Transmission Tariff for Restructured Indian Power Sector with Special Consideration to Promotion of Renewable Energy Sources

Randhir Singh
Department of Electrical Engineering National Institute of Technology (N.I.T) Hamirpur, India randhirsoni@gmail.com
Abstract— The electricity market is undergoing a tremendous transformation not only in India but throughout the world as it move towards a more competitive environment. The growing complexity of this transformation – price instability, an aging infrastructure, changing regulatory environments are coursing energy consumers and electric utility to take another look at the benefit of renewable generation. The combination of utility restructuring, technology evolution, recent environmental policies provide the bases for renewable to progress an important energy option in near future for India. Utilities restructuringopens energy market, allowing the customers to choose energy providers, methods of delivery, and attendant services etc. Moreover, the market forces favor small modular power technology that comes from renewable option (i.e. Small hydro, wind, solar and biomass) and that can be installed quickly in response to market signals. India has unique renewable energy resources (RES) and development of country depends to a great extent on harnessing these sources. As Conventional sources of energy pose significant threats to our current and future global security, environmental quality, health and social well being, so there is urgent need to promote renewable in present Indian restructured power sector in sustainable and eco-friendly manner. Preferential transmission tariff for renewable promotion along with other promotion policies plays a significant role in overall redevelopment of renewable energy sources. Hence current status, various issues, regulatory policies and incentives, special tariff for promotion of renewable energy sources in Indian restructured power sector are discussed in this paper. This will make renewable more attractive in the future competitive electricity market. Keywords- Competitive electricity market, power sector, renewable energy sources, renewable policy, renewable tariff

Y.R.Sood
Department of Electrical Engineering National Institute of Technology (N.I.T) Hamirpur, India yrsood@gmail.com largely depends on the thermal power generation and a right fuel mix, based on well-diversified portfolios of indigenous and imported fuel would be required. The another advantage using renewable resources is that they re distributed over a wide geographical area, ensuring that developing regions have access to electricity generation at a stable cost for the long-term future. This is not the case with fossil fuels in particular petroleum products. The increase in energy consumption, particularly in the past several decades, has raised fears of exhausting the globes reserves of petroleum and other resources in the future. The huge consumption of fossil fuels has caused visible damage to the environment in various forms. Every year human activity dumps roughly 8 billion metric tons of carbon into the atmosphere, 6.5 billion tons from fossil fuels and 1.5 billion from deforestation [2]. It creates lot of environment problem and finally our ecological cycle will be affected. The energy industry needs to get more from existing fields while continuing to search for new resources. Due to technological advancement vehicles are made with improved fuel efficiency and also perfect hybrid vehicle are made. Also the improvements are needed so that wind, solar and hydrogen can be playing more valuable sources in the energy field. During the nineties decade, many electric utilities throughout the world have forced to change their way of operation and business, from vertically integrated mechanism to open market system [1]. The goal of this change is to enhance competition and bring consumers new choices and economic benefits. Restructuring in Indian power sector started with the unbundling of Orissa state power utility, and soon followed by many other states throughout India [2]. India is a developing and fast-growing large economy and faces a great challenge to meet its energy needs in a responsible and sustainable manner. In the recent past, India has been growing at an average rate of 8.5%. Growth of economy is reciprocally linked to energy usage, and consequently the energy requirements of the country have increased phenomenally in the last couple of years. Over the years, Indian power sector has experienced a four-time increased in its installed capacity—a jump from 30,000MW in 1981 to over 143,000MW by 2009 [3]. The Indian power sector is predominantly based on fossil fuels,

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INTRODUCTION

Power sector is one of the key sectors contributing significantly to the growth of country’s economy. Power sector needs a more useful role to be played in defining, formulating and implementing the research projects with close involvement of all utilities such that the benefits reaches the ultimate consumer. Power sector being highly technologies intensive, Research and Development plays a major role in its developmental plans and to find solutions for the problems existing in the power systems. A Country

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Government of India (GOI). small hydro. So there is also considerable environmental and resource degradation because of a higher dependence on fossil fuels. Development in technology and a host of promotional policies have helped adoption of renewable energy sources in electricity generation in India. Generation based on large hydropower has continued to grow very slowly due to a number of socio-environmental barriers and has a quarter shares in capacity at present [5]. exacerbates its foreign exchange debt burden to the Indian economy.18 MW as on Jan 2009. and operations [6]. This dependence on fossil fuels. CURRENT STATUS OF RENEWABLES IN INDIA The renewable energy has been promoted for use in various applications in India including electricity generation. Renewable technology capacity. 2 . Electricity generation from renewable is assuming increasing importance in the context of large negative environmental externalities caused by electricity generation from fossil fuels based energy. sulphur dioxide (S02). In this connection advent of the Electricity Act 2003 (E’ Act 2003) [9] that was notified by the Ministry of Power in June 2003 with other policies (National Electricity Policy and National Tariff Policy)appears to be in the helm of affairs for the promotion of renewable energy at the state as well as to national level in India. by the year 2012. (renewable in this paper refer to small hydro. biomass (cogeneration and gasifiers). has a near about 8 percent share in the overall generation capacity at present [5-6]. So there is a great need of renewable energy source in Indian power sector to meet future energy demand and remove GHG emission. 45.The cumulative achievement of power through RE sources totaled 14224. mainly due to the poor quality of Indian coal with an average ash content of 40 percent or high ash content. in continuation with the EA 03 and the National Electricity Policy also emphasizes the importance of setting renewable energy quotas and preferential tariffs for renewable energy procurement by the respective SERCs in their restructured power sector. The E’ Act 2003 has assigned the responsibility of promoting Renewable Energy (RE) sources to various State Electricity regulatory commissions (SERCs) in their respective states. and solar technologies ). The future economic development trajectory is likely to result in rapid and accelerated growth in energy demand and the growing energy consumption from conventional sources of energy is likely to leads increasing emissions of gases. small hydro.000 MW. The National Tariff Policy [10] that was notified by the Ministry of Power in January 2006. which are imported. Managing environmental and its social impacts have been drawing considerable attention in policy-making. As per Ministry of New and renewable energy source (MNRES) India has huge potential 84777 MW of electricity generation through renewable. structure of Indian power sector.with about three-fifths of the country’s power generation capacity being dependent on vast indigenous reserves of coal. compounding the pollution problems and increasing Green House Gas (GHG) emissions [7]. project development.The contribution of renewable to the overall power scenario is expected to increase substantially in to new phase of competitive electricity market. which is about 10% of new power generation capacity additions. As per the Act. There is increasing environmental concern about the contribution of coal-fired power generation to air emissions.000 MW. Major programs in India for power generation from renewable include wind. Like in other developing countries. The organization of this paper follows the renewable status. solar. When considering RE power options. 15. India has the potential to generate 35 MW per square km using solar photovoltaic and solar thermal energy [6]. The contribution of renewable to the total installed capacity of electricity generation has been rising after private participation into generation and distribution due implementation of restricting of power sector. various issues related with RES in competitive electricity market and future prospectus along with the concluded remarks. The Draft Renewable Energy Policy. has set a goal of 10000 MW to be added the total power generation capacity through renewable. domestic as well as commercial applications. cogeneration and biomass-based power generation. These factors. wind. Natural gas based generation capacity. aggregating 12622. shorter construction periods. and energy from wastes. heating. 25. and nitrogen oxides (NOx).000 MW and biomass/bioenergy. The MNES (Ministry of New and Renewable Energy Sources). With continued growth in the industry the gap between demand and generation is growing every year. SERCs are required to encourage investment in RE by providing suitable measures for connectivity with the grid and specify a percentage of the total consumption of electricity in the area of a distribution license to be procured from RE sources. Indian coal based generation also coupled with low conversion efficiencies. The growth rate of demand for power in India is higher than that of gross domestic product (GDP) [8]. It is envisaged that the electricity requirements in India would increase rapidly in the next couple of decades. In addition.000 MW from commercially exploitable sources: Wind.18 MW installed capacity as on Jan2009 as shown in table-1. there is also a wide gap between demand and supply in India [11]. The 33 percent of coal based plants generates large amounts of ash with other environmental harmful emittion of gases such as carbon dioxide (CO2). The country has an estimated renewable energy potential of around 85. has undertaken measures to facilitate the growth of both grid and off-grid RE power through specific programs. cooking. that has grown very rapidly in the last decade due to lower capital requirements. prepared by the ministry of new and renewable energy sources (MNRES). suggest that the development of renewable energy (RE) will go a long way in meeting the challenge of providing clean power in India. and higher efficiencies has a onetwelfth share in the overall capacity. Nuclear capacity remains restricted at about 3 percent of the total [4]. along with the country's large endowment of renewable resources. water pumping for industrial. II. The assessment of technical potential for renewable energy in India is shown in table 1 and fig2.

have significant environmental. deforestation. which reduces dependence on fossil fuels. The oil embargo of 1970’s was a catalyst for the adoption and promotion of renewable energy and policies . Hence renewable power will be the best option for rural electrification as per rural electrification goal of India TABLE -I ESTIMATED POTENTIAL AND CUMULATIVE ACHIEVEMENTS OF RES IN INDIA AS ON JAN 2009 SOURCES/ SYSTEMS ESTIMATED SR. • Rehabilitation and resettlement of project affected families.89 MW 346. Cumulative achievement of power from RES in India III. does not need to be imported. The development of renewable energy.00 MW 11 AERO-GENERATOR/ HYBRID SYSTEMS SUB TOTAL (B) TOTAL ( A + B ) TOTAL ( A + B ) 0.85 Solar Power Distributed Renewable Power 683.195 MW 15. solar. wind.58 MW Fig.3 16.18 MW 14224. especially those involving large dams. geothermal. GRID-INTERACTIVE RENEWABLE POWER 1 2 3 4 5 6 BIO POWER (AGRO RESIDUES) WIND POWER SMALL HYDRO POWER (UP TO 25 MW) COGENERATIONBAGASSE 346. and generally produces fewer and less toxic pollutants than fossil fuels. etc.12 MW 13878.91 1033. which has a high population living in rural areas.12 58.67 MW 1033. transportation dependency. social and economical impacts.91 MW 2. Presently. 3 .73 MW 58. competition in the electric power industry will encourage utilities to become more efficient and reduce costs in order to lower electricity prices.18 2. The use of renewable energy in its various forms is closely tied to the rise of civilization in the past also.67 Achievment as 31 Jan 2009 Bio power (agro Residue) Wind Power Small Hydro Power (up to 25 MW) Cogeneration-baggase Waste to Energy 9755.ENERGY SOLAR PV POWER PLANTS & STREET LIGHTS - 150.85 MW 2344.1. increase in silt flow in to the streams and rivers etc. especially for India. such as landfill gas.92 MW 160. Hydroelectric projects.31 MW 31. then renewable technology is an important areas. in the Indian power sector major share in electricity generation is thermal generation and the main fuel used is coal. • Large gestation period to complete the project also escalates the project cost [13]. But serious interest of the industrial world in renewable energy began only with the Arab oil embargo in the l970’s. DISTRIBUTED RENEWABLE POWER 7 8 9 10. handling of waste.06MW 3.2.000 MW 5. Concerns about the use of renewable energy sources in a competitive environment can be outlined in the form as. and other forms of biomass.73 2344. There will be a premium on short-term cost minimization in competitive electricity market. Fossil fuels are finite in nature moreover exploitation of these resources has adverse effects on the ecology due to mining. municipal solid waste (MSW). Estimate power potential from RES in India Energy sources include water.18 MW Fig. particulate matter emissions.700 MW - 683. and the ever-rising shortage of power have highlighted the need for tapping renewable sources as an alternate energy sources for power generation in India.18 MW 14224. and some combustible materials.881 MW 45. such as • Deforestation due to increased catchments area has considerable effect on seasonal water flow. opposition to large hydro projects on grounds of displacement of land and population. BIOMASS POWER / COGENERATION (NON-BAGASSE) BIOMASS GASIFIER WASTE-TO.000 MW 2.both grid-connected and distributed power generation. NEED OF RENEWABLE ENERGY SOURCES IN RESTRUCTURED POWER SECTOR WASTE TO ENERGY SOLAR POWER SUB TOTAL B.The advent of competition in electricity markets necessitates a re-evaluation of renewable energy technology and policies. NO.30 MW 9755. Hence the growing concern over environmental degradation caused by fossil fuel based systems. CUMULATIVE POTENTIAL ACHIEVEMENTS A.

(million Generation (Rs. the lower the cost per unit of output. Some technologies are already mature and economically competitive (e.25–1. For the mature technologies. The mechanism acts to create a market for electricity.IV. the rate of return required by the generator. The first step in calculating the base costs of renewable is to calculate costs of generation at each type of plant. This is particularly important for wind and marine generators.The ‘EA 2003’ also has made the state electricity regulatory commissions (SERCs) crucial players in the context of state level policies for renewable energy. A quota mechanism. an increase in production capacities to mass production levels. wind. allowing competition amongst renewable generators to meet the needs of that market. Solar PV 250–300 10. This can be helped by improvements to subcomponents. such as onshore wind generation. diverse array of technologies.00 generation Biomass 5. prepare the National Electricity Policy and tariff policy from time to time. it is mandatory for distribution licensee that a fix percentage in supply should be delivered from renewable in a particular state or area. REGULATORY AND POLICY FRAMWORK IN PROMOTION OF RENEWABLES IN INDIA The expected load factor and plant life will affect the capital cost per unit of output. nil excise duty on manufacture of most of the finished products for utilization and low import tariffs for capital equipment. As per the guidelines of the MNRES. small hydropower). taxes and installation charges. The E Act-2003 allow sale of electricity from renewable generation to any persons. According to Section 3 (1) of the Electricity Act 2003. in consultation with the State Governments [9].75 3. the central government shall. Construction costs can vary for many reasons.75–2. Achieving further cost reductions as indicated in the table below requires further technology development./MW) 1. This percentage determined by SERCs in various states.00–12. the prices can be drastically reduced and it will came equal to fossil fuel rate [14]. a 5-year tax holiday is also provided for power generation projects using renewable energy sources.00 The higher the load factor. the state utilities encouraged renewable energy by offering remunerative price for power purchase and also providing facilities for banking. The underlying theory is that competition in this market place will drive down the costs of supplying 4 . with few costs apart from capital costs. The table-II shows an overview of costs of various renewable energy technologies.00 2. Risks include engineering performance and changes in the regulatory environment. and the current status of these can vary considerably. it is mandatory for the SERCs to “promote co–generation and generation of electricity through renewable sources of energy by providing suitable measures for connectivity with the grid. the performance risks are relatively low but are significant for newer technologies.g. These include 80% accelerated depreciation (which was 100% earlier) for tax purposes in the 1st year of the installation of the project. For wind farms they vary from site to site Financing costs vary depending on the perceived risk of the investment. turbines etc. Under the Section 86(1) of the Act.00–2. It also specifies the purchase of electricity from renewable generation. thus reflecting the true cost of energy production by fossil fuels which then could be used to lower the cost/kWh of these renewable energies The production cost of renewable source is further reduced by subsidies. For some years. known as a Renewable Portfolio Standard (RPS) in India. V. 25–30 1. The higher the assumed rate of return required by the generator. Hence such type RE policy and the corresponding regulatory environment provide a framework for new projects and technologies establishment for renewable generation in near future in India. Small hydro 30–60 1. Companies which fail to meet the obligation are required to pay a penalty price for every unit of electricity by which they fall short of their obligation. TABLE-II THE CAPITAL COST AND COST OF ENERGY GENERATION FOR VARIOUS RES Cost of Capital cost Source of generation Sl. The growth of investment in development of renewable energy sources in India has been supported through a host of fiscal and financial incentives and other promotional policies. and of the establishment of an emissions trading scheme and/or carbon tax which would attribute a cost to each unit of carbon emitted.50 gasification 6. This effect will be particularly important for generators with high capital costs./KWh) Rs. sees a government place an obligation on either an electricity supply company or on consumers (albeit usually manifested through their supply company) to source a specified fraction of their electricity from renewable energy sources. the World Bank has been sold Electricity in developing countries at an average only 40% of the cost of its production. such as nuclear stations and many renewable generators. Some of the important provisions for renewable in this act include various incentives to the producers of renewable energy. GENERATION AND INSTALATION COST OF RENEWABLE Renewable energy systems encompass a broad.00–2. market deployment. 25–30 1. Apart from this. the greater the cost per year per MW of capacity.75–2. such as electric generators. Biomass power 30–40 1. The Electricity Act 2003 is having a significant impact on the renewable power because it recognized the role of renewable energy technologies in the National Electricity Policy and in stand-alone systems. No. others need additional development to become competitive without subsidies. The government by introducing subsidies in the form of relaxing duties.00 Bagasse co4. Wind energy 35–40 2. According to renewable portfolio standard (RPS) policy. The cost of generation depends critically on the assumed capital cost of a power plant. the cost of fuel (except for some renewable generators) and the amount of output that the plant is expected to generate (its load factor).

Andhra Pradesh and Rajasthan are planning to provide a better risk return ratio to attract more investments in renewable technology of generation.. States are now gearing up for a significant amount of renewable energy contribution in their grid power as the governments planning to make it mandatory for states to use a certain quantum of renewable energy under renewable portfolio obligation (RPO). may benefit from open access and transport electricity to a more favorable competitive market than a "host" utility. several states electricity regulatory commissions are revising their tariffs for feeding green (renewable) energy into the grid. With access to the transmission system being opened. In States where "retail" competition is permitted. [7] transmission facilities and the transmission operator assume a much more important role compared to their role under a regulated monopoly environment.e.37 a unit. The establishment of independent system operators (ISO) and transmission protocols should encourage the entry of new buyers and sellers increasing bulk power (wholesale) transactions. more than 15 out of 28 states have set quotas for sourcing renewable energy for their grids [18]. Madhya Pradesh. is typically a small fraction of the embedded cost is included in transmission tariffs. renewable generating technologies will face stiff price competition from other generating technologies.renewable electricity and thus minimize the costs to the consumer of meeting renewable energy targets. and operated by nonutility generators (NUG). selling their power to the utility in whose service territory they were located. The structure of the transmission tariff can impact the prices of transmission for different generation technologies and energy sources. States with no renewable energy sources would then have to buy renewable energy certificates from the ones that have surplus. For instance. including losses. the capacity utilization factor varies depending on the availability of the renewable energy source. Madhya Pradesh has also recently increased its wind power tariff from Rs 3. transmission pricing has not been a concern for renewable generating facilities. Tamil Nadu which presently purchases wind power at Rs 2. which needs special tariff policies in existed power sector for their overall promotion and sustainable development. renewable energy generating facilities can use the transmission system to sell power to any utility.50 a unit from Rs 3. financed. including new categories of players such as "green power" marketers and power brokers. The marginal cost of transmission for completing any given power transfer. Hence. provided transmission access is available and at a competitive price. are in their early stage of development. capacity reserves) and any congestion cost. interest rates for the debt and capacity utilization. Renewable NUG power plants generally have operated under FERC's "qualifying facility" (QF) status. Gujarat announced an increase in its wind power tariffs to Rs 3. States such as Tamil Nadu. TRANSMISSION ISSUES FOR ELECTRICITY GENERATION FROM RENEWABLE RESOURCES renewables in a restructured electricity market are of current interest. There are greater opportunities for expanded wholesale trade with lower cost generation replacing higher cost generation in expanded geographical regions and transmission systems when capacity and systems operation constraints permit. ISSUES OF TRANSMISSION TARIFFS FOR RENEWABLE ENERGY TECHNOLOGY IN COMPETITIVE ELECTRICITY MARKET The issues of tariffs for transmission access and services are coming when the power industries changes from regulated to competitive environment. The transmission tariff also sets prices well above the marginal cost to recover the fixed cost of the transmission system. customers who want renewable-based power (such as in "green power" programs) [10] will be able to purchase it directly from a renewable power supplier [15]. which could affect the economics of these technologies. Gujarat.03 a unit. thereby potentially affecting competition among generation suppliers. This will increase competition and exert a downward pressure on electricity prices. However. which will include the renewable energy technology now [17].97 a unit to Rs 4. The methodology used to recover fixed costs (in excess of marginal cost) can impact the price of electricity. At present. placing higher cost renewables at a disadvantage [16]. Thus. Transmission pricing is likely to have mixed effects on the total cost of renewable-based electricity transmission charges. Historically. The transmission tariff is so designed to recover both the marginal and fixed costs of the transmission system.90 a unit is planning a hike as high as Rs3. Some of this competition may be ameliorated. transmission issues for 5 . The other side of open access transmission is that there will likely be a greater number of buyers and sellers. if Federal and/or State restructuring legislation includes renewable portfolio standards (RPS) will be discuss in later section of this paper or other renewable provisions to support renewable energy such as system benefit charges. in January. States decide the tariff based on several factors such as project cost. States like Gujarat and Rajasthan have recently announced a hike in their power purchase rates. Many electric generating facilities using renewables are "qualifying facilities" (QFs) under the Public Utility Regulatory Policies Act (PURPA). as most of renewable generation (excluding hydroelectric) throughout the world has been developed. ancillary services (i. Utilities purchased this power under long-term contracts at a specified rate that included all transmission services (bundled rates). Under open access. owned. however. electricity may also be sold to any retail customer.40 a unit. VII. Renewable generating facilities however. Thus. VI. The structure of the transmission tariff will determine the allocation of transmission costs to the users of the transmission system. Although electricity from renewable energy will have access to more markets. PURPA guarantees that these qualifying facilities can sell their electricity to the host (local) utility. In this environment as most of the renewable technologies. and ultimately. to the respective consumers. for a variety of reasons.

and GHG mitigation. bio-mass. It is expected that renewable energy to contribute 10% of total power generation capacity by 2012.2008 has determined the tariff (inclusive of incentives as notified by MNRE) for Solar PV generation as Rs. 13.. Indian efforts for promoting renewable energy are in harmony with global concerns in direction of working towards lowering the relative price of renewable power technologies through a continuous research and development along with other promotional effort. deregulation) and scaling up of their projects [20]. D.. Shukla. Power Syst. “Wheeling of power under deregulated environment of power system—a bibliographical survey”. climate change. 1961) which are not eligible for aforesaid incentive declared by MNRE . Hence. India’s Ministry of New and Renewable Energy has recently issued a draft on renewable energy policy that identifies the strategies for increased deployment of gridconnected renewable energy technologies.P. This has provided a viable and investorfriendly business model.O. resulting in higher utilization of available government funds and faster market growth. which are of capacity ranging from 1. This has been the case of wind energy in India. “ Power sector reform in India : current issues and prospectus” Energy Policy 34(2006) PP. Sood.e.0 MW to 5. the Indian renewable energy program will be goal-oriented effort to meet the country's energy requirement in an environmentally sound way. shall be sold to the connected licensees at a tariff not exceeding the highest capped price allowed by the Commission for that year for the purchase of energy by the licensee from among the various categories of renewable sources. This rate has been fixed by taking the tariff rate as fixed by the Commission for biomass generators and bagasse based generation. shall be Rs. 7. promotion policies in renewable energy It may be concluded that renewable energy development is of great importance from the point of view of long term energy supply security.R. which provides guidance on air pollution reduction.12.07. R. According to the 11th five-year plan proposed by the government of India. However. 2012. Gupta.78 per kWh for Solar thermal Power generation and The Tamil Nadu electricity regulatory commission vide its order dated 11. 15.2009 but before 31.” 6 .04. FUTURE PROSPECTUS FOR RES IN INDIA business. India’s energy sector has undergone a significant renaissance over the last decade. The policies and special incentives provided by government of India to promote RES will definitely aroused the hope for exponential growth of renewable in near future.15 per kWh as purchase rate for procurement of power by distribution licensee from Solar PV and Solar Thermal generation. Ghosh.03. 17 (3) (2002) pp.04. PROMOTIONAL TARIFF FOR SOLAR POWER IN VARIOUS STATE OF INDIA The Punjab ERC vide its order dated 13. XI. “Developing Countries and Global Climate Change: Electric Power Options in India. waiting for funding to begin commercialization (i. operations and repair contracts are common in the wind energy business. environmental benefits and sustainability in power sector. 10. waste-to-energy and small hydro markets are at the venture of capitalist stage. promotion of clean technologies. New policies include the National Environment Policy.VIII.2007 has specified tariff for solar energy at a rate of Rs. Integrated installation. 870–878. if the project qualifies for generation base incentive the utility shall pay the net rate after deducting the incentive from MNRE [19]. 15.96 per kW for power projects commissioned up to 31. Jha “ Introduction of renewable energy certificates in the Indian scenario” Renewable sustainable Energy review(2008).00 / kWh. shall be Rs. The West Bengal ERC in its regulations has notified that solar energy generated by grid connected solar PV power projects. 11.00 per kWh (Base Year 2006-07) with five annual escalations at 5% up to year 201112. IEEE Transact.2480-2490 M Goyal.2008 has fixed a provisional tariff of Rs. Chandler.12. N.00 / kWh for sale to the distribution licensee and such tariff will be applicable for the projects commissioned up to 2009-10 and shall remain valid for ten years whereas those projects which are not eligible for aforesaid incentive declared by MNRE and are commissioned after 2009-10 but before 31st March. [1] [2] [3] [4] REFERENCES Y. R. Padhy.2009 and Rs. In this context.0 MW and are set up in the licensed area of supply of a licensee. H. similarly The Rajasthan ERC vide its order dated 02. P. and suitability of various new renewable projects is likely to be improve. In the present Indian power sector with maturing technologies. and the measurement of efficiency per unit of economic output. The capped price for energy of grid connected solar PV plants (including those plants which are availing accelerated depreciation benefit under section 32 of the Income Tax Act. 3. as a number of new policies have created not only the institutions to promote clean technology development but also the momentum and government support needed to see projects through to completion. This implies that growth in renewable energy will be occurring at a much faster pace than traditional power generation from 2008-2012 in India.. and Logan J. IX. The Haryana ERC vide its order dated 25. decentralization of energy supply particularly for the benefit of the rural population. Anoop Singh. CONCLUSION The Indian government has also set specific targets for renewable energy achievements by 2012. X.16 per kWh for power projects commissioned after 31. Technologies in the wind. W. 15.78 per kWh and Rs.2008 has fixed tariff for Solar PV generation at Rs. from 2008-2012 the renewable energy market in India will reach an estimated US $19 billion which is positive indication for RES promotion in India [6]. Recently announced solar incentive programs have spurred new interest and excitement about the widespread development of utility scale concentrating solar power (CSP) plants.12. The tariff announced is without taking into consideration incentive as notified by MNRE.2009.

739– 755 [14] National geographic magazine.Tech in Electrical Engineering (Power System) from NIT. [9] The Electricity Act. "Open Access Transmission and Renewable Energy Technologies.doe. Presently he has been working as Professor in the Electrical Engineering Department of National Institute of Technology. International Biographical Centre (IBC).nic. Carvalho. Golden." NREL/SP-460-21427. He received his B. http://www.department of Power Prize” for publication of one of his research paper in the journal of the Institution of Engineers (India). October 2006 [19] Various state electricity Regulatory commission website. degree in Electrical Engineering with “Honours” and M.1996 [16] Rahman.Tech in Electrical Engineering from Kurukshetra University Kurukshetra and M.nic. 7 . Hamirpur (H.eia. http://tonto. http://www. [18] “Government commitment to renewable energy”. Yog Raj Sood obtained his B.in. “Multi-criteria assessment of new and renewable energy power plants”. He joined Regional Engineering College Kurukshetra in 1986. Subhes.doe. His interest researches are Deregulation of power sector. Presently he is pursuing his Ph.windpowerindia.“Transmission Pricing Issues for Electricity Generation from Renewable Resources”.nic. pp. http://www. Congestion management. Volume 1.[5] [6] [7] Prepared for the Pew Centre on Global Climate Change. Afgan and Maria G. http://www.) India since January 2005. 2. [8] Power Ministry India. Srivastava.P. Chandigarh in 1980. Roorkee in 2003. Ministry of New and Renewable Energy source Website.gov. Recently. PP25-29 [13] Naim H. Arlington.). He obtained his B. Issue 1.gov [12] A. pp. Energy 27 (2002).E.: “Green power: What is it and where can we find it?” IEEE Power and Energy Magazine.powermin. Cambridge. US. Hamirpur. 1999.com. Shahidehpour “ Restructuring choices for the Indian Power sector” IEEE Power Engineering Review.1 and 86. Energy Information Administration/ Renewable Energy Annual 1998 Issues and Trends. from Indian Institute of Technology.mnes. August 2005. Sept. M. Power Sector Reports India. Jan-Feb 2003 Page(s):30 – 37 [17] Larry Prete. Energy 19 (1999).D in Electrical Engineering Department at NIT. 2003.U.in C. XII. A report on overview of Renewable potential of India. [15] Kevin Porter.cea. He has obtained his Ph. “An overview of problems and prospects for the Indian power sector”. Kurukshetra Haryana (India) in 2002 and 2005 respectively. Section 3. 795–803. He has published a number of research papers. S.eia.Sc degree from P.E. in Power System from Punjab Engineering College Chandigarh (U. He has been honored with many awards including “The Union Ministry of Energy. India. honored with “Decree of excellence in Education” by The Director General. in 1984 and 1987 respectively.T.1 [10] National electricity policy 2006 India [11] Challenges of Electric Power Industry Restructuring for Fuel Suppliers September 1998. November 2002. [20] http://www.. Renewable energy Sources.in. BIOGRAPHIES Randhir Singh was born in Yamuna Nagar (Haryana). Bhattacharyya.D.

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