15,000 MW new grid interactive capacity in 11th plan
According to the Vol III of Plan document, the 11th Plan has targeted to add 14,000 MW capacity of grid interactive power through new and renewable energy sources. In addition 950 MW of off grid wind/hybrid, small hydro and bio mass power and around 50 MW of solar power is also planned to be achieved that would take the total capacity through NRES to around 15,000 MW.
The various program of the ministry of new & renewable energy for the 11th Plan include:
- Grid Interactive and Distributed Renewable Power.
- Renewable Energy for Rural, urban, industrial and commercial Applications.
- Research & Development.
- Equity support to IREDA.
In grid connectivity, wind power would be the major constituent with 10,500 MW capacity followed by small hydro 1,400 MW and biomass 1,200 MW. Cogeneration would add 500 MW and urban and industrial waste to energy sources 200 MW each. Total power capacity targeted for the plan is around 92,577 MW and renewable would account for around 9.7% of total grid connected capacity of 2.25 million MW at the end of the plan period. Public sector outlay for NRES has been fixed at INR 10,460 crore while the total investment requirement for projects would be over INR 60,000 crore.
Capital subsidies that encourage investment without ensuring outcomes would be phased out. Incentives provided for grid connected power from renewable sources would be linked to generation and not to power capacities created. Thus power regulators will be asked to create alternative incentive structures such as mandated feed in laws or differential tariffs for grid interactive power. Grid interactive renewable power may also be promoted by mandating a renewable portfolio standard for all power distribution companies and providing a subsidy for each unit of renewable electricity purchased. The utilities would be free to meet their requirement by purchasing certificates from other utilities that may have a surplus of renewable electricity in their portfolios.
To increase availability of finance for new and renewable energy, IREDA is to be restructured by broad basing its equity structure. IREDA should be permitted to issue Capital Gains Bonds similar to those issued by REC and NHAI to the tune of INR 300 crore per year to 400 crore per year during the Plan. A national policy has to be finalized to create a competitive bio fuels industry.
The performance of grid interactive NRES over the 10th Plan had exceeded targets with commissioning of 6,711 MW more than twice of 3,075 MW envisaged for the plan. By the end of the Plan, the contribution of power generation from NRES had reached 10,161 MW. Of this wind power accounted for 7,082 MW, small hydro 1958 MW, biomass 1118 MW and solar 3 MW.
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