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Wednesday, December 24, 2014

Govt. sets target of doubling electricity generation to 2 trillion units in near future: Piyush Goyal

Renewed focus in Renewables, going up from 53 bn. units to 300 bn. units in 5 years 

Shri Piyush Goyal, Minister of State (IC) Power, Coal and New and Renewable Energy, said that the Government has set an ambitious target of doubling the aggregate electricity generation from 1 trillion units to 2 trillion units, in the near future. 

Mr. Goyal said that there will be a renewed focus in Renewables, going up from the current 53 bn. units to 300 bn. units in five years. He also called for the need to expeditiously resolve the issue of bankability of renewable energy projects. 

The Minister mentioned that after assuming office seven months back, his focus was on creating the right ecosystem and prioritise on leveraging the low hanging fruits. 

Giving an example, he said that in the aftermath of a poor monsoon, there was a shortfall in the country's hydro electricity generation, which was offset by ramping up of thermal power generation. 

For the three- month period of June-August 2014, thermal power generation saw an increase of 21%. This was result of focused attention given to thermal generation to compensate for expected reduction in hydro generation. 

With setting up of ambitious targets for CIL, notably the proposed objective of ramping up existing coal production by CIL to 1 billion ton, he suggested that there would be a surplus of coal in 2019. He envisaged private sector to contribute 0.5 BT. 

Mr. Goyal said that the amendment of Electricity Act 2003 is under deliberation and, there is an increased focus on Renewable Energy and bringing distribution reforms within the amended Electricity Act. 

Additionally, there is a proposal to incorporate some form of Generator Obligation for Thermal Plants to ensure that they have some percentage of RE in their portfolio along with the conventional power to bundle the supply options. He highlighted the necessity of putting a robust exchange rate hedging mechanism to ensure that industry does not suffer from volatilities of currency exchange rate. 

The Minister mentioned that there would be significant private sector participation in CIL's targeted 1 Billion ton production program. This would in the form of MDO (Mine Development Operator) in both existing mines, as well as more than 200 mines where mining is yet to commence. 

He suggested that the feed-in-tariff mechanism needs to be relooked in terms of its commercial viability and competitiveness. 

On demand side management, he mentioned that more than 500,000 street lights in Delhi would be replaced with LEDs in coming months. Over a time frame of 2.5 years all major cities in India would have LED based public lighting. 

Mr. Goyal said that the stalled work on Teesta valley dam is expected to be resolved in about a month. Similarly, the problems with Subansiri hydro project are expected to meet a positive agreement among associated parties in a time frame of three months. The Minister stated that his focus is on streamlining the processes so that statutory clearances are not delayed and hence the time overruns and cost overruns can be avoided. 
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