Page 316 - Low Carbon Development in China and India
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• Sale of power under REC scheme (RPOs can be met) 3.2
• Captive power consumption (RPOs can be met)
Box 2.3: Solar cities in India
Rapid urbanization is increasing the demand for power quite drastically in India. The
conventional system is not keeping pace with the energy demand. Therefore, the concept
of ‘solar cities’ fit the Indian context well. The Ministry of New and Renewable Energy
launched the ‘Solar Cities’ programme (sometimes also referred to as Green Cities)
which aims to support and encourage urban local bodies (ULBs) to prepare a roadmap
to guide their cities in becoming ‘solar cities’ (TEDDY 2012). Under the scheme,
60 cities/towns are proposed to be supported for development as ‘Solar/ Green Cities’.
According to the Status Note on Solar Cities by MNRE, till January 15, 2015, 48 cities
have been issued the sanctions, out of which 44 have prepared their master plans, seven
have been given ‘in-principle’ approvals after which their respective corporations/state
nodal agencies are in the process of engaging consultants for preparation of master
plans. Eighteen cities have also provided their Detailed Project Reports (DPRs) which
are under consideration.
Chandigarh is one such designated solar city. A sum of INR 16.25 crore had been
allocated to the union territory administration for implementing the Model Solar
City Programme in financial year 2013-14. According to Mr Santosh Kumar, CEO of
Chandigarh Renewable Energy, Science and Technology (CREST), overall capacity of
5 MWp rooftop SPV plants have been commissioned on more than 75 government
buildings of UT Chandigarh and the UT administration has also decided to enhance
its solar energy target to 30 MW by 2022 from the earlier target of 10 MW. Though
at the moment, Chandigarh’s financial allocation is completely public financed,
private investments can soon find its way in the solar cities programmes across India.
Urban areas of India have the financial resources to absorb the risks of trying out new
technologies, such as the ones envisaged in solar cities. Learning may be drawn with
mobile telephones in India. Though mobile phones are now all pervasive and can be
found in every corner of India, they were first deployed in urban areas. Urban areas may
well be the necessary platform for solar projects to be implementable on a large scale
throughout India.
2.3.2 Non-renewable Energy
India’s installed electricity generation capacity reached 272.7 GW
in 2015 (CEA 2015). The share of the different resources in India’s
installed capacity is given in Figure 2.6. Power generation is the single
largest source of CO2 emissions in India and thermal power plants are
the single largest sources of these emissions. India is and will remain
dependant on thermal power plants for quite some time. Coal, in
particular, is expected to remain the mainstay of India’s power sector
Chapter 2 Innovative Financing for Low Carbon Development 281
• Captive power consumption (RPOs can be met)
Box 2.3: Solar cities in India
Rapid urbanization is increasing the demand for power quite drastically in India. The
conventional system is not keeping pace with the energy demand. Therefore, the concept
of ‘solar cities’ fit the Indian context well. The Ministry of New and Renewable Energy
launched the ‘Solar Cities’ programme (sometimes also referred to as Green Cities)
which aims to support and encourage urban local bodies (ULBs) to prepare a roadmap
to guide their cities in becoming ‘solar cities’ (TEDDY 2012). Under the scheme,
60 cities/towns are proposed to be supported for development as ‘Solar/ Green Cities’.
According to the Status Note on Solar Cities by MNRE, till January 15, 2015, 48 cities
have been issued the sanctions, out of which 44 have prepared their master plans, seven
have been given ‘in-principle’ approvals after which their respective corporations/state
nodal agencies are in the process of engaging consultants for preparation of master
plans. Eighteen cities have also provided their Detailed Project Reports (DPRs) which
are under consideration.
Chandigarh is one such designated solar city. A sum of INR 16.25 crore had been
allocated to the union territory administration for implementing the Model Solar
City Programme in financial year 2013-14. According to Mr Santosh Kumar, CEO of
Chandigarh Renewable Energy, Science and Technology (CREST), overall capacity of
5 MWp rooftop SPV plants have been commissioned on more than 75 government
buildings of UT Chandigarh and the UT administration has also decided to enhance
its solar energy target to 30 MW by 2022 from the earlier target of 10 MW. Though
at the moment, Chandigarh’s financial allocation is completely public financed,
private investments can soon find its way in the solar cities programmes across India.
Urban areas of India have the financial resources to absorb the risks of trying out new
technologies, such as the ones envisaged in solar cities. Learning may be drawn with
mobile telephones in India. Though mobile phones are now all pervasive and can be
found in every corner of India, they were first deployed in urban areas. Urban areas may
well be the necessary platform for solar projects to be implementable on a large scale
throughout India.
2.3.2 Non-renewable Energy
India’s installed electricity generation capacity reached 272.7 GW
in 2015 (CEA 2015). The share of the different resources in India’s
installed capacity is given in Figure 2.6. Power generation is the single
largest source of CO2 emissions in India and thermal power plants are
the single largest sources of these emissions. India is and will remain
dependant on thermal power plants for quite some time. Coal, in
particular, is expected to remain the mainstay of India’s power sector
Chapter 2 Innovative Financing for Low Carbon Development 281
