CAG plans performance audit of renewable energy sector

Renewable energy is no longer an alternate energy, says Comptroller and Auditor General Shashi Kant Sharma

Public auditor CAG today said that it will undertake performance audit of the new and renewable energy sector at all India level with a view to promoting alternative sources of energy.

"Keeping in view the tremendous growth potential of renewable energy and its growing importance for our economy my office plans to undertake an all India performance audit of the new and renewable energy sector in the near future", Comptroller and Auditor General Shashi Kant Sharma said.

He was speaking at the inaugural session of the Stakeholders Workshop on New and Renewable Energy, which among others, was attended by New and Renewable Energy Minister Farooq Abdullah.

Sharma said that it was imperative to encourage renewable sources of energy as the conventional sources like oil, gas, hydel and thermal power may not be able to meet the growing energy demand of the country.

"Dependence on huge import of oil and coal, would seriously challenge India's energy security", he said, adding there were also constraints in setting up large number of hydro plants and nuclear power projects.

Sharma said: "With constraints faced in resource availability and in delivery mechanisms, traditional means of energy supply are falling short. This is likely to be the case in the foreseeable future too, so energy access will continue to remain a problem."

Moreover, he said, India would be needing to take host of steps to meet its international commitments with regard to reducing its carbon intensity by 20-25 per cent by 2020 in comparison to its 2005 level.

 In view of the issues faced by the energy sector, Sharma said, "renewable energy is no longer an alternate energy, but will increasingly become a key part of the solution to meet the nation's energy needs and possibly contribute significantly to inclusive development by meeting rural energy needs."