INTRODUCTION

an act to promote development and utilization of renewable and sustainable sources of energy, stabilize emissions of greenhouse gases, diversify energy supplies, safeguard energy security, ensure that energy development is ecologically sustainable, protect environment and to realize the goal of sustainable development.

SALIENT FEATURES

•      Enactment supplementing other legislation in the area;
   

•      Thrust for development of the sector;
   

•      Emphasis to mainstream developmental and promotional measures (for renewable energy)
   

•      Policy goal is to achieve sustainable development

LEGISLATIVE SCHEME

           1.       Preliminary

           2.       National Renewable Energy Council and its Role

           3.       Grid Connected Renewables

           4.       Rural Energy & Renewable Microsystems

           5.       Biofuels and Transportation Energy

           6.       Hydrogen and Fuel Cells

           7.       Renewable Obligations & Certificates

           8.       Other Promotional Measures & Instruments

           9.       Penalties
10.       Miscellaneous

 1.     Preliminary

Comprehensive definitions include: 

•      Aero-generators

•      Electricity from Renewable Sources

•      Fuel Cells

•      Greenhouse Gases

•      Hybrid Vehicles

•      Micro-generation

•      Renewable Energy

•      Renewable Fuel, etc.

 2.     National Renewable Energy Council (NREC)

•      Mandate for constitution (within six months)

•      Constitution

-   Minister in-charge (Chairperson)

-   Secretary, in-charge (Member Secretary)

-   Other 19 official and non-official members (representing the stakeholder communities)

-   Cap on official members to 1/3rd.

•      Mandatory meetings in a year (four)

•      Council to make rules relating to its conduct

Role of the Council   

•      16 – well-defined functions

•      Development of Renewable Energy Policy and Execution Plan

•      Development of indicative standards

•      Supporting research and development

•      Development of fiscal, financial, regulatory and institutional mechanisms

•      Policy to initiate public–private partnership

•      Education and other policy initiatives

 3.     Grid Connected Renewables

A. Resources

•     Reassessment of grid connected renewable potential to bring out the real potential of renewables and aim at 50 percent of all electricity generation in the country from renewables by 2050.
   

•    Creation of interactive web-based resource maps of different renewable technologies to facilitate speedy project development and market expansion
   

•      Facilitating quick technology transfer and adoption of renewable energy.

B.  Policy

•      Fixation of target

    -    2010 – 10% and by 2020 – 20%

•      Preferential access (to grid) to renewable sources
   

•      State commission to fix tariff (sec. 62, of Electricity Act, 2003) but shall be guided by terms specified by the Act
   

•      Grievance redressal – State Commissions

 4.     Decentralized Renewable Microsystems

•      Time-bound stipulation (six months) to the Ministry to prepare policy, with guidelines
   

•      Stipulation to the Ministry to initiate programmes

-         Various research & development programmes

-         Realize the potential of solar power generation

-         And such other programmes.

•      Use of photovoltaic energy in public buildings
   

•      Time bound mandate (six months) to the ministry to initiate solar water heating in all buildings (with defined floor area)
   

•      Time bound mandate (12 months) promotion of biomass energy systems in the nation

 5.     Biofuels and Transportation Energy

•      Mandate on Central Government (6 months) to prepare Integrated Renewable Fuel Policy
   

•      Mandate to bring-in regulations to ensure gasoline and diesel to have certain percentage from renewables
   

•      Development of ‘Hybrid Vehicles’ – by way of MoUs with automobile manufacturers

 6.     Hydrogen and Fuel Cells

•      Additional, enabling ‘purpose’ clause
   

•      Obligation upon the Ministry to (6 months) to prepare plan related to development of a coordinated plan
   

•      Mandatory commitment to the Ministry to enhance the hydrogen energy infrastructure by 2015
   

•      Establishment of technology mission under this section (within 120 days)

 7.     Renewable Obligations

•      Renewable electricity purchase obligation – mandating electricity utilities to compulsorily purchase electricity from renewable sources
   

•      Renewable transport fuel obligation

 8.     Promotional Measures

•      Central government to reserve land
   

•      Technology missions

-         To begin with  in Biofuels and Hydrogen immediately

-         Such other missions in other sources

•      Renewable Energy Fund (at central and state levels) – by imposition of cess
   

•      Introduction of Market-based Instruments.

      9.     Penalities

•      Penal clause in the Electricity Act, 2003, applicable
   

•      Provision for a hearing prior to penalty
   

•      Appeal to Appellate Tribunal
   

•      Civil Court not to have jurisdiction

  10.     Miscellaneous

•      Sustainable Energy report to be published by the Central Government every year
   

•      Central Govt. empowered to issue directions
   

•      Power of the Central and State Govts to make rules
   

•      Application of other laws not barred

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