Renewable Purchase Obligations Should be Strictly Enforced: NITI Aayog

Launched by Finance Minister Arun Jaitley, the document outlines a slew of measures to reform the energy sector of the country.

NITI Aayog recently published its latest strategy document ‘Strategy for New India @75’ in which it has recommended that renewable purchase obligations should be strictly enforced.

Launched by Finance Minister Arun Jaitley, the document outlines a slew of measures to reform the energy sector of the country.

The document, providing solution to the energy crisis in India’s rural hinterlands said, “Decentralized renewable energy in rural areas in conjunction with the discoms’ grid can offer reliability.”

Furthermore, the vision document also pitched for exploration of hybrid renewable energies such as Solar PV + biomass.

Talking about energy efficiency, the paper said that state designated agencies need to be more empowered and provided with adequate resources to implement EE related programmes.

There is a need to ensure greater participation of energy service companies (ESCOs) using appropriate financing models with a risk sharing mechanism, particularly by public sector banks, the document outlined.

The paper highlighted that it is necessary to have national level markets and regulations for balancing of power.

“Central level agencies like Central Electricity Regulatory Commission or National Load Despatch Centre should socialize the costs of balancing interstate transmission systems (ISTS) connected power plants, over the entire system, on the lines of the point of connection (PoC) or a similar mechanism,” the paper said.

Encouraging the use of solar pumps the paper mentioned that in Eastern India where groundwater utilization is hampered because of energy woes, solar pumps can offer a reliable solution.

It further added that in Western India, solar pumps with a buyback guarantee for surplus solar power can offer reliable daytime energy for irrigation and stable cash income as well act as an incentive to conserve power and water.