Indian Power Sector

Research and development projects on production, storage and utilisation of hydrogen have been supported by the Ministry of New and Renewable Energy (MNRE) at various universities and institutions in the country. Use of hydrogen as fuel has been demonstrated in two, three and four wheelers and in stoves and stationary engines under these projects. Recently, blending of hydrogen in compressed natural gas and dispensing units have been established under MNRE project at R&D Centre of Indian Oil Corporation Limited (IOCL) at Faridabad and at IOCL CNG Station, New Delhi for demonstration vehicles.

The wind power potential in the country is estimated at about 48000 MW. Since early nineties, the Government has been promoting commercial grid connected wind power projects through private sector investment by providing fiscal incentives, such as accelerated depreciation, concessional import duty on certain components of wind electric generators, excise duty exemption, ten years tax holiday on income generated from wind power projects, and loan from Indian Renewable Energy Development Agency (IREDA) and other financial institutions. Technical support, including detailed wind resource assessment to identify further potential sites, is provided by Ministry Centre for Wind Energy Technology (C-WET), Chennai. This apart, preferential tariff is being provided to increase wind energy generation in the potential States. A target of 9,000 MW of wind power has been set for the 11th Plan period.A total wind power capacity of about 11,000 MW has been installed in the country so far.However, in order to broaden the investor base by attracting independent power producers and foreign direct investment companies to the wind sector, the Government is considering a scheme to provide Generation Based Incentive (GBI) over and above the tariff given by respective states, for the electricity fed into the grid by the wind turbines set up till the end of 11th plan period.

The Ministry for New and Renewable Energy has announced demonstration programme to support megawatt size grid interactive solar power generation projects for a total capacity of 50 MW in the country, based on solar photovoltaic and solar thermal technologies. Any registered company, including private company, is eligible to set up solar power projects on build, own and operate basis. Proposal from each project developer with a maximum aggregate capacity of 5 MW, either through a single project or multiple projects of a minimum capacity of 1 MW each, would be considered. A maximum of 10 MW capacity solar power generation projects are to be considered in a State. Projects approved by the Ministry under the schemes will be eligible to receive generation based incentive up to Rs.12 per kWh for solar photovoltaic power and Rs.10 per kWh for solar thermal power fed to the grid by the solar power project developers, after taking into account the tariff provided by the State Electricity Regulatory Commission and the utility. The incentive will be available for a maximum of ten years.$Under the scheme, projects for 25 MW capacity of solar PV power and 11 MW of solar thermal power have been found to be eligible to receive generation based incentive. These projects are from the States of Rajasthan (10 MW), Andhra Pradesh (7MW), Tamil Nadu (6 MW), West Bengal (6 MW), Chattisgarh (5 MW) and Punjab (2 MW).$Ministry is supporting installation of some solar thermal based air conditioning systems on demonstration basis. The data generated from such projects will also be helpful to assess their cost effectiveness