Tuesday, December 23, 2014: The ministry of new and renewable energy (MNRE) has announced that they are working on an energy legislation to expand power generation capacity by a judicious mix of conventional and non-conventional power sources. They also said that the ministry is in process of preparing a scale up plan to develop solar power generation within next five years.
The announcement initiated the second phase of reforms in the power sector, while tabling the amendments to the Electricity Act 2003 in the Lok Sabha. The statement noted that the aim of the government will be to substantially increase the electricity generation in India with a judicious mix of conventional and non-conventional sources. The government will also extend the national solar mission, while connecting the households and industries with gas-grids.
Through the amendments made to the Electricity Bill, 2014 the government has proposed to impose stricter penalties for failing to meet the targets of renewable purchase obligation (RPO). Under this, it mandatory for the power distribution companies to purchase the electricity generated via renewable energy sources during the year. There are also certain renewable generation obligations (RGO), under which it is mandatory for the thermal power producers to generate electricity through renewable.
While highlighting the government’s step in six months to boost the clean energy production in the country, ministry noted that they’ll provide Rs 10,000 million sum to the public sector units for setting up over 1000MW grid-connected solar PV projects, and also the decision to set up 25 solar parks of 500MW capacity each and 300MW of solar projects through defence and paramilitary establishments. The ministry had also mentioned about the Global Renewable Energy Investment Promotion meet (RE-INVEST), to be held from 15 February to 17 February’2015, with the industry association, on the lines of PM’s Make in India initiative.