Environmental Engineering Reference
In-Depth Information
power generation capacity to be set up in the
country by 2020 (Ghosh et al.
2002
).
The “National Hydrogen Energy Road Map
(NHERM)” is a program in India initiated by the
National hydrogen energy board (NHEB) in
2003 and approved in 2006 for bridging the tech-
nological gaps in different areas of hydrogen
energy, including its production, storage, trans-
portation and delivery, applications, safety codes
and standards, and capacity building for the
period up to 2020 (WHEC
2008
). The Banaras
Hindu University (BHU), Varanasi; Murugappa
Chettiar Research Centre (MCRC), Chennai;
and Indian Institute of Technology (IIT),
Kharagpur are among the leading research
groups working on biological, biomass, and
other renewable energy routes to produce hydro-
gen. With R&D support from the MNRE, the
MCRC has demonstrated hydrogen production
in batch scale from distillery waste. The pilot
plant is able to produce up to 18,000 l of hydro-
gen per hour (EAI
2013
).
IPPs will also benefi t from this act, as they can
now sell power directly to consumers without any
compulsion to fi rst go through the SEBs. Hence,
this act will provide a conducive environment for
private investment in power generation and will
promote decentralized power generation and
distribution.
3.2
Tariff Policy, 2006
The Tariff Policy announced in January 2006
has the following provisions (Lalwani and
Singh
2010
):
1. Pursuant to provisions of section 86 (1) (e) of
the act, the appropriate commission shall fi x a
minimum percentage for purchase of energy
from such sources taking into account avail-
ability of such resources in the region and its
impact on retail tariffs.
2. It will take some time before nonconventional
technologies can compete with conventional
sources in terms of cost of electricity.
Therefore, procurement by distribution com-
panies shall be done at preferential tariffs
determined by the appropriate commission.
3. Such procurement by distribution licensees
for future requirements shall be done, as far as
possible, through competitive bidding process
under section 63 of the act within suppliers
offering energy from same type of noncon-
ventional sources.
4. The Central Commission should lay down
guidelines within 3 months for pricing non-
fi rm power, especially from nonconventional
sources, to be followed in cases where such
procurement is not through competitive
bidding.
3
Act and Policies Pertaining
to Power Distribution
and Tariffs
3.1
Impact of the Electricity
Act 2003
Table
1
shows the current status of renewable
energy in India. The passage of “The Electricity
Act 2003” has strengthened the process of reform
in the Indian power sector and has enabled com-
petition in the Indian power sector in bulk as well
as retail electricity supply, in phases. This act has
benefi tted industrial consumers, independent
power producers (IPPs), private utilities, and
power equipment providers.
Since the Act provides provisions for setting
up of captive power plants, industrial consumers
can now escape the ineffi ciencies of the State
Electricity Boards (SEBs). It also permits mer-
chant generating units to provide electricity
directly to industrial consumers. This provision
will expand generation and bridge the demand-
supply gap (
4
Conclusion
Energy security, economic growth, and envi-
ronment protection are the national energy
policy drivers of any country. The need to
boost the efforts for further development and
promotion of renewable energy sources has
been felt world over in light of high prices of
Search WWH ::
Custom Search