GERC seeks to raise renewable power purchase limit to 8%

Giving further push to its bid to emerge as the greenest state, Gujarat Electricity Regulatory Commission (GERC) is now seeking to raise the purchase limit for renewable energy to 8 per cent of the total power consumed by the state in the next one year. Currently renewable energy contributes 2 per cent of the total power consumed by the state.

GERC has prepared a draft amendment to take the renewable purchase limit to 10 per cent by 2012 in a phase-wise manner.

"For the first year, the target is to achieve 8 per cent and this limit will be raised every year by 1 per cent for till we achieve 10 per cent mark," said a senior government official close to the development.

The chief minister had earlier set the 10 per cent target of 2014 however looking at the tremendous response in renewable sector we will be able to achieve this a year in advance, sources said. In the next one year, the contribution to renewable will be cheifly from wind as solar projects are at a very nascent stage and would take time to commence.

The state has an installed capacity of about 1500 MW and is looking at adding atleast another 1000 MW in a year's time. Gujarat which ranks third has chalked out an ambitious plan to overtake Maharashtra and Tamil Nadu in the next two to three years by generating over 5,000 MW.

Self sufficiency in power generation is the main focus area of the Gujarat government. Gujarat's present installed capacity is over 10,000 MW against the unrestricted power demand of 11,500 MW, a deficit of 2,500 Mw. The 16th Electric Power Survey (EPS) carried out by the Central Electricity Authority (CEA) estimates that the demand is likely to grow to over 14,000 Mw by 2012. Going by the estimates, Gujarat would require an installed capacity of 18,700 Mw by 2012 to meet the growing power demand. The state government has planned to add 11,164 Mw by then.

Suzlon is aiming to set up a 1,000 MW wind park in Gujarat for an investment of Rs 9,000 crore while Vestas and Enercon have signed MoUs with Gujarat government for 1,000 MW and 600 MW respectively.

Companies MoUs include Sydney-based Abellon Bioenergy for a 1,000 Mw wind farm project with an investment of Rs 5,500 crore, Suzlon’s Rs 9,000 crore investment for producing 1500 MW, NTPC’s Rs 3,000 crore investment for 500 MW and Enercon’s Rs 3,500 crore project for producing 600 MW of wind power. Besides Danke and Torrent Power have also shown interest for 100 MW wind power projects in the state.

The state government has set up a seperate department for climate change to tackle the menance of global warming. The government also chalked out a separate solar power policy early in 2009 under which it proposes to purchase 500 mw of solar power every year from developers on first come basis.