In order to achieve Narendra Modi’s policy of generating 100GW of renewable energy by 2019, the Indian government will revive the long-pending Renewable Energy Bill (the “Bill”) and set feed-in tariffs (FiT) schemes.
Modi aims to generate 10% of the country’s power requirement by renewables by 2020. To achieve this goal, legislation will be reviewed and made. The Bill seeks to plug the loopholes in the Electricity Act of 2012 and the Energy Conservation Act of 2001 as well as prompt development of renewable energy technology, reported Indiatoday. The draft proposes creating a National Authority on Renewable Energy (NARE) at the central government with similar authorities at local levels. In addition, NARE would involve setting a minimum national rate for FiT after consulting the state authorities and other experts. The draft law also gives preference to the transmission and distribution utilities to electricity produced by renewable resources when both conventional and renewable energy is available in competition.
National Renewable Energy Technology Commission is proposed to be established for R&D for renewable energy, according to the draft. The draft legislation places a binding legal obligation on all distribution licensees, captive and open-access consumers besides all kinds of consumers for purchase of a minimum percentage of electricity from renewable sources, noted Indiatoday.
"A legal instrument to achieve renewable energy targets has been more prevalent and successful being preferred by world over, especially by countries like the UK, Germany, Australia, Austria, China and Philippines," said Sanjay Upadhyay of the Enviro Legal Defence Firm.
Investment in renewable energy sector would be a part of the country’s priority plan. Domestic manufacturers and suppliers of renewables could be given 100% exemption from taxes and custom duties levied on the equipment, materials and other components.