Page 315 - Low Carbon Development in China and India
P. 315
Renewable Renewable energy resources, such as wind, or solar, are not equally distributed across
Energy India. Moreover, small states like Delhi do not have areas to tap enough renewable
Certificate energy resources. This would lead to unequal distribution of obligations. To avoid this
Scheme situation, CERC (Central Electricity Regulatory Commission) has introduced the REC
(Renewable Energy Certificate) scheme wherein, the renewable energy generator can sell
electricity at a price decided by the respective regulatory commission. The REC registry
issues one REC for each MWh of electricity sold. The certificate can then be purchased
by the obligated entities that are not able to buy renewable electricity directly.
Accelerated Accelerated depreciation is a useful tool for deferring corporate income taxes by
depreciation reducing taxable income in current yearsby considering the amount of depreciation each
year as higher during the pioneering years of an asset’s life. Reintroduction of AD, which
was withdrawn in 2012, is already giving a significant fillip to wind energy generation.
Generation GBI incentivises actual generation of power. The GBI scheme for Grid Interactive Wind
Based Power projects was extended in 2013 for the whole Twelfth Plan period. Under this
Incentives scheme, INR 0.50 is provided to wind electricity producers per unit of electricity fed into
the grid for a period not less than four years and a maximum of 10 years with a cap of
INR 100 lakh per MW. The total disbursement in a year will not exceed one-fourth of the
maximum limit of the incentive.
Source: Author’s compilation
Distribution companies Renewable energy generators
• Meet RPO by self generation • Sell renewable energy power at Feed-in-
• Purchase renewable energy power from Tariff
third parties • Sell renewable energy power at Average
• Purchase RECs Pooled Purchase Cost (APPC) and RECs
and the REC market
• Contract directly with obligated entities
through power purchase agreements
Figure 2.5 Options available for distribution companies and renewable energy generators
Source: CPI and ISB (2013)
Figure 2.5 gives a summary of the options available for RE developers
and the buyers (distribution companies).
Given the importance of renewable energy, there have been various
innovations and one such policy innovation is captured later in this
section in a short case study on the concept of ‘solar cities’ in India (see
Box 2.3).
Currently, the available business models for RE generators are as
follows:
• Sale to utility at preferential tariff/feed-in-tariff (RPOs cannot be
met in this method)
280 Low Carbon Development in China and India
Energy India. Moreover, small states like Delhi do not have areas to tap enough renewable
Certificate energy resources. This would lead to unequal distribution of obligations. To avoid this
Scheme situation, CERC (Central Electricity Regulatory Commission) has introduced the REC
(Renewable Energy Certificate) scheme wherein, the renewable energy generator can sell
electricity at a price decided by the respective regulatory commission. The REC registry
issues one REC for each MWh of electricity sold. The certificate can then be purchased
by the obligated entities that are not able to buy renewable electricity directly.
Accelerated Accelerated depreciation is a useful tool for deferring corporate income taxes by
depreciation reducing taxable income in current yearsby considering the amount of depreciation each
year as higher during the pioneering years of an asset’s life. Reintroduction of AD, which
was withdrawn in 2012, is already giving a significant fillip to wind energy generation.
Generation GBI incentivises actual generation of power. The GBI scheme for Grid Interactive Wind
Based Power projects was extended in 2013 for the whole Twelfth Plan period. Under this
Incentives scheme, INR 0.50 is provided to wind electricity producers per unit of electricity fed into
the grid for a period not less than four years and a maximum of 10 years with a cap of
INR 100 lakh per MW. The total disbursement in a year will not exceed one-fourth of the
maximum limit of the incentive.
Source: Author’s compilation
Distribution companies Renewable energy generators
• Meet RPO by self generation • Sell renewable energy power at Feed-in-
• Purchase renewable energy power from Tariff
third parties • Sell renewable energy power at Average
• Purchase RECs Pooled Purchase Cost (APPC) and RECs
and the REC market
• Contract directly with obligated entities
through power purchase agreements
Figure 2.5 Options available for distribution companies and renewable energy generators
Source: CPI and ISB (2013)
Figure 2.5 gives a summary of the options available for RE developers
and the buyers (distribution companies).
Given the importance of renewable energy, there have been various
innovations and one such policy innovation is captured later in this
section in a short case study on the concept of ‘solar cities’ in India (see
Box 2.3).
Currently, the available business models for RE generators are as
follows:
• Sale to utility at preferential tariff/feed-in-tariff (RPOs cannot be
met in this method)
280 Low Carbon Development in China and India
