Energy Conclave 2006 - PowerPoint PPT Presentation


PPT – Energy Conclave 2006 PowerPoint presentation | free to download - id: 22335c-ZDc1Z


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation

Energy Conclave 2006


Only buyer SEBs Not willing to pay more for RE Power. ... Preferential treatment of renewables is important for creating 'critical mass' ... – PowerPoint PPT presentation

Number of Views:26
Avg rating:3.0/5.0
Slides: 11
Provided by: mukesh4
Learn more at:


Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Energy Conclave 2006

Energy Conclave 2006
Implementing the Integrated Energy Policy The
Way Forward
  • Presentation by
  • Debashish Majumdar, Managing Director
  • Indian Renewable Energy Development Agency
  • New Delhi
    July 27, 2006

Need for Policies in RE Sector
  • To create markets
  • To reduce risks
  • Provide acceptable rates of return
  • Create conditions for sustainable profitable

What is required ?
  • Long term regulatory frameworks
  • To create conducive investment climate
  • Niche public finance mechanisms
  • To address specific technology gaps / barriers
  • To aid commercialization through project
  • End-user Finance Mechanisms
  • Carefully designed public support initiatives

Regulatory Issues affecting Growth of RE Sector
  • Frequent change in policies
  • Tariff not conducive for renewable energy
  • Third Party sales discouraged in most States.
  • High wheeling charges.
  • Cost of infrastructure development, evacuation
    facilities and transmission lines left to be
    borne by developers.
  • Late or Non-payment by Electricity off-takers.
  • Government / forest land issues.

Renewable Energy - Key Obstacles to Growth
  • Absence of assured customer / market
  • All RE projects are
  • Small in size
  • Widely dispersed in remote locations
  • Lacking infrastructure (evacuation facilities,
    roads etc )
  • Generally high cost ( not factoring positive
    environmental and social impacts)
  • 90 of small hydro potential is in hilly areas
    which have no industry No demand.
  • Only buyer SEBs Not willing to pay more for RE

Renewable Energy - Key Obstacles to Growth
  • Absence of aggregating agency / trader.
  • All small RE projects are forced to market their
    products (electricity) directly to monopoly buyer
    (SEBs) Buyers Market.
  • Higher cost of generation due to
  • Small size ( no economies of scale)
  • Disadvantaged locations
  • Lack of adequate capital at affordable cost.
  • Absence of National Renewable Energy Policy.

The Way Forward - Suggestions
  • Policies to be consistent and valid for long term
  • Fiscal benefits to be linked to performance
    preferably through tradeable credits.
  • State Nodal Agencies to develop shelf of
    Bankable Projects complete with all necessary
    clearances to be made available to private
    investors through suitable bidding mechanism.
  • Special Awareness Focused Training Programmes
    on RETs for senior members of SERCs SEBs.
  • Availability of adequate and affordable

Resource Mobilization for RE Sector
  • Setting up of Renewable Energy Development Fund
  • Cess of Rs 5/MT Coal
  • Cess of Re 1/LPG Cylinder
  • Cess of 1 paisa / Kwh on conventional electricity
  • Green Stamp Duty on IPOs
  • Setting up of RE Innovation Fund to provide
    Venture Capital for taking RD and demo projects
    to commercialization.
  • Establishment of specialized Assets
    Re-construction Company to tackle NPA
  • IREDA to be converted to Apex FI similar to
    NHB, NABARD etc.
  • MoEF, MoRD to contribute to IREDAs equity.

  • Conducive policies are the strongest drivers for
    market development.
  • Preferential treatment of renewables is important
    for creating critical mass.
  • Availability of specific funds for RE development
    and dedicated institutional mechanism for
    financing of RE sector is critical.
  • Boosting of private sector confidence required
    for larger investments
  • Strong political will and commitment required in
    the form of Renewable Energy Policy Statement or
    Renewable Energy Act.

Thank you