Surge in renewable power
India’s renewable energy capacity has increased to 42,850 megawatts as of April 30, 2016, up from 34,351 mw in March 2015, says the Central Electricity Authority.
The surge in renewable capacity marks a significant structural change in the energy landscape of India, which has emerged as the world’s fastest-growing renewable energy market with international companies participating in auctions for solar-powered projects.
Power, Coal and Renewable Energy Minister Piyush Goyal has set a Rs 6-lakh-crore target of building renewable energy plants. This includes 1-lakh mw of solar power capacity by 2022, five times the earlier target of adding 20,000 mw.
India will achieve 40 per cent cumulative electric power capacity from non-fossil fuel-based energy resources by 2030 with the help of transfer of technology and low-cost international finance, including from Green Climate Fund, according to power industry officials.
Hydropower capacity has increased only marginally from 40,531.41 mw in March 2014 to 41,267.42 mw in March 2015, to 42,783.43 mw at present.
“There is a perception that hydropower is neither environmentally friendly nor economically viable,” said Shirish S Garud, director, Energy Environment Technology Division at The Energy Resources Institute.
“India has good hydropower potential, but submersion is a big issue. Hydropower has become an activists’ target. Benefits have to be weighed against negative aspects,” the Economic Times quoted Garud as saying.
There are other hurdles as well. “Since water is a state subject, state governments’ cooperation is required,” said Yogesh Daruka, partner, advisory practice at PwC. “There have been land acquisition issues,” he said.
However, hydropower’s share has declined steeply from the mid-1960s, when it was over 45 per cent. By 2005, hydropower’s share of the energy mix had dropped to 26 per cent.
Only large dams are classified under hydropower. Small dams, with capacities up to 25 mw, come under the ambit of renewable energy. Small hydro capacity increased from 4025 mw at the end of March 2015 to 4273.47 mw at present. There is a proposal to increase the small dam size limit from 25 mw to 100 mw to encourage their growth, since that will make them eligible for tax benefits. fii-news.com
