Chennai: After scaling up renewable energy (RE) target to 175 Gigawatts (GW) by 2022, ministry of new and renewable energy has released the draft National Renewable Energy Act (NREA), 2015, for public comments to encourage renewable energy generation in the country. The draft bill promises to fulfil a long pending demand of the RE sector, particularly wind power generators, for deemed generation status. Industry sources said if that status was bestowed on the renewable energy sector, it would help attract investments.
On deemed generation, the draft bill, said if the grid was not available for power evacuation after the project had commenced generation or was already operational, the power would be considered to be generated and sold. The energy charges would be paid to the RE generator. “Detailed guidelines in this respect shall be issued as part of (National) RE policy,” it said. “We welcome the draft bill providing deemed generation status to the renewable energy sector on a par with the conventional power sector,” Indian Wind Power Association president Prof K Kasturirangaiyan. Till date, the thermal stations were enjoying the deemed status and they were paid capacity charges even if they were asked to back down, he said.
“Without the deemed generation status, wind mills were often asked to back down. It results in huge financial loss. As per the draft provision, wind mills will be paid if it was backed down by the grid managers,” he said. The MNRE has set an ambitious target of adding 1,75, 000 MW of renewable energy, including 60,000 MW of wind power, by 2022, he said. “The ambitious capacity addition for wind mills will be achieved only if the investors are sure of returns. Last two to three years, there was a meagre addition of wind mills in TN due to issue over non evacuation of power.
If the deemed generation status was given, investors will have confidence and they will install more wind mills,” he said.The Centre for Science and Environment (CSE) has welcomed the draft National Renewable Energy Act and has made a few suggestions which it will share with the Ministry of New and Renewable Energy (MNRE). “The draft Act emphasises that RE should be mainstreamed by offering financial incentives and infrastructural support to manufacturers and developers so as to bring RE on the same level playing field as fossil fuels,” said CSE’s Deputy Director General Chandra Bhushan in a release.
