YP Chawla 1 of 14 India’s Sustainable Green Growth – Rural Sector thru Renewables YP Chawla – CEO Zoom Developers P Ltd. firstname.lastname@example.org ; 98107-08707 Preamble: Integrating the Rural Economy with main stream is the major challenge that India is facing today. Government has embarked upon number of Scheme for the purpose. Rural Electrification, Decentralised Power Generation, Prime Minister Rural Roads Scheme, Increased Irrigations, Telephone connection, Drinking Water Supply, Sanitation, all lead to Power requirements for development of the Rural Sector. Renwable Energy thru’ Solar(Alternative options compared & Challenges facing these technologies presented), Biomass based power generation, Biodiesel, Micro Hydel , other Renewable Energy Technologies – all have a great exploration potential can well integrated in the development of Rural economy & for leap froging India’s Fig 1 development using green path. Key words: Renewable Energy Technologies, Rural Development, Rural Electricity Supply, Green Energy, Sustainable Growth, Energy Development - a must for Development of Country’s Economy India’s Power Infrastructure- Availability & Requirements Table 1 Unit Value Unit Value Installed capacity MW 145,554.97 Renewables % 5 8th World Rank Addnl. Gen. Capacity MW 100,000 Addnl. Reqmt MW 90,000 by 2019 Reqd. immdtly Electricity production Bn 590 Electricity Kwh 612 ( less than kwh consumption 50% of China) Per capita R & D Expenditure % to 0.85 Power Mn 5.7 – World’s on Infrastructure GDP Transmn Ckt Kms 3rd Largest Average Energy % of 7 All India Peak % of 12 (1100-1700 Shortfall Gen. Avg. Demand Gen Hrs) Shortfall India is currently experiencing a rapid growth in energy demand and has to match its neibouring China, accompanying with economic growth and industrialization for its huge population base ( Fig 1). Expanding its current base of energy development (Table 1) & supply is therefore, a major challenge, which offers immense opportunities for tapping the renewable energy potential. The speed of Economic Growth is not to be impeded under the pressure of Developed World’s – Cimate Control regime. The Energy development is always an integral part of the economic policy, & the efficient use of resources and long-term sustainability remains a core objective of economic planning. Sustainability also encompasses efficient harnessing of available natural resources & issues related to ecological balance in addition to an established delivery mechanism, prevalent systemic technological constraints and pressing compulsions to meet the priority needs of the economy, economic equity and self-reliance. Thus, as a basic need of the economy, security of energy supply becomes an imperative. YP Chawla 2 of 14 India has embarked upon for promoting Renewable Energy technologies (RET) to meet the Energy Security being in harmony with Nature & exempt from harmful emissions, and servicing the large rural population. Rising oil prices and climate change issues are shaping global energy agenda. Renewable energy has become a viable commercial option for power generation and fuel switching in industry, transport (including railways) in many places. Though India has taken some steps towards developing the Renewable Energy sector, which are at various levels of effectiveness, a firm RE motivating policy with integrating targets, fresh impetus and visions of various departments and with an effective mechanism based on PPP will provide a more Comprehensive and sustainable solution. Why Rural… An essential requirement for accelerating the Countries economic growth is by connecting Villages to the main Stream. Energy such required is to cater for small & micro enterprises, Agriculture, Cold Chain, education & ICT……… Renewable Energy: Amogst many options, this paper limits its scope to Solar & Bio mass. Hydro & Wind have proven already. Big Hydro is sore to some of the environmentalists. Micro Hydels are to be explored at Kilo Watt Scale .Land use for Bio fuel vs. Food is to be delicately handled. Renewable Energy has a huge potential and remains unexploited to a large extent (Fig 2). India has a Compelling case for using renewable energy as the most viable option for sustainable development. Confronted with a global economic slowdown Indian Economy must seize the opportunity to restructure economic activities as well as production processes and systems by which emissions of greenhouse gases can be reduced. Harnessing Solar Power in India: India comes under a high solar Insolation band and has a lot of Waste Land like Deserts of Rajasthan, Gujarat and waste lands in other States of IndiaKeeping the Pressures of Climate Change, Energy Security, Fluctuating Crude Oil Prices, Rising demands of Energy in India, & India’s Potential in Harnessing Solar Power the National Action YP Chawla 3 of 14 Plan for Climate Change (NAPCC) has been launched by the Prime Minister includes National Solar Mission as one of important & first of the Eight National Missions for the Way forward under the said ‘NAPCC’ India’s Solar Insolation parameters are as per those well established in California ( Fig 3). Caliifornia is now moving towards Grid Parity. The approach has been comprehensive by integrating National Semiconductor Policy & National Integrated Energy Policy. Solar Photovoltaic (PV) vs Concentrated Solar Thermal (CST) - Utility Scale Projects Alternatives under Solar PV & Solar Thermal are under competition. ( Fig 4.) The cost of energy is not the only criteria for utilities seeking renewable energy. The ability to generate during periods of high demand, including into the evening, makes any renewable technology much more valuable. Additionally, minute-to-minute operating characteristics on the grid, such as the potential for rapid changes in output, are also important, especially at the utility scale. CST projects can offer both better peak capacity characteristics, with 6-8 hour thermal storage (Thermal Storages are still being made economical & being proven), as well as a smoother short- term fluctuations. While selecting an option for Rural Energy – the issues that will vary with whether we wre looking in for lighting individual houses or a cluster or power for Cottage Industry also. The solution for Individual Rural House or a hut has problems with capacity to pay for the Solar Lighting and Microfiancing for all those who live on day to day earning, who otherwise live on buying Kerosene for daily ligh and live under those conditions. This paper deals with a moderate size of the Renewable Energy Power Plant for a cluster of houses and may be a Cottage Industry and day time Power for the Agriculture. The Solar technology have a costly solution for Storage of Power as of now.Intermittent clouds going over a PV system may cause output to spike widely unless it also works on the diffused light. With a CST plant, which has thermal inertia in the heat transfer fluids, an operator can have some warning of the clouds, slow the fluid flow rate, which increases the fluid temperatures, and ride through short-term cloud events. (For reference, a wind turbine probably falls somewhere between the two technologies-there is kinetic inertia in the wind and the turbine blades, which provides a somewhat better short-term profile than PV.) While selecting Solar Thermal Vs Solar PV , Fig 5 will act as a guide. Both are driving the efficiencies . Utility scale storage technologies for PV are also being developed, and in some cases also demonstrated. Initially these will provide similar ride-through capabilities during short-term cloud YP Chawla 4 of 14 events, but as the storage technologies -up, they could potentially offer hourly storage into the evening. As of now, CST has the cost and storage advantage at some geograhic locations, but PV essentially has a geographic monopoly everywhere else. PV has also proven in terms of GWs installed. Various Companies are Developing and Commercializing thin film technologies for photovoltaics and batteries. Photovoltaic technologies covered include CIGS, CdTe, DSSC, a-Si and organic photovoltaics. Learn how these technologies (each at a different stage of development and adoption) are driven forward by both government and leading companies in the field. Photovoltaic Panels are now in advanced stge of development by various high-speed printing (or printing-like) technologies employed & are gradually being adopted (Nanosolar, G24 Innovations in the PV sector, Power Paper, Solicore and Thin Battery technology in the batteries sector), as they can be considered to be some of the fastest, least expensive and highest volume manufacturing techniques. With printed electronics becoming more prevalent, there is an increasing need for power to supply them; printing is amenable to a large number of different types of devices with the possibility of integration (e.g. to provide onboard power etc.) This is making Energy Pay back faster. Efficiency of Photovoltaic Cells is also being improved (Table -2). No apprehensions of Short Supply of Poly Silicon: Total PolySilicon Supply – Table 2 Year 2006 2007 2008 2009E 2010E 2011E 2012E Current producers 33,400 36,988 49,862 64,060 79,074 88,512 96,939 New Entrants-Current Tech 440 1,865 11,487 37,812 66,195 77,565 81,105 New Entrants-Alternate tech 500 2,150 8,625 23,925 48,150 65,500 68,100 Plus:60/50/40% of likely new 34,340 41,023 61,929 94,929 124,812 145,738 145,621 Entrants Plus Excess Production 2,338 3,699 3,740 3,203 1,977 Less Semi Conductor Demand - - - - -31,119 -34,853 -39,036 21,500 22,150 24,808 27,785 Plus Recycling 22%of IC 4,730 4,873 5,458 6,113 6,846 7,668 8,508 Plus Inventory Effects 3,258 2,625 234 5,440 2,958 1,674 871 Polysilicon for Solar 23,166 30,070 46,084 71,019 99,558 116,878 125,302 Grams /Watt 10.0 9.1 8.7 8.2 7.8 7.6 7.5 MWP Equivalent Supply(cell) 2,317 3,304 5,297 8,661 12,764 15,379 16,707 Large-scale solar power plants are now paving the way (Fig 6) A nearly-finished solar tower in Seville, Spain, tower stands forty stories tall and will be capable of powering six thousand homes when finished in 2013. With all these developments in Non-convetional & Renewable Enegy Technologies, We are moving towards a futuristic Grid depicted in the Fig 7. These provide the solutions that we are looking for Powering our Rural Sector. The writer of the paper was involved with Mathania – an Integrated Solar Thermal & Combined cycle project. The technology & thermodynamic challenges; and the work have now been initiated YP Chawla 5 of 14 by a few companies in India. The projects should be fully supported to make these viable in India to have large scale Solar Thermal. Rural Electrification… the Key Issues It is now even 61 years after independence, 56% of all rural households in India do not have electricity and use kerosene for lighting. Even for those electrified rural areas, there is a tremendous shortage of power supply. Thus it is not uncommon to have 10-15 hours of blackouts and brownouts every day in the Rural Sector which is the first & worst hit. Out of India’s Total Population of 10.6 billion, Rural Population is 7.0 billion with total Villages 610,000 with around 125,000 Un- electrified Villages & 45% Un-electrified Households, out of a total of 56% rural houses. The Primary Source of Cooking in Rural in India is still more than 80%.This is the scale of problem that we are confronted with. The Power Crises is talked about only when the house hold in New Delhi, Mumbai, Kolkata, Bangalore or other big cities fail to light. No one talks of Rural Sector and a such Rural economy has not grown beyond certain level. Renewable Energy Technologies are the solution and can help reach the India target of World’s second economy by 2050 only by integrating the Rural Economy with Nation’s main stream. India needs Sustainable Rural Development After Global meltdown, India’s economy is growing presently at the rate of 5-6% per annum. At present growth rate we will double up all the inputs in 14 years or earlier when economy heats up. Thus by 2023 we will double the consumption of petroleum products, electricity, food and other commodities to keep this growth rate. Last year we imported about Rs. 95,000 Crores worth of petroleum products and India will also require about 140,000 MW of installed electricity capacity by 2010 at an estimated outlay of Rs. 5.5 trillion (Rs. 5.5 X 1012). Thus financial outlay needed for the energy sector alone is staggering and to maintain "India shining" it is necessary that we produce as much as possible, energy and liquid fuels internally. There are about 60% of rural households, which do not have electricity, and without the basic amenities in rural India the progress of the country will be hampered. A sustainable energy development program can create an all round development. One of the possible ways to do it is the increased use of land based renewable energy resource like biomass. This will help the rural development and create tremendous wealth in these areas. With rural India shining, India will automatically shine! Three ways for Power Generation from land based renewables can be effected for our Rural Sector & can be easily implemented and sustained there: a. Generation of Electricity from Biomass and Agricultural residues. b. Liquid fuel production from biomass grown in arid regions and on wastelands and saline soils helping in land reclamation also. c. Synergy between corporate sector, national government labs and institutions and NGOs for developing Power Producing technologies and disseminated in rural. YP Chawla 6 of 14 Rural Electrification has been considered to be on Decenteralised basis or connected to the Grid. The Ground Water Pumping is done in the dark hours of the night by villagers when they get Power. The Solar Power can be connected for Rural needs during the day. Similarly the Bio Mass fueled Power Projects can help economic growth as under as one of the option: Renewable Energy for Rural Sector – Decentralised or Grid Connected- a few suggestions on Biomass. Cultivation of a variety of Salt Cedar tree that produce huge quantity of biomass per hectare, every year for many years, on poor land, while being irrigated with high salinity water. NW India has hundreds of thousands of hectares of unused or poorly used land in areas with at least 10 billion M3 of saline, or other low quality water, is available every year. Such Bio Mass will not compete on resources against food related crops on Saline Water Land. the availability in Rajasthan alone has more than 3.0 Billion M3 of net annual saline water : (Ref. the last survey -2004), enough for cultivation of 150,000 hectares of biomass plantations, using the full potential will result in production of more than 8.0 M. MT of biomass per year. Electricity Production: Based on a caloric value of 4800 Kcal/ Kg and annual production of 65 MT per hectare a 1000 hectare plantation can provide fuel for a 12-15 MW power plant year around. State governments can plan for the establishing of a 100 hectares of Salt Cedar plantation for a pilot project and as a source of further planting material. According to Punjab government officials the land and water available for biomass cultivation is around 100,000 hectares. In Haryana and Gujarat the estimation is that saline water and land availability in each state is at least 100,000 hectares & Punjab may have about approx. as much. MP and UP may have 200,000 hectares in both states together. Renewable Energy for Rural Sector – Decentralised Power Generation Vs Grid Supply. As per Anil K. Rajvanshi of Nimbkar Agricultural Research Institute (NARI), ; Each Taluka in the country produces enough agricultural residues so that all its electricity demands can be met by using them in 10-20 MW biomass-based power plants. Taluka energy self-sufficiency plan could also generate 30,000 jobs/year. With the new Electricity Act, complemented with NREGA (National Rural Employment Gurantee) can become a reality since the utility can produce and supply power to its customers without the need to go through SEBs. Taluka energy program can produce Rs. 100-crores/year wealth for the locals in terms of biomass production and setting up of new electricity-based industries. With about 3350 talukas in the country it is therefore possible to produce about Rs. 3,50,000 crores/year extra wealth through the Taluka program. With availability of assured electricity supply the growth in rural industrialization can be exponential. Rural Electricity Supply Technology (REST) mission in the Ministry of Power (MOP) was set up in Sept 2002. Though it has been slow till now, it is hoped through this mission to electrify villages by 2012. REST has been set up for providing affordable and reliable power supply to rural areas through conventional grid connection method or vides the Distributed Generation system utilizing: • Available technology options YP Chawla 7 of 14 • Innovative financing • Grass root Institutional arrangements According to MOP officials funds of about Rs. 10-15,000 crores will be made available to the rural power utilities at 2-2.5% p.a. interest rate. Thus it is envisaged that a small rural power cooperative can be set up to produce 200-500 KWe from locally produced Bio Diesel to run the Generator for power and supply all the electricity demands of one or two villages. This will make these microutilities green and will create wealth in rural areas in producing value-added item. Thus there is a need to do sophisticated R & D in producing biofuels from renewable energy sources like agriculture residues and crops specifically grown for these projects. These biofuels can easily power the existing diesel gensets & has been experimented in Chhattisgarh. Development of liquid fuels like ethanol and biodiesel from multipurpose crops should be done so that the issue of food and fuel from the same piece of land is taken care of. Sweet Sorghum for ethanol production. can provide food, fuel and fodder from the same piece of land and requires much less water than sugarcane. Thus the Government should consider funding the R & D program on biofuels. For Rural Energy Mission to succeed a very close cooperation between Corporate sector, Government and NGOs is needed. The corporate sector can provide the necessary technological and managerial support, NGOs can create the necessary trust in such utilities and Government of India can help provide soft financing through its many rural development programs. An energy self sufficient and hence prosperous rural India will be the first step in making us a developed nation. Similarly the technology mission for new crops for producing biodiesel also needs to be set up. Some of the crops like Jatropha and tree borne non-edible oilseeds like Neem and Karanja can be grown on waste and degraded lands. This will also help the country in land reclamation. With very little processing required for biodiesel, the farmers can get substantial remunerations by growing them. Food vs Fuel – Land use. Needs a through examination before embarking any scheme for Bio Diesel. For the technology missions to succeed, it is necessary that very intensive R & D is carried out in agriculture, materials and renewable energy technologies. Government of India should substantially increase the level of R & D funding in renewable energy and agricultural crops for liquid fuel production. Emerging areas of nanotechnology and biotechnology can play a vital role in creating novel renewable energy technologies. New materials for storing biogas in small cylinders, increasing the efficiency of photovoltaic solar cells, producing new thermoelectric materials which can efficiently convert heat directly into electricity are being researched and developed via nanotechnology all over the world. Similarly biotechnology can be used for increasing the efficiency of crops for liquid fuel and biomass production. It can also help develop organisms, which can increase the efficiency of ethanol fermentation and biogas production from their respective biomass.Rural India Development will get critical Mass from Taluka or District based projects. For empowering the Rural Economy & The Power Sector in General, our Commercial Energy Compsumption is already over stretched ( Table 3) and Renewables is the answer to these woes. YP Chawla 8 of 14 Scenarios- Commercial Energy Consumption Variation -Mn Tonnes of Eq. Oil (Mtoe)Table -3 Scenario 2001/2 2006/7 2011/12 2016/17 2021/22 2026/27 2031/32 BAU Business As 285 391 527 749 1046 1497 2123 Usual REN Aggressive 285 391 524 740 1033 1479 2097 Renewable Energy NUC High Nuclear 285 391 527 749 1030 1455 2061 Capacity EFF High 285 379 479 623 838 1131 1542 Efficiency HYB Hybrid 285 379 478 619 823 1101 1503 LG Low Growth 285 361 456 605 816 1134 1579 HG High Growth 285 435 638 962 1438 2186 3351 HHYB High Growth - 285 405 544 760 1087 1576 2320 Hybrid Source : Teri Powering India * Oil Consumption is measured in Mn. Tonnes : Other Fuels in Oil Equivalent Mn Tons Source: BP Statistical Review of World Energy -2008 Whether we provide Power to Rural or Urban or our Industrial & Transport Sector , we have at one end compulsions of Commercial Energy for Generating power , & at the other end we are faced with the Climatic Change pressures. YP Chawla 9 of 14 The solutions depicted above are not for Ultra Mega Plants for supply of Power to the distant Urban, Commercial or Industrial Clusters or the Railway Net work, but are well suited for Rural Sector. Though Solar Power on the Urban / Commercial Roof Tops is also becoming increasingly popular. Solutions for Rural Power will also meet the Compulsions of Climate Change: Concern about Climate Change has become so high that Austraila has banned Bottled Water A Rural town Bundanoon, in New South Wales in Australia has voted overwhelmingly to ban the sale of bottled water over concerns about its environmental impact.-may be the first community in the world to have such a ban. Water travelling to Sydney for botteling and brought back to Bundanoon, in New South Wales is consumption of Energy & hence has impact on Carbon generation. This Paper is restriced to Powering Rural Sector through Renewable Energy which itself provides Sustainabilty for Economic development & Growth through Green Energy which is thrust on us because of our social Responsibilty but more due to Developed economies for the distorsion in the Climat as per Figures 8, 9 &10 indicating rise in temperatures due to Carbon Generating technologies. Low Carbon Generation Technologies path for Sustainable Economic Growth: Though there is a pressure all round for India & China for capping the Carbon Emissions and the pressure is coming from the biggest defaulters of Carbon Generations. India may circumvent these pressures, but India on its own can take an early lead in adopting such technologies, which are costly at this stage , but large scale work on these technologies will help reducing the Costs. A 2 degrees celcius Cap above preindustrial levels at Major Economies Forum (MEF) at Italy – July ‘09 seem to be a political delusion. A 2 degree approach seems to have come from Nature Magazine – April ’09, and looks to be general guide. The Low Carbon trap could lead to Low Per Capita Growth, but we have to initiate action for Low Carbon technologies to deliver a safer world to our next generation. World Bank Development Report 2010 – draft, considers2 degree approach as very ambitious. YP Chawla 10 of 14 World’s Major Defaulters: Playing Double Standards (Fig 11) with Developing World (this section might soon go in for a change, as the subject is currently under dynamic discussions between India, USA & the developed World) India’s Position: India’s current industrial efforts are high carbon-intensive (three times as much per unit of GDP as the United States’) but our domestic environment compliance levels are poor.. Global Warming: We are aware that due to Climate Change a 2 degree Celcius increase in Global temprature , Maldives will disappear & a third of Bangaldesh will be under Water. Debates are on that when India has to act, on reaching the threshhold or before. Will it effect India’s development? Etc. For Renewable Enegy Technologies, CDMs are oftenlt propogated but cevaet is that CDM have a comburse some process as the process of establishing additionality, then its monitoring & verification is tedious. Two missions to combat climate change have been finalized in India – As per recent press reports (as at the time of writing this paper). These technologies go well with RETs for Rural Power. New Delhi, July 16 (IANS) India has finalised two of the eight missions under its National Action Plan on Climate Change (NAPCC), the Prime Minister's Special Envoy on Climate Change, said Shyam Saran. The missions are on solar energy and energy efficiency. Details of both missions would be published soon, Saran said, adding that the solar mission is "very ambitious and has a lot of emphasis on R&D". Saran said India's economic growth had already been decoupled from growth in energy use. "For the last few years, the economy has been growing at 8-9 percent per annum while energy use has been growing at less than four percent. India is not yet developed country with enough funds to embark upon the Costly Capital equipment for producing goods through low Carbon intensive processes. Renewable Power has been accorded importance in Europe. Parliament in Europe has ratified 20:20 – to be achived by the year 2020, that 20% Efficiency improvement in Economy & 20% Power to be sourced from Renewables. These are covering the important parameters that India’s two missions have adopted. "We have asked them to reduce their emissions by at least 40 percent, because science tells us that is the minimum required. And if we don't have commitments for the next 10 years, who will remember the commitments made for 2050? CEVEAT: R& D in Renewable Energy & Papers: There is a reveling fact that the quality of Indian research on renewable and clean energy has been deteriorating, -a CSIR study has found YP Chawla 11 of 14 This has serious implications for a rapidly developing nation such as India because it means indigenous green technology would be hard to come by. It also potentially ties the country down to imports, which are often expensive and have severe technology restrictions, especially with respect to intellectual property Although the number of re- search papers relating to coal, solar, hydrogen and fuel cells published by the country’s scientists has almost trebled between 1995 and 2007, citations of these, a key measure to gauge quality, have fallen precipitously “A highly cited paper, especially if it involves a broad subject area of research such as solar or hydrogen, usually means that it’s of good quality,” said Sujit Bhattacharya, a professor at Jawaharlal Nehru University and author of several studies on the quality of India’s research papers. “Conversely, a low citation count means it’s uninteresting on an international level.” Papers on Solar in 2007 : 730 Citations from these papers dipped from 200 in 1995 to less than 50 in 2007 for solar energy research; from50 to 10 in wind energy research; from 120 to 60 in bio- energy and from 175 to 50 in hydrogen research. The decline in coal-based technologies has been the sharpest—from 750 citations in 1995 to only 50 in 2007 Prodipto Ghosh, former environment secretary and an adviser at The Energy Research Institute, said that India’s plans to establish a green technology fund as part of its national action plan on climate change would help research. Ghosh also pointed out that high citations and good papers doesn’t necessarily mean much. “You need a good industry base to use that research.” Conclusions: To solve the Mega Watt Problems for Electrifyring Rural India, India has to take up Renewable Power Generation Technologies much more aggressively to meet its power needs and most of these technologies get integrated with the Rural Development and the Sustainable Growth of India using Green Path so that pressure on Climate Control is avoided while development of our Rural economy continues & reducing our dependence on Imported Fossil Fuels. Recommendations: • State Electricity Regulatory Commissions had initially determined tariff from various other non- conventional sources like wind power, co-generation power plant and bio mass power on cost plus basis, Solar PV may also be considered on the same basis & if the Power is fed at Rural Sector fiscal benefits that may compensate for extra efforts of developing a Rural Sector may be considered . YP Chawla 12 of 14 No such tariff determination can be carried out in respect of Solar power as the Solar power uses various technologies like Thin Film, Crystalline, Trackers etc., with wide varying cost and efficiency level of each technology. Hence it would may not be practically possible immediately come out with one single tariff parameter for Solar like in case of wind or biomass. Solar may thus be considered on Cost Plus basis initially. Preferential tariff based on the cost-plus approach for non firm RE- based projects during loan repayment period after which RE Project developers can be asked to compete. • Minimum level of Renewable Purchase Obligation (RPO) at 5% & to be increased progressively lines of National Action Plan on Climate Change; though the Indian Energy Sector has defined Renewable Energy Procurement Obligations (Fig 13), but there seem to be no deterent for its non fulfillment. Power Generation thru Renewable Energy for Rural Sector can meet these obligations. • A part of RPO may be reserved for RE resources in the region, such as solar PV and solar thermal, which are in the nascent stage of exploitation and technology involved has risks of stabalisation. • Facilitative framework for inter-State exchange of RE power and lower transmission Charges. • The NAPCC also indicates that a lot of R& D has to be done in India to reduce the Capital Costs in order to arrive at the reduced feed in tariff. • Generation Based Incentives (GBIs) may be considered as these are preferable to capital subsidies for promotion of RE technologies. (GBIs will be necessary if renewables, particularly Solar is to be promoted on the scale envisaged in NAPCC.) • GBIs should be announced upfront (re-lokked into whatever has been announced), which could be factored in the tariff to be set by ERCs. The Capital Cost, Cost of Funding, Re USD parity has upset all the calculations. • Replicate the success models from existing Projects by various States & Project Developers and that have positive impact on Rural economy • Working on the untapped opportunities to promote renewable energy for power generation for industrial applications. • Matching appropriate renewable energy technology with required energy services for specific industry is a challenge with supporting training and capacity building for manufacturers, local assembly, and maintenance of renewable energy technologies/systems. • National level REC mechanism to enable States to fulfill their RPOs fully or partly by purchasing RECs from other States which ‘procure’ renewable energy in excess of their RPOs.. • Promote renewable energy enterprise development by removing barriers impeding Renewable Energy use. • Contribution of Renewable Energy in terms of economic, social, ,environmental benefits & the Rural economy of Renewable Energy is to be monetised . YP Chawla 13 of 14 • Need to create a level playing field, through appropriate policies and regulatory enabling framework.(Although RET prices are decreasing through up scaling and technological evolution ) • Renewable Energy Policy Framework to offer a level playing field for promoting renewable energy for industrial applications including cogeneration which will add to to energy and climate security. • Adopt Clusters approach for Rural Sectors to achieve economies of scale for RE projects and provide for specific solutions to specific industry. • Though RET aspect not related to the Rural Economy, can be extended to Transportation sector being the major consumer of energy and railways as preferred mode of transport there are significant scope for use of bio-fuels in the railways. Bio-diesel can be used in medium speed diesel engines. Initial engine test bid and trails have shown promising results in use of biodiesel as alternative fuel for Diesel traction on Indian Railways. Optimization of the engine parameters are required for widespread use of Biodiesel on diesel locomotives, however raw material availability and favourable policy initiative are critical to success. • Biomass being the principal source of renewable energy in Rural Sector, there is an urgent need for development of MW Scale Advance Biomass Gasification technology, micro turbines etc by providing incentives to promoters and through soft loan grants • Proper policy framework to be in place which gives due consideration to all the inter- departmental issues for .Growing bio-fuels so that output would compete with food crops for water, land and capital and thereby increasing food prices • Solar energy for urban areas -Solar radiation, to be promoted agressively , for thermal as well as photovoltaic applications. Among solar thermal applications solar water heating systems provide a good option to be used in homes and large capacity SWHS for hotels, hospitals and industries. Similarly Solar Air Heating System can meet process heat requirements in many industries. Solar photovoltaic can be used for lighting and powering various electrical appliances. • New Solar technologies should be promoted Stand-alone (Off-grid) power plants: Electricity is used to charge a battery bank. This power is converted to AC for powering loads. • Grid-connected centralized systems for Rural Sector • Delivers electricity directly to the grid through inverter during sunshine hours. • Grid-connected distributed systems rovide power to grid-connected customers or directly to the electricity network. • Adoption of Public Private and Community Partnership • Public private partnership arrangement like Community Energy Service Provider which provides energy service for stand-alone solar systems and other sources to the users (communicates/institutions) through a service agreement, against payment of a tax. Such mechanism can work for decentralized village electrification based on diesel generating sets running on straight run Jatropha oil . Such projects offer a lot of learning and can serve as a model for electrifying other remote villages. YP Chawla 14 of 14 • Considering the vast majority of rural population in this part of the world and the need for improving the socio-economic condition of those areas, policy initiatives, and effective implementation plans would result in easy & effective penetration of some of the technologies like bio-gas plants, improved chulas, Solar Photovoltaic based pump with community level partnership. • Different policy measures to create an environmentally sustainable energy value chain in the Rural Sector , & to take on Policy Initiatives Driving the Growth of the Carbon Sequestration Market Opportunities for India in Carbon Market, through favourable investment climate, fiscal incentives, and creating a stable regulatory regime. The Government of India has put its whole hearted effort in taking Carbon market incentives and carbon financing can help in easy adoption of new and cleaner technologies, stimulate investors to invest in R&D to search for low carbon intensive opportunities. The Voluntary Carbon Market is coming up in a big way and renewable energy projects top the preference list of VER buyers. References: • National Energy Map for India: Technology Vision 2030- TERI • Update on Climate Control thru’ English Dailies. • Other References also zacknowledged appropriately : Disclaimer – While every effort has been to taken to ensure that the published information is authentic & reliable; and has been used by the author very successfully, the author or the company undertake no liability for any damage, accidents, financial loss or expenses arising from the this paper or from a different behaviour of the Renewables or Economy so described.