Megawatt capacity
have been installed in the country, which is capable of generating about 150
million units in a year. Further, a collector area of about 2.15 million square
meter has been installed for solar water heating applications. The amount
of energy generation depends on the use pattern of the system and climate
of the place. Typically, a solar water heating system with 2 square meter
of collector area can generate energy equivalent to up to 1500 units of electricity
when the system is used for about 300 days in a year. The Government has taken
several measures to reduce the cost of solar energy systems, which include:
(i) research and development to improve their performance and reduce the consumption
of materials,
(ii) subsidy on selected solar energy systems;
(iii) interest subsidy to provide soft loan to users and the manufacturers;
(iv) concessional or nil import duty on some of the raw materials, components
and products; (v) excise duty exemption; and
(vi) 80% accelerated depreciation in the first year etc.
Many incentive have been given to private agencies for research and generation
of solar energy. All academic, research institutions and industries, including
the private institutions are engaged in research in solar energy. They are
eligible to receive grant for undertaking R&D. In addition, expenditure on
R&D by the private industries is eligible for deduction from profits under
Income Tax Act. Under grid interactive solar power generation, private companies
are eligible to get production based incentive for power fed to the grid from
megawatt capacity solar power plants set up on build own and operate basis
in the country. Proposal from any project developer with a maximum aggregate
capacity of 5 MW, either through a single project or multiple projects of
a minimum capacity of 1 MW each, are being considered under the programme.
Preference is given to the projects from the States where the State Electricity
Regulatory Commissions (SERCs) have announced or are in the process of announcing
tariff for solar power. For projects approved and commissioned by 31st December,
2009, the Ministry will provide generation based incentive up to Rs.12 per
kWh for solar photovoltaic power and Rs.10 per kWh for solar thermal power
after taking in to account the tariff provided by the SERC or the utility.
Setting Up Of National Biofuel Development Board
The Government is planning to set-up National Biofuel Development Board. Under
the Allocation of Business Rules, the Ministry of New & Renewable Energy has been
given the responsibility of setting up of a National Bio-fuel Development Board. The
proposal for setting up of the Board including its draft Terms of Reference and
composition has been submitted for necessary approvals.
The Ministry of Agriculture is providing subsidy through National Oilseeds and
Vegetable Oils Development (NOVOD) Board to the farmers, Non-Governmental
Organizations (NGOs), individuals etc. for production of Tree Borne Oilseeds (TBOs),
including bio-fuel crops, under the Integrated Development of Tree Borne Oilseeds
Scheme. Under this scheme, 30% credit linked subsidy is being provided, which is
linked with 50% term loan to be taken from bank, and 20% beneficiary share in the
form of land, labour etc. Further, the Ministry of Rural Development has provided
financial assistance to the tune of Rs.49.00 crore to 9 identified States in 2005-06
and Rs.49.50 crore to 15 States in 2006-07 for the purpose of raising jatropha/pongamia seedlings and plantation of the same under the ongoing
States/Central Sector area development programmes.
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