Centralizing Renewable Energy Certificates

ANSHUL GARG, SHAILENDER SINGH CHAUHAN, VEENA PAILWAR

Abstract


Demand and supply of energy has always been a big issue for India. Especially at the time when it is going through a phase of industrial development constituting approximately 56% service industry and 28% manufacturing industry of total GDP with a growth rate of 6-7% on an average.

Currently installed capacity of India is 1049 GWh in which energy production via Non Renewable sources of energy constitutes 70%, energy production via Conventional Renewable Sources of energy constitute 20%, and energy production via New Renewable Sources of energy constitutes 10% of total installed capacity. India has set up a target of meeting the demand of 2000 GWh till 2020. But looking at the current growth rate the target does not seems to be realistic if the current proportion of energy production from Non Renewable and Conventional Renewable Sources of energy is kept constant.

Therefore, in order to achieve the set target, nation has to depend more on no-renewable sources of energy. But the energy production via such sources is not sustainable; rather it is harmful for the environment over the longer period of time. Therefore, in order to meet the set target and to achieve environment friendly sustainable growth, nation has to employ more resources to exploit renewable sources of energy. But the cost of exploitation of energy via renewable sources of energy is also very high, making it less attractive from the investment point of view. Renewal Energy Certificate (REC) is one of the initiatives that have been taken toward the sustainable growth. As there are loop holes of the existing REC model, we have proposed few changes, which involves introduction of Renewable Energy Investment Regulatory Authority (RIERA). The proposed change would not only help in overcoming loop holes in the existing model but also help in environment friendly sustainable growth over a longer period of time.


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