Renewable energy newsletter -August 2012

Posted on September 1, 2012 by

August Highlights

Volume of REC traded till August 2012.jpgOff-grid Power: Off-grid renewable power projects using wind energy, biomass energy, hydro power and hybrid systems are being established in the country to meet the energy requirements of remote locations which are not likely to be electrified in the near future.

The need for off-grid Power: According to the International Energy Agency, about one third of India’s population lacks access to electricity. High cost associated with grid extension is the primary reason for lower electrification rates in rural India. Most of rural India is dependent on biomass for fulfilling its energy needs. However, burning biomass comes with several hazards to personal health and the environment.

In July this year, three of India’s regional power grids, the Northern, Eastern and North-eastern grids, collapsed due to overdrawal by States. This has brought additional attention to the need for reducing dependence on conventional sources of energy. Off-grid renewable energy applications present a viable alternative for mitigating the country’s energy risk in the face of fuel scarcity.

Renewable Energy Certificates for off-grid projects Falling cost of solar energy has stimulated many entrepreneurs who are trying to develop scalable and replicable models for deploying solar energy in various applications. Mera Gao Power is one such example. It operates micro grids by installing solar PV panels and then transmits energy to houses who pay about Rs. 40 to connect, with costs thereafter about Rs. 25 per week.

In a recent meeting of the Forum of Regulators, a new model for incorporating RECs to encourage off-grid energy generation was endorsed. It has been suggested to the CERC to modify existing regulations to incorporate off-grid installations. This can give a big impetus to off-grid installations in the country – we can expect many entrepreneurs taking interest in setting up off-grid projects. If this happens, we can hope to see the Gandhian model of self-reliance become a reality in the energy sector.

Traded Volume of RECs touches new High: The REC trade in August 2012 recorded the highest volume ever transacted in the REC Markets to date. At 273,893 certificates, the volume of Non-solar RECs traded was 14% higher than the previous high in June this year. Prices however dropped to Rs.1500/- with supply far outstripping demand.

Click here to read full Renewable Energy Newsletter Aug 2012