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| OREDA moots 'green cess' to promote renewable energy |
| Bishnu Dash / Kolkata/ Bhubaneswar Sep 19, 2009, 00:34 IST |
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To promote the use of renewable energy and reduce dependence on conventional power, the Orissa Renewable Energy Development Agency (OREDA) has decided to propose the Orissa government to impose a “Green Cess” on the electricity consumers.
It is in the process of sending a formal proposal in this regard to the state government through the science and technology department. The proposal suggests for levy of cess at the rate of 5 paise per unit from the consumers of conventional power.
The governing body of OREDA under the chairmanship of the state science and technology minister Ramesh Majhi, recently approved the proposal, sources said.
This will be in line with the moves of the states like Chattisgarh, Madhya Pradesh, Andhra Pradesh and Maharashtra which have imposed a cess on the consumption of conventional power ranging from 1 paise to 5 paise per unit.
Sources said, the proposed cess should be used exclusively for promotion of renewable energy, energy efficiency and energy conservation among others. Orissa has a renewable energy power potential of about 2500 Mw excluding solar energy which is unlimited. Though some private developers have evinced interest to invest in this sector after adoption of the renewable energy power policy by the state government, the progress is very slow.
This is mainly attributed to the lengthy pre-project process a developer has to go through which includes assessing the resource, preparing pre-feasibility report (PFR) or detailed project report (DPR), locating and procuring land, and building up necessary infrastructure for communication, power evacuation and other related work. For exploitation of renewable energy, assessing the renewable energy resources, identifying project locations for wind farms, solar farms, geothermal sources, developing shelves of pre-feasibility report (PFR) and developing the infrastructure like road communication, power evacuation facilities are badly needed.
Since this will require huge investment and the state will not be in a position to bear the cost, the proposed cess will be able to mobilise required funds for the purpose. While these activities are expected to be remunerative for the state, it will help to accelerate the pace of exploitation of renewable energy. The funds will also support the development of renewable energy SEZs and public-private-partnership (PPP) projects.
Meanwhile, OREDA is in the process of preparing a vision document for the organization. Since it has evolved in its 25 years of existence from rural energy technologies to the one dealing with power production from small hydro, solar, wind, biomass, biogas and biodiesel, energy conservation and energy efficiency, developing a vision document to prepare a road map to achieve the future objective has become a necessity.
Bhubaneswar-based Xaviers Institute of Management (XIMB) or any other reputed Institute like World Institute of Sustainable Energy, Pune specializing in renewable energy may be asked to prepare the vision document, sources added.
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