In order to encourage independent power producers to enter the renewable energy sector, the government today said they were drafting a proposal to introduce a new renewable energy law. The law include guidelines on the renewable energy sector and issues like tariffs and others. | |
| "We feel this kind of a law is needed as there is hardly any mention of renewable energy in the Electricity Act and to give a fillip to this industry, we need to introduce a law," director of the Ministry of New and Renewable Energy B Bhargava said on the sidelines of Solar India 2007. |
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| The minister said the law could take years to finally take shape and that it was still being drafted. |
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| Though rich in renewable resources, India lags the West in generation of renewable energy. However, many companies have announced initiatives in the field and generation of power through biofules and wind energy has gained momentum over the past few years. |
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| According to experts a new law in the field of renewable energy is required to give an incentive to the private sector. |
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| "Some 99 per cent of the investment in the renewable energy sector is from the private sector and only about 1 per cent is from the state. At least the government should provide a stable policy framework to the private sector," director General of the World Institute of Sustainable Energy (WISE) G M Pillai said. |
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| WISE has also sought the subsidies from the government to ensure that the sector develops. |
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