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`Green power subsidy key to tap eco-friendly sources'

Our Bureau

CHENNAI, Aug. 2

THE Centre has to formulate a national policy on non-conventional and renewable energy sources in harmony with State-level programmes to attract private investment in the sector, according to Mr. Sarvesh Kumar, Chairman, Indian Wind Turbine Manufacturers ' Association (IWTMA).

He told a press conference here on Wednesday that green power subsidy should be awarded to promote increased exploitation of eco-friendly sources. Developed countries award such subsidies, and there is active participation from industries there to purcha se green power as a commitment to environmental conservation, he said.

According to him, in India, despite the existence of a separate Ministry of Non-Conventional Energy Sources (MNES), not much policy initiative has been taken. But, largely due to the interest evinced by private sector, the present installed capacity in w ind turbines is 1,170 MW compared to two MW in 1989, he said.

Peak installation was in 1994-95 when 235 MW were installed, but the figure dropped the next year due to industrial slump. In 1998-99, it was 54 MW but picked up to 116 MW in 1999-2000. There were 15 manufacturers in the country, with seven located in Ta mil Nadu. But with the lack of focussed initiatives, there is not likely to be major developments in the area, he said.

According to Mr. D.V. Giri, Secretary and Committee Member of the IWTMA, the situation at the State-level was discouraging. Andhra Pradesh has withdrawn permission for third party sales; Gujarat does not have a policy on wind energy; in Karnataka, the fo rmalities were too long-winded; and in Madhya Pradesh, the policy for joint sector investment has been withdrawn this year.

In Tamil Nadu, which has more than 60 per cent of India's installed capacity in wind energy, third party sale is not permitted and the hike in charge on reactive power to Re. 1 is a major disincentive, he said.

The recent visit of the Prime Minister, Mr. A.B. Vajpayee, to Tamil Nadu to dedicate the Centre for Wind Energy Technology (C-WET) at Kayathar and his assurance that a target of 10 per cent energy from renewable sources is significant to the industry. Th e potential in India was 45,000 MW, of which just a fraction is being exploited, he said.

Power requirement was increasing by 7-8 per cent annually, but supply was going up by 2-3 per cent. Investment of Rs. 2,56,000 crores in conventional systems would be needed to bridge the gap by 2003. Wind energy could supplement the requirement in a cos t-effective manner because of the absence of recurring cost, and it was non-polluting, he said.