Harnessing renewable energy to meet Indias energy needs

Group Project EGMP XVI

Contributors Anand Lokhande Dattari Radhakrishna Sathish G C Somashekar M N Vishwavasu Chobari

Executive Summary It is imperative that the contribution of new and renewable energy sources of power is enhanced if we have to successfully combat the phenomena of global warming and climate change. Shri Pranab Mukherjee, Union Finance Minister, Government of India (while delivering the Union Budget 201011 to the Parliament) It is without doubt that renewable energy sources are being tapped world over in order to make way for a cleaner and greener environment. This paper tries to illustrate and re-emphasise the need for the Indian government to address the basic issues on the renewable energy generation and distribution and as well look at the reduction in inefficiencies of the current power generation and distribution techniques. The Ministry for New and Renewable energy is taking the steps in the right direction however a stronger push is required to address the challenges to the regulators, distributors, manufacturers in terms of innovation, moving to new areas and technologies, institution building, resource assessment, tax and revenue models, trading of green power through renewable energy certificates etc. Power generation as per the Economic Survey 2008-9 went up by 6.0% and has been targeted for 9.1 % in 2009-10. Renewable energy resources contribute about 3.5% of the total electricity generated in the country.Green scientist R.K.Pachauri writes in the TerraGreen Feb 2010 issue In order to achieve higher level of energy security , India would have no choice but to expand coal production and transportation to its limit. At the same time, major initiatives will have to be taken urgently to harness energy from renewable sources.

Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). In 2006, about 18% of global final energy consumption came from renewables, with 13% coming from traditional biomass, which is mainly used for heating, and 3% from hydroelectricity. In conclusion, the paper illustrates the important challenges faced by the government currently starting with the issues highlighted and the various ways in which these issues can be handled. Energy generation is costly and in order to optimize our investments in these areas, a well planned approach is necessary. The setting up of ministry for renewable energy resources is the right step in this direction.

Current problems and challenges Power is the backbone of modern global society. It is a crucial ingredient for economic growth and improving the standard of life. Electricity consumption is practically synonymous with modern life in the industrialized world. The Indian Govt. has recognized our growing power needs and has allowed private enterprise sector, a larger role in the power sector. However it is a matter of grave concern to us that the annual per capita consumption of electricity in India is estimated about 420kWh, which is amongst the lowest in the world. Further people in large number of villages have no access to electricity. Our woes are compounded by the fact that the end users of electricity are frequently faced with power cuts, erratic voltage supply. These problems arise from Inadequate power generation capacity Lack of optimum utilization of the existing generation capacity Large scale theft Slow pace of rural electrification Lack of grid discipline Also, since the state boards, have the greater share of generation and transmission assets, they would have take up a greater role in addressing few of these problems/challenges. Renewable energy constitutes a total of 8.5% of the total installed capacity. This needs to be increased, if we would like to supply energy to this energy starved country. Current power requirements India is the 6th largest energy consumer in the world presently, accounting to 3.4% of the global electricity consumption. 75% of the energy consumed in India is generated by Thermal plants, while 21% by hydro energy and 4% by nuclear plants. The installed power capacity, in India as on May 31, 2009 stands at 149390MW. Taking the previous statistics into account, considering that Indias power generation is 149k MW, the AT&C losses stand at a whopping 44000 MW! Indias power generation did go up by 3500 MW in fiscal 2009, but is 68% less than the target taken, which was: 11061 MW Indias power forecast - Indias power needs are growing rapidly and is envisaged to be 950000MW by 2030, with a target of 8% growth annually. The following graph depicts the energy needs till 2021
India's projected energy consumption
1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 20092010 2010-11 2011-12 2016-17 2021-22 Year

K M W

The Union Finance ministers decision to double funds for power allocation from the existing Rs.2232 cr to Rs.5132 cr has infused a sense of optimism in the sector.

Summary of the 10 point agenda Role of Industry/Associations In his exploration Civic, civil or servile? Robin Guthrie (1994) defines Civil Society as "It is what citizens do together in their own right at the bidding of no higher authority, for the common good, and apart, generally speaking, from direct party political affiliation or alignment. The civil society is not concerned primarily with power, although it may be ranged against the excessive concentration or abuse of power in any quarter." There is a need for creating a deeply rooted network of organizations and institutions that mediate between the citizen and the State. This forms the connective tissue of a democratic culture and is very much needed to ensure we are on the right track and make the correct investment for our energy needs. Bio Wind Solar Energy The three forms of energy will remain until the earths atmosphere allows them to be. They are practically free, although there are challenges to harness them, both technologically as well as financially. Proposal for Tax and Revenue Model The government must seek expert guidance on the taxability and revenue generation capacity of the industry producing and using the renewable energy resources thereby ensuring greater compliance and even greater environmental good. Energynomics needs to be practiced by the government both internally when dealing with the state governments and also externally when dealing with the North-South countries. Enhancing awareness and thereby building consensus The awareness on environment has already shown multiplicity of results inthe form different issues of livelihood rights, of displacement &rehabilitation, of sustainability, of pollution led damages and control etc. The mere awareness also creates a genuine interest to probe into the exact matter. Focus on this area needs to be strengthened with renewed vigor in order to ensure the civil society comes to terms with the changes that are expected to arrive with the shift towards clean energy. It doesn't seem to matter whether we are talking about energy from fossil fuels or renewable sources; there is strong opposition to proposed generating facilities. A consensus building approach to energy facility citing for example, needs to focus on an extensive public dialogue, involving representatives of all relevant stakeholders. Reducing dependence on nuclear energy After his landmark speech on energy independence on the eve of India's 59th Independence Day, President Abdul Kalam emphasized upon the importance of alternative fuel development to surmount the growing challenges to energy security in his opening address at the Bio-Diesel Conference on June 9, 2006. His emphasis on energy independence places immense importance on India's energy security, as the country is increasingly dependent on imported fuels. Nuclear energy demands high level of imports and thereby depletion of valuable foreign currency. Regulation strategies - Regulation Strategies are aimed by protecting consumer interests and making the sector commercially viable, apart from promoting competition, efficiency and economy in bulk power markets, while promoting investments, be it Indian or foreign. The primary objective of a regulation strategy is to issue goals for energy generation, guidelines for interconnection with other grids, costing for power trading, guidelines for publication of bids, certification for renewable energy to various firm and so on.Considering the fact it would take sometime before nonconventional energy technologies to compete, the regulatory commission may determine an appropriate differential prices to promote these technologies.

Moving to a clean energy smart grid In recent years, we have all become familiar with power outage, which questions the reliability of the existing electricity grid. Blackouts are experienced in different regions, affecting residents, businesses, & daily life. Smart grids will be an important enabler to make the power system more environmentally sustainable, & represent an opportunity for developing countries like ours, to leapfrog in the growth of the power sector to more manageable, reliable, & scalable designs. Amore robust grid is also vitally important as a matter of national security. A national clean-energy smart grid will advance key priorities for our country, including the expansion of renewable electricity, enhanced energy efficiency, increased security & reliability for the electricity system, lower power line losses, economic benefits &cost savings for rate-payers, job creation for the workers, &opportunities for businesses. Latest technology adoption for renewable energy Public private partnership to develop mini power plants Reducing GHG emissions GHG emissions impose a tremendous impact on the environment & are responsible for Global warming, rising sea water level &submerging of low-lying areas. India is the 5th largest GHG emitter in the world accounting for 8% of total global emissions. Studies conducted by reputed institutes like Greenpeace & TERI, make the case that it is not only technically & economically feasible for India to make the shift to renewable energy sources (if this rollout is combined with energy-efficiency measures), but also prudent to begin this transition now. More importantly, once the high upfront investment costs have been circumnavigated, the shift to renewables would actually be cost positive. Restraining emissions from energy use in India will require that fuel allocation & energy efficiency be improved to their maximum potential. Advantages of renewable energy - Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). In 2006, about 18% of global final energy consumption came from renewables, with 13% coming from traditional biomass, which is mainly used for heating, and 3% from hydroelectricity. While most renewable energy projects and production is large-scale, renewable technologies are also suited to small off-grid applications, sometimes in rural and remote areas, where energy is often crucial in human development. Hence this is the best bet for a country like India. Role of Industry associations/NGO/civil societies Industry associations/NGO/civil societies have a big role to play in harnessing renewable energy to meet Indias energy needs. The involvement of diverse stakeholders and the subsequent pooling of strengths, capacities, approach, and skills help overcome barriers to sustainable development. Only a proactive civil society can help spread awareness and mobilize people towards public opinion, political participation and exerting pressure on representatives. We need to realise that a civil society includes not just Non Governmental Organisations and groups, but individuals as well you and me; people from various sectors: business, media, finance, academics; the young and the old. Basically, anyone who believes in creating a society that can sustain itself and move towards a better future. For example : The Renewable Energy and Energy Efficiency Partnership (REEEP) is a Vienna-based international organisation that was launched by the government of the United Kingdom along with other partners at the Johannesburg World Summit on Sustainable Development (WSSD) in August 2002. REEEP aims to accelerate the marketplace for renewable energy and energy efficiency with a particular emphasis on targeted projects in the emerging markets and developing countries.

NGOs like Small-Scale Sustainable Infrastructure Development Fund, Inc. (S3IDF) has implemented 35 low-investment renewable lighting projects for urban and rural communities, benefiting about 5,500 people. Increasing evolution of technology and materials is driving small-scale solutions to be much more cost effective in poor areas, explains Dr. Russell deLucia, founder and president of S3IDF.S3IDF uses a variety of mechanisms to mainstream clean energy. First, it identifies entrepreneurs and nongovernmental groups to provide a supply of appropriate, small-scale lighting solutions, from solar panels and lanterns to compact fluorescent bulbs and light-emitting diodes (LEDs) powered by solar, biogas, or grid-based uninterrupted power supply (UPS) systems. Second, the initiative arranges for partial equities on behalf of the poor to induce local banks to finance smallscale projects that would otherwise be considered non-bankable. Third, S3IDF builds business models that link clean lighting services to end-users, creating employment and reducing the need for intermediaries. Lastly, the initiative promotes sustainable financing to make clean energy services cost-effective for poor communities and comparable to their existing expenditure on lighting (such as kerosene). In June, the S3IDF Lighting Initiative received a World Clean Energy Award (WCEA) in the category of NGOs and Initiatives. Bio, wind, and solar energy Bioenergy is renewable energy made available from materials derived from biological sources. In its most narrow sense it is a synonym to biofuel, which is fuel derived from biological sources. In its broader sense it includes biomass, the biological material used as a biofuel, as well as the social, economic, scientific and technical fields associated with using biological sources for energy. This is a common misconception, as bioenergy is the energy extracted from the biomass, as the biomass is the fuel and the bioenergy is the energy contained in the fuel. Biomass is any organic material which has stored sunlight in the form of chemical energy. As a fuel it may include wood, wood waste, straw, manure, sugar cane, and many other byproducts from a variety of agricultural processes. Biomass is material derived from recently living organisms, which includes plants, animals and their byproducts. Manure, garden waste and crop residues are all sources of biomass. It is a renewable energy source based on the carbon cycle, unlike other natural resources such as petroleum, coal, and nuclear fuels. Wind energy - The Earth is unevenly heated by the sun, such that the poles receive less energy from the sun than the equator; along with this, dry land heats up (and cools down) more quickly than the seas do. The differential heating drives a global atmospheric convection system reaching from the Earth's surface to the stratosphere which acts as a virtual ceiling. Most of the energy stored in these wind movements can be found at high altitudes where continuous wind speeds of over 160 km/h (99 mph) occur. Eventually, the wind energy is converted through friction into diffuse heat throughout the Earth's surface and the atmosphere. The total amount of economically extractable power available from the wind is considerably more than present human power use from all sources. An estimated 72 terawatt (TW) of wind power on the Earth potentially can be commercially viable, compared to about 15 TW average global power consumption from all sources in 2005.

Solar energy refers primarily to the use of solar radiation for practical ends. Solar technologies are broadly characterized as either passive or active depending on the way they capture, convert and distribute sunlight. Active solar techniques use photovoltaic panels, pumps, and fans to convert sunlight into useful outputs. Passive solar techniques include selecting materials with favorable thermal properties, designing spaces that naturally circulate air, and referencing the position of a building to the Sun. Active solar technologies increase the supply of energy and are considered supply side technologies, while passive solar technologies reduce the need for alternate resources and are generally considered demand side technologies. Thermal mass systems can store solar energy in the form of heat at domestically useful temperatures for daily or seasonal durations. Thermal storage systems generally use readily available materials with high specific heat capacities such as water, earth and stone. Well-designed systems can lower peak demand, shift time-of-use to off-peak hours and reduce overall heating and cooling requirements. Proposal for the tax and revenue model Rural model (Multiuser Single Source):A Village Energy Fund should be got created under the provisions of the Panchayati Raj Act, initially with nominal beneficiary contributions of Rs 200 per household for sustained operation and management of the project. Subsequent monthly / annual user charges would have to be deposited in this account. Grants from other Government programmes such as rural development, tribal development, etc., if available, should be placed in this account. A separate capital account should also be got created, for receipts towards supply and installation of the energy production units. Both the VEF and the Capital Account of the VEC (Village Energy Committee), being the accounts of the Gram Panchayat under the provisions of the law, would be subject to the processes of accounts maintenance and audit that apply to the Gram Panchayat. Expenditure of funds by the VEC should be disclosed to the Gram Panchayat at its monthly meeting as prescribed under the Panchayati Raj Act and Rules. VEC, being a Sub-Committee of a Standing Committee of the Gram Panchayat would also be under obligation to disclose information in accordance with the Right to Information legislation. It will also be authorized to submit the Utilisation Certificate to the Gram Panchayat, which in turn will submit the Utilisation Certificate to the agency concerned at the district level. Technical facilitation and capacity building through implementing Agencies or Consultants such as NGOs would be focused at the VEC level through the Gram Panchayat. Urban model (Single User):The government should reduce net tax by 5 percent per year on total investment for 6 years on any residential or commercial establishment utilizing the renewable energy source. The government should provide exemption from value-added tax and import duty for equipment and machinery used in renewable energy projects. An exemption on value-added tax on equipment used for renewable energy resources, including geothermal should be implemented. A tax credit should be provided to the tune of 100 per cent of expenditure incurred on cost and installation of energy saving technologies, in addition to the accelerated depreciation, which is provided currently. A tax deduction should be offered to individuals installing energy conservation technologies in their property and also to builders who invest in these technologies while constructing green buildings. Tax incentives should be given to individuals investing in companies that are engaged in generation of renewable energy or such other businesses resulting in water efficiency, carbon emission reduction. Tax holiday under Section 80IA of the Income-Tax Act could be extended to undertakings engaged in the manufacture of energyefficient products and manufacturers of equipment used in the generation of power from solar, wind, and other renewable resources.

Enhancing awareness and thereby building consensus: The awareness on environment has already shown multiplicity of results in the form different issues of livelihood rights, of displacement & rehabilitation, of sustainability, of pollution led damages & it's control etc. Focus on this area needs to be strengthened with renewed vigor in order to ensure the civil society comes to terms with the changes that are expected to arrive with the shift towards clean energy. For example: Rational use & maintenance of village land & water resources needs discipline. Villagers have to ensure that animals do not graze in their protected commons, the catch-ments of their local water bodies are conserved & properly used, & the common produce from these lands is equitably distributed within the village. The government cannot do this in each & every village of India. Environmental regeneration in every village of India is a task that the people must undertake themselves. The villagers can do all this & more, only if there is an effective village-level institution to energise & involve them in controlling & managing their environment, & to resolve any disputes that may arise amongst them. Unfortunately, there is no effective forum in Indian villages today for this purpose. All good cases of environmental regeneration undertaken by voluntary agencies are invariably those cases where voluntary agencies have set up an effective institution at the village level & then give moral, technical & financial support to it. But it is the creation of a village level institution which brings the people together, spurs them into action & ensures the protection & the development of the natural resource base. Civil society has the potential to act as a locomotive, both pressuring & supporting regulators in implementing Renewable Energy & Energy Efficiency (RE/EE) programs. There are promising policies & legal provisions to promote RE & EE in India, & the Central & State Electricity Regulatory Commissions have significant authority & discretion for implementation. While some regulatory commissions have been proactive about meeting this mandate, the rigor, ambition, & effectiveness of state regulators varies greatly. Even when regulators are proactive, utilities are often unresponsive. In some cases, inappropriate tariff incentives & project development practices have sparked public opposition to RE & EE. For ex, controversies over the siting, pricing, & real energy contributions of wind projects in India have raised serious concerns. The effective use of inclusive, transparent, & accountable, regulatory processes (as required in our National Electricity Act, 2003) could help overcome these hurdles. Informed civil society & stakeholder input can help regulators understand & manage tradeoffs associated with RE/EE. Civil society can pressure & support regulators to implement more ambitious programs. Such processes can help make sure that utilities respond to regulations that promote RE/EE. Proposed Guidelines for Policy Makers in India: Vigorous promotion of RE by government agencies, corporate, public sector, academic institutions etc.;Establishment of national-level body to increase awareness of renewable energy at grass-root level; Development of comprehensive educational & awareness modules for RE systems; Engage civil society & consumer groups, as well as the local & national media in India to build awareness of the opportunities to improve practice; Facilitate an exchange between electricity regulators in India & other major emerging economies like Brazil, South Africa, & Thailand to share experiences managing stakeholder interests to promote RE/EE

Reducing dependence on nuclear energy and increase dependence on renewable energy And it is worthy of note that the systems which the Europeans have discarded are the systems in vogue among us. Their learned men continually make changes. We ignorantly adhere to their cast-off systems. -- Mahatma Gandhi, Hind Swaraj Renewable energy is also much safer than nuclear energy which some people regard as clean. Accidents in nuclear plants can be catastrophic and there is the added problem of having to deal with nuclear waste. Using nuclear energy has little to do with reducing dependence on foreign oil. It would increase our dependence on foreign uranium, which has its own host of national security implications. A major 2006 report by the United Kingdom (UK) government's Sustainable Development Commission (SDC) concludes that doubling nuclear capacity in Great Britain would have only a small impact on reducing carbon emissions by 2035. In addition, the report identifies the following five major disadvantages to nuclear power: No safe long-term solution to the problem of radioactive waste from nuclear plants is available, let alone acceptable to the general public. The economic costs of nuclear power are uncertain but much higher than those of alternative sources of generating electricity. Nuclear energy requires and will lock the country into a centralised distribution system for many decades, and hinder the development of distributed energy-generation technologies that are rapidly emerging as important sources of electricity. The signal offered by nuclear programmes that what is needed to tackle climate change is just a major technological fix undermines energy efficiency imperatives. Various costs associated with the nuclear energy generation are lifelong in nature, primary among them being, the release of radioactive waste for tens of thousands of years into the atmosphere. Evidences collected of the health of the local population at Rawatbhata near Kota in Rajasthan are tabulated below :Table 1: Incidents of deformities, stillbirth and abortions Deformities Proximate villages Total population 50 Above 18 years 5 Below 18 years 45 Below 11 years 38 Below 2 years (live born) 16 Stillborn children and abortions in the two years prior to the survey With deformities 4 Without deformities 2 Abortions 27 Distant villages 14 4 10 6 3 0 0 5

Note: Proximate villages are those near the Rajasthan Atomic Power Station (RAPS) Source: Anumukti Volume 6, Number 5, April/May 1993

Our country needs to focus on the right mix of the energy basket and make sure it is not veering heavily towards any one specific energy line. The various debates and discussions on the GHG and the related negotiations are definitely one step in that direction. However, reduction in GHG does not mean that we increase other kinds of toxic waste which could be harmful for generations to come. Self sustaining sources of renewable energy and its practical application is the only way out to make sure to ensure that the future generations enjoy the fruits of our labour.

Even if the rich countries demand that developing countries take measures to accept binding cuts on emissions by cutting down on their fossil fuel consumption and employ renewable energy systems the developing countries like India should take the lead to let them know that these technologies are either inaccessible or too capital intensive for most poor countries to adopt without funding. Therefore alternate mechanisms need to be created under the ambit of the UN to make sure that the developing countries dont get into the nuclear waste rut as has happened with so many other technologies in the past. The Civilian Nuclear Liability Bill, has faced opposition in the Parliament on several counts, some of them being The liability is capped at USD 450 mio, but is this the real cost of a nuclear disaster ? US Companies are privately owned and in case of mishap who will bear the expense ? Will the US government intervene to help out the affected parties Insurance companies dont provide unlimited liability. The compensation over and above the capped amount will be the Indian governments responsibility and infact the Indian tax payers responsibility. The main focus can be on investing in renewable non-polluting energy sources not only from a 20 year plan perspective but beyond that. The generations to come will applaud the role and the vision of this government if the rights steps are taken now. The time is ripe since the time the nuclear deal was signed with the US, a lot of other countries are willing to do business with India. We can take a step further by talking to them about non-nuclear energy resources as well and stake a claim for their partnership. Former US President George W Bush said in his address at the Washington International Renewable Energy Conference 2008 And yet the United States -- we haven't built any nuclear power plants in a long time. We have a promising technology available and yet we're stuck -- until recently. All of our citizens probably don't understand, but France, our ally and friend, gets nearly 80 percent of its power from nuclear power. Isn't that an amazing statistic? It's time for America to change. My administration is working to eliminate the barriers to development of nuclear power plants. Last year we invested more than $300 million in nuclear energy technologies. We want our people to understand that this generation of nuclear power plants is safe. We want people to feel comfortable about the expansion of nuclear power. Regulation strategies Regulation Strategies are aimed by protecting consumer interests and making the sector commercially viable, apart from promoting competition, efficiency and economy in bulk power markets, while promoting investments, be it Indian or foreign. The Regulation committee could have representation of various renewable energy sectors. Regulation committee must issue: Goals for renewable energy generation Work closely with other government departments to ensure speedy work necessary for the transmission of renewable energy The criteria and methodology for fees and model contracts for energy production Guidelines for interconnection with the national grid, akin to the present guidelines for solar energy, under JNNSM(Jawaharlal Nehru National Solar Mission)

Guidelines on the publication of bids for renewable energy projects Guidelines to remove discrepancies that occur in power trading in between the energy surplus area/state to an power deficit area/state Certification for the renewable energy that could be bought by the deficit states, well in advance. A neutral board could be formed to certify the RE plant itself.

Note: Few of these regulations were made by Mexican Government in 2009 and JNSSM project grid interconnection guidelines are referred, while few of them are taken from the CERC Regulations 2010. Also, considering the fact that it would take some time before non conventional technologies compete, in terms of cost with conventional sources, the Regulatory commission may determine an appropriate differential prices to promote these technologies (as per the existing Electricity Act, 2003, India) The RE generation cost might not be the same at all the states, owing to various constraints. The regulation authority must take care to promote healthy competition. Moving to a Clean-Energy Smart Grid In recent years, we have all become familiar with power outages, which questions the reliability of the existing electricity grid. Blackouts are experienced in different regions, affecting residents, businesses, & daily life. In many parts of the country, the only way a utility even knows the power is out somewhere in their system, is if they receive a customer complaint. Smart grids will be an important enabler to make the power system more environmentally sustainable, & represent an opportunity for developing countries like ours, to leapfrog in the growth of the power sector to more manageable, reliable, & scalable designs. A more robust grid is also vitally important as a matter of national security. A national clean-energy smart grid will use long-distance, extra-high-voltage transmission lines to move remote clean-energy resources to power load centers. This expanded & upgraded interstate transmission grid will connect to a modernized distribution system enabled with digital technology that delivers energy & detailed, real-time information about the use of such energy to consumers. This will allow utility companies & consumers to constantly monitor & adjust their electricity use, while providing a pricing & control system to flexibly integrate new distributed energy resources such as solar & wind power, energy storage devices, & electric vehicles as the batteries in our plug-in cars become a repository for clean electricity. In other words, the grid will allow renewable energy to travel to homes around the country, & enable consumers to feed any excess power they produce back to the grid for other consumers to use. According to research from the Bangalore-based nonprofit Center for Study of Science, Technology & Policy (CSTEP), these are 5 reasons why a developing country like ours need, & want, smart grids: Stopping Power Theft (just basic grid accounting knowing where the power is flowing when will be a strong driver to cut down theft); Higher Quality/Reliability of Power, Fewer Blackouts (Grid load balancing & distribution automation services, help keep power flowing more continuously & alert utilities to blackouts); Leapfrog to Smart Grid (smart grid technology can represent an opportunity for developing countries to leapfrog in the growth of their power sector to more manageable, reliable, & scalable designs basically skip the older systems, & start with the newer IT-based ones); Growth Justifies the Cost (addition of many new customers can help with the ROI); Renewable Power Needs

Smart Grid (utilities will need a smart grid to manage problems caused by distributed power & intermittency sun & wind only happen during certain times of the day) A national clean-energy smart grid will advance key priorities for our country, including the expansion of renewable electricity, enhanced energy efficiency, increased security & reliability for the electricity system, lower power line losses, economic benefits & cost savings for rate-payers, job creation for the workers, & opportunities for businesses. It should be planned specifically to reach from areas with the highest potential for new renewable electricity generation to areas where that energy is most needed. The overall change that the utility grid needs to make is to go from a centralized generation & distribution model to one that is more distributed & diverse. That means that peaks in demand on the utility grid will be offset by distributed renewable sources. Ultimately for India to continue along the path of aggressive economic growth, it needs to build a modern, intelligent grid. Until that time, our vast renewable energy reserves will never do more than look good on paper. Without it, we cannot move clean electricity from where it's generated (often across the country), & cannot effectively tap into our vast renewable energy reserves. Latest Technology adoption for renewable energy Europe has developed latest technologies for efficiently harnessing the clean energies with reduced cost making more adaptable. Bio energy: Implement and boost The latest technology of producing the lingo cellulose bio fuels which is cost effective. Encourage the usage of plant ethanol for transportation. Creation of grids for captivating the biogas Solar energy: Moving towards developing thin film PV cells, Flexible PV cells, low cost organic cells, these have wide adoptability and also developed the efficacy measurement of the harnessed energy, also developed the longevity measurement of the PV cells enabling for refining the manufacturing process of PV modules. Not only the technology adoption in the field of PV cells but there are developments in Solar cooling stations for offices / buildings, efficient grid(smart grid) for integration and transmission of power as in the case of Canada, Wind energy: The major players have come out with the latest technology development in the wind mill generation equipment usage of more robust and light material to align the efficient production of RE. Public Private Partnership to develop mini power plants Encourage the industries, in addition to sugar industry, with cogeneration potential to set up co-gen plants expeditiously. Provision of "single window" service for technical consultation, sources of finance and project clearance.

The Single Window will review the issues relating to the statutory clearances of various departments. The clearances / approvals which are not accorded within the specified time period will be dealt by the Single Window empowered committee Government support on implementing the policies for issuance of Land needed for clean power generation at subsided rate / specified lease period. Support on taxation policy (entry tax, CST, ED, reduction of import duty etc) for new plant and machinery specifically for RE generation units. Extending loan facilities and tax holidays / Interest holidays for the borrowings upto the commissioning of RE plants encourages the private players to participate. Levying a nominal amount of cess from the usage of RE and recycling of the accumulated cess amount to extend SOPs / subsidies. Government to institute mechanism for training and creating awareness towards the RE and the government policies / taxation methods, facilities extended there by inducing more entrepreneurs to avail the above and there by more clean energy generation. To start with government to enforce that all the PSU should have their own RE plants / grids which will offset to some extent the usage of main stream energy. Create awareness for power saving as 1 unit of power saved is equal 2 units of power produced. Encourage community participation for RE production and utilization as in case of USA.

Reducing Green House Gases (GHG) Emissions GHG emissions impose a tremendous impact on the environment & are responsible for Global warming, rising sea water level & submerging of low-lying areas. Global warming is caused mostly by carbon dioxide (73%) & to a relatively lesser extent by methane (17%), nitrous oxide (9%) & fluorocarbons (1%). If human-induced climate change is to have any hope of being limited to 2 degrees, it is essential that ways are found to address rapidly rising GHG emissions in India, as elsewhere. Even though Indias per capita emissions are very low, our 1+ billion people are collectively a major source of GHG emissions. India is the 5th largest GHG emitter in the world accounting for 8% of total global emissions. India's emissions have increased by 65% in 2005; with respect to the base year 1990 .These emissions are projected to grow another 70% by 2020. India has now committed to slow the growth of emissions by reducing its levels of so-called carbon intensity roughly the amount of carbon dioxide emitted per unit of economic output by 20 to 25 percent by 2020, compared with 2005 levels. We believe India can do a lot more in combating the GHG paradox. Studies conducted by both Greenpeace & TERI, make the case that it is not only technically & economically feasible for India to make the shift to renewable energy sources (if this rollout is combined with energy-efficiency measures), but also prudent to begin this transition now. There are several reasons for this urgency. First, the reports note that India's power-generation infrastructure is undergoing rapid expansion to meet national development objectives, with the country still facing unmet power demands that equate to as much as 80 percent of current installed capacity. Second, they point to rising energy security concerns as energy prices go up & supplies shrink, making it a ripe time to shift to a new model of energy production. Crucially, however, once the high upfront investment costs have been circumnavigated, the shift to renewables would actually be cost positive, the reports conclude. "The fuel savings up to 2030 would amount to $2.17B, seven times more than the additional investment costs," states Sven Teske, an author of Energy [R]evolution. "Over 30 years, India would make money." Both reports offer recommendations for how such a shift could happen. Proposed steps include a widespread scaling-up

of both decentralized energy production & centralized renewable energy production (particularly solar photovoltaics, concentrating solar power, wind, & biomass); Use of combined heat-&-power systems at the point of generation; Decarbonization of transport fuel (with an emphasis on electric vehicles & other sustainable forms of transportation); Increase in R&D across energy segments; & Improvements in the energy efficiency of buildings, transport, appliances, industrial processes, & power transmission. They also suggest granting priority access to the grid for renewables, creating an innovative legal structure for incentivization & taxation, & rallying both public support & international technological & financial assistance to accelerate fast & effective change. Restraining emissions from energy use in India will require that fuel allocation & energy efficiency be improved to their maximum potential, some of which can be accomplished by the following four shifts in strategy: Shift in long-haul freight movement from road to rail in order to reflect the economic cost of transportation for each mode; Shift in cooking fuel from kerosene to LPG to encourage the use of more efficient stoves; Electrification of non-electrified households which would reduce kerosene consumed for lighting; Replacement of diesel pumpsets with electric pumpsets. On the issue of investment costs, TERI found that a shift to a 92-percent renewables share in India's energy supply would result in a doubling of domestic carbon emissions by 2031 (compared with a seven-time increase under the current trajectory) & would cost an estimated 457 trillion Rupees ($9.6 trillion). This is contrasted with a 75-percent renewables share, which would result in a tripling of emissions by 2031 & cost an estimated 260 trillion Rupees ($5.4 trillion). Advantages of renewable energy There are many energy sources today that are extremely limited in supply. Some of these sources include oil, natural gas, and coal. It is a matter of time before they will be exhausted. The fact is energy demands will continue to increase and estimates are that fossil fuels can only meet our energy demands for another fifty to seventy years. What is now thought of as renewable energy has been used by man since prehistory. The burning of biomass for heat and light has been practiced throughout recorded history. Windmills and watermills have converted the potential energy of water for centuries, to a power source for small-scale agricultural and industrial processes. Through research and development, as well as, new technologies, the hope is many of the disadvantages of renewable sources of energy can be eliminated and we can successfully incorporate it into our power supplies. So in an effort to find alternative forms of energy, the world has turned to renewable energy sources as the solution. There are many advantages to this.Non-renewable fossil fuel use causes global environmental problems. You could be totally energy efficient, eliminating your dependency on the world's fossil fuel supplies. Use as much or as little of the renewable electricity of which you generate, without feeling guilty for any wastage. Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). In 2006, about 18% of global final energy consumption came from renewables, with 13% coming from traditional biomass, which is mainly used for heating, and 3% from hydroelectricity.

Conclusion Renewable energy sources have environmental, health and cost advantages over fossil fuels, Renewable energy sources are crucial to sustainable human life on planet Earth, Using renewable energy source has the advantage of transforming ourselves into truly flourishing social human beings. The sun, wind, tides, and geothermal activity are all renewable and free to use. After the initial cost of;

solar panels, wind turbines, and geothermal energy equipment, the only cost to the consumer relates to any required maintenance. No more price rises from gas, energy or electricity companies. While most renewable energy projects and production is large-scale, renewable technologies are also suited to small off-grid applications, sometimes in rural and remote areas, where energy is often crucial in human development. Hence this is the best bet for a country like India. Bibilography 1)<http://www.businessgreen.com/business-green/news/2258824/india-proposes-coal-tax-pay> Green Energy, Vol.6, No.1, Jan-Feb 2010 Terra Green Vol.2, Issue 11 , February 2010 Powerline, Vol.14, No.5, January 2010 Teri-Newswire, Vol.16, No.2, 16-31 January 2010 Solar Energy Review, Vol.2, Issue.2, January 2010 2)Stockholm Environment Institute (SEI) report on: Reducing Greenhouse Gas Emissions in India & Financial mechanisms & opportunities for EU-India collaboration: <http://seiinternational.org/?p=publications&task=view&pid=1314> 3)TERI (The Energy & Resources Institute), New Delhi, India: <http://www.teriin.org/> 4)The world's 12 largest GHG emitters: <http://www.cbc.ca/world/story/2009/12/14/f-climate-dirtydozen.html> 5)Efficient Power Generation (Greenhouse Gas Pollution Prevention [GEP] Project in India): <http://www.pi.energy.gov/documents/EWSL_gep.pdf> 6)Greenhouse Gas Inventorisation a Confederation of Indian Industry (CII) Godrej GBC Initiative: <http://www.greenbusinesscentre.org:9080/site/mmbase/attachments/199088/GHGBrochure.pdf> 7)Paper on Positioning the Indian Coal Power Sector for Carbon Mitigation: Key Policy Options Harvard-Belfer Center for Science & International Affairs: <http://belfercenter.ksg.harvard.edu/publication/18830/positioning_the_indian_coalpower_sector_for _carbon_mitigation.html> 8)Making India Energy Efficient: Programmatic Framework Project for Energy Efficiency in India: <http://data.undp.org.in/cc/ProjectBriefs/Making%20India%20Energy%20Efficient.pdf> 9)Solar Plan Could Revolutionize India's Energy Sector: <http://www.worldwatch.org/node/6122> 10) Integrating Ecology & Economy in India: <http://www.unu.edu/unupress/unupbooks/80836e/80836E0q.htm> 11)India Announces Plan to Slow Greenhouse Gas Emissions: <http://www.nytimes.com/2009/12/04/world/asia/04india.html> 12)Will anyone pay for the smart grid ? <http://news.cnet.com/Will-anyone-pay-for-the-smart-powergrid/2100-11392_3-6184046.html> 13)European super-grid: <http://www.guardian.co.uk/environment/2010/jan/03/european-unitesrenewable-energy-supergrid> 14)Smart Grid: A Smarter Grid for India: <http://www.smartgridnews.com/artman/publish/industry/A_Smarter_Grid_for_India_303_printer.ht ml> 15)5 Reasons Why Developing Countries Need Smart Grids: <http://cleanenergysector.com/2010/02/5-reasons-why-developing-countries-need-smart-grids-too/> 16)Smart Grid White Paper by Rahul Tongia, CSTEP (Center for Study of Science, Technology & Policy): <http://www.cstep.in/node/47> 17)Wired for Progress Building a National Clean Energy Grid: <http://www.americanprogress.org/issues/2009/02/wired_for_progress.html>

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