Solar power technology to get funded under National Fund

Posted on April 24, 2011 by

The 2010-11 budget had made provision for a fund to be created through a clean energy cess of Rs 50 per tonne of coal, lignite and peat. The National Clean Energy Fund (NCEF) has been created under MNRE to provide financial support for development of indigenous technologies in solar power. Globally, The decrease in prices and support from governments in Europe and China has helped solar sector achieve 40 per cent of RE investments in 2010 in these countries. The government hopes that the local research will help in reducing the final cost of producing electricity through tapping solar energy.

At an event organised by Forum for Advancement of Solar Thermal (FAST), CERC Chairman, Pramod Deo said “In the next five years, India would need 28,000 mw of renewable power, and wind energy would be a dominant source for it. But going forward, solar energy would play a vital role in achieving that target.”

In 2010-11, through coal cess, the government has collected more than Rs 3,000 crores. The fund is expected to cross Rs 6,500 crore next year. Significant part of these funds is expected to be used for supporting payment security mechanisms and R&D activities under the JNNSM (Jawaharlal Nehru National Solar Mission).

In 2010-11, India added 3,150 mw of renewable energy to the grid, with 2,000 MW from wind and just 40 mw of solar power. Coming year is expected to see addition of 250 MW from solar power.

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Posted in: Renewable Energy