Buy at least 5% renewable energy: CERC orders state utilities

The Central Electricity Regulatory Commission (CERC) today said that all power state utilities in the country will have to purchase at minimum five per cent of their grid purchase from renewable energy sources from 2009-10 onwards and 15 per cent by 2020.

In his special address at Green Power 2009, an international conference and exposition on renewable energy, organised by Confederation of Indian Industry at Chennai today Pramod Deo, chairperson and chief executive, CERC said that the regulator in carrying out of an internal action plan on global climate change.

The Cerc will determine the active minimal buy standard for renewal energy which will help bring down emission from the electrical energy sector. “While the minimum purchase standard will be fixed, from 2009-10 onwards all electrical energy utilities in the country will have to buy renewable energy. There will be one per cent increase in the purchase of renewable energy for every year for the next 10 years,” he said.

He added, currently 20 state electrical energy regulative commissions (SERCs) have already determined the percentage of energy that has to be bought from renewable sources. “While Karnataka and Tamil Nadu are currently buying 10 per cent of their grid purchase from renewable sources, Maharashtra has reached four percent target,” he said.

“A minimal renewable energy purchase obligation also has to be fixed,” he said.

Deo further revealed that the ministry of new and renewable energy is also carrying on a feasibility study for introducing renewable energy certificates. “One certificate will be equal to 1 Mw of renewable energy generated. The certificates can be traded to meet the mandatory targets of renewable energy purchase,” he said.

He added, though the certificate to all forms of renewable energy the government is thinking of introducing separate certificate for solar energy.

The certificate will be valid for one year and it can be traded through the power exchanges. “Whether trading companies will be allowed to do trading, we are currently thinking about it, he said.

The new system is likely come into place from April 2010, said Deo and it will be bought by those states which are facing deficit currently. A registry from National [i] Load Despatch Centre would handle.