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Green power in the country requires a major policy push in the form of the separate legislation that is now being discussed. Countries such as Germany, China and Australia have enacted laws specific to the renewable energy sector, with good results. Policy-makers have to be sensitised to the need for such legislation, if green power is to really get a boost. India has had a separate ministry for renewable energy for some time but the progress in tapping alternative sources has been limited. At 10,500 MW (wind power alone constituting 7,000 MW) it accounts for less than 10 per cent of the country’s total electricity capacity of 1,32,000 MW, while the potential for renewable energy is estimated at more than 1,80,000 MW.

The benefits of green power cannot but be over-emphasised, especially when there are concerns over global warming. Measures such as carbon trading, specifying a renewable portfolio standard for distribution utilities and air pollution laws will help, but they are not enough to support green power development. The sector requires large funds for research to develop newer and more efficient technologies, but investors are loath because of perceived higher risks. A separate law will at least assure them certainty in policy. India can learn from the renewable energy laws in Germany, Australia and China. Germany, for instance, has met well ahead of schedule the target of renewable energy as a percentage of total electricity generated. India’s draft legislation advances the target of achieving 10 per cent of electricity generation from renewable sources by two years to 2010, proposes making renewable electricity and fuel purchase obligation mandatory, calls for setting up technology missions on solar energy, bio-fuels and hydrogen, and emphasises accelerating bio-fuel development and transportation energy to replace fossil fuels.

However, before the law is enacted a number of steps need to be taken. One, the electricity regulatory commissions in the States need to come to a consensus on renewable portfolio standards — specifying a percentage of power purchased and sold by the distribution utilities from renewable sources — and on tariffs. Some States have a low potential for renewable energy sources while in others the potential may be quite high. This has to be balanced and can be done through an instrument used in countries like Australia — a tradable renewable energy certificate — and in permitting inter-State sale of power from renewable sources. Another major pre-requisite is a national-level updated database on the renewable energy potential and a more accurate measurement of how much the sector actually contributes. With these done and a separate law in place, funds can be expected to flow in for green power development.

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