Page 286 - Low Carbon Development in China and India
P. 286
Some of state-level energy conservation initiatives are as follows: 3.2
• Urja Ankur Fund in Maharashtra (conceived in 2006)
• Gujarat Green Energy Fund (conceived in 2011)
• Rajasthan State Energy Conservation Fund (conceived in 2010)
• Haryana State Clean Energy Fund (conceived in 2010)
• Kerala State Energy Conservation Fund (conceived in 2010)
Apart from the above mentioned state energy conservation funds,
states such as Odisha, Uttar Pradesh, and Punjab among others
have also constituted their energy conservation funds so that they
could receive the fund disbursed by the BEE to invest in energy
efficiency projects.
The Urja Ankur Fund was designed to promote power generation
using bagasse as a source during the first phase and small hydro,
municipal waste and geothermal energy in the second phase. It helps
project development by placing 20 per cent equity and providing
project development support. The Urja Ankur fund is an example of
a fund created by collecting an additional amount in electricity bills
but without any contribution from the energy charges development.
The fund was created to support large renewable energy projects in
Maharashtra with a legislative mechanism, allowing an additional
charge to be levied on industrial consumers in the state (IIEC 2012).
The focus of operation of these funds has been the promotion of
medium to large renewable energy projects.
Special Financing Institutions Under Public Finance
There is a need to facilitate public sector investment for low carbon
growth, build carbon market access, accelerate technological
innovation, and support adaptation to mitigate the impacts of climate
change. Support for development and commercialization of low
carbon technologies (LCTs) needs to be significantly augmented by
targeted public sector financing interventions, directly by the Indian
government, through its agencies or indirectly through universities
or research institutes. Public sector funding would reduce the risks of
investing in LCTs and demonstrate their commercial viability so as to
create a scaled-up, commercially viable business activity. This in turn
would stimulate and mobilize private finance and investment to scale
up their deployment over time.
The Indian government, realizing the barriers associated with
financing renewable energy projects, under its strategy to develop
sustainable energy, created the Indian Renewable Energy Development
Agency (IREDA) in 1987. IREDA’s resources have mostly come from
Chapter 2 Innovative Financing for Low Carbon Development 251
• Urja Ankur Fund in Maharashtra (conceived in 2006)
• Gujarat Green Energy Fund (conceived in 2011)
• Rajasthan State Energy Conservation Fund (conceived in 2010)
• Haryana State Clean Energy Fund (conceived in 2010)
• Kerala State Energy Conservation Fund (conceived in 2010)
Apart from the above mentioned state energy conservation funds,
states such as Odisha, Uttar Pradesh, and Punjab among others
have also constituted their energy conservation funds so that they
could receive the fund disbursed by the BEE to invest in energy
efficiency projects.
The Urja Ankur Fund was designed to promote power generation
using bagasse as a source during the first phase and small hydro,
municipal waste and geothermal energy in the second phase. It helps
project development by placing 20 per cent equity and providing
project development support. The Urja Ankur fund is an example of
a fund created by collecting an additional amount in electricity bills
but without any contribution from the energy charges development.
The fund was created to support large renewable energy projects in
Maharashtra with a legislative mechanism, allowing an additional
charge to be levied on industrial consumers in the state (IIEC 2012).
The focus of operation of these funds has been the promotion of
medium to large renewable energy projects.
Special Financing Institutions Under Public Finance
There is a need to facilitate public sector investment for low carbon
growth, build carbon market access, accelerate technological
innovation, and support adaptation to mitigate the impacts of climate
change. Support for development and commercialization of low
carbon technologies (LCTs) needs to be significantly augmented by
targeted public sector financing interventions, directly by the Indian
government, through its agencies or indirectly through universities
or research institutes. Public sector funding would reduce the risks of
investing in LCTs and demonstrate their commercial viability so as to
create a scaled-up, commercially viable business activity. This in turn
would stimulate and mobilize private finance and investment to scale
up their deployment over time.
The Indian government, realizing the barriers associated with
financing renewable energy projects, under its strategy to develop
sustainable energy, created the Indian Renewable Energy Development
Agency (IREDA) in 1987. IREDA’s resources have mostly come from
Chapter 2 Innovative Financing for Low Carbon Development 251
