2. Talking about energy alternatives, it’s all in the wind: an analysis of how India needs to implement a second-generation reform to implement wind energy in the country. We all agree that renewable energy is needed for the future. The question now is how we will get this technology to work. Based on a detailed analysis of India’s wind programme, we have suggested an agenda for policy reform, including a reform of CDM for wind energy. We have recommended a programmatic CDM to optimise on mandatory quota and the differential feed-in tariff for green energy in the country.

Please see at http://www.downtoearth.org.in/section.asp?sec_id=9&foldername=20080815

For the editorial by Sunita Narain on the subject of technology learning, go to
http://downtoearth.org.in/editor.asp?foldername=20080831&filename=Editor&sec_id=2&sid=1

We also have a letter we have written to policy makers on the reform agenda; it is reproduced below. We will of course be perusing this matter with our government. But in the meantime, we will look forward to your comments and information.

3. Who moved my science? Science seems to have been the casualty in the study of the retreat of the Gangotri glacier, source of the Ganga. The state government had commissioned a study to an expert committee in 2006. The committee came out with a report in December 2007, which scientists said was dated and “full of flaws”.

Read on at http://downtoearth.org.in/full6.asp?foldername=20080831&filename=sci&sec_id=12&sid=1

4. More on changing climate at India’s national environment portal
The National Knowledge Commission and CSE have recently launched India’s national portal on environment. Among other things, the portal features special in-depth sections on subjects like climate change which provide the latest news and perspective that are critical for policy.

Check it out at http://www.indiaenvironmentportal.org.in.

Do also send us material that you would like included in the portal. We will soon put in a directory section on people working on climate change issues and in particular, on equity and justice-related concerns.

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Letter to the minister for new and renewable energy, Government of India (and many others) from Centre for Science and Environment, August 2008

Dear Shri Muttemwar,
Our review of wind energy in the country finds that there is an urgent need to review the current policies and incentive structures so that the business of wind gets serious about generating power, not just installing wind farms and reaping benefits of fiscal incentives.

Based on discussions with experts and industry insiders, we are suggesting the following agenda for policy reform in this sector. The key need is to move faster towards a generation based system of incentives, by increasing the preferential ‘green’ tariff paid to generate wind. But this use of green tariffs, already available under the Electricity Act and used by different states, will be inadequate, unless we also strengthen the role of the electricity and technology regulator in this sector. With this intervention and the creative and proactive use of credits available under the Clean Development Mechanism (CDM), we believe wind can become an important source of power in the country.

1. We need greater clarity on the ‘price’ of wind energy, including the price of capital and operation and maintenance. Given the high and expensive capital costs, it could well be argued that wind energy is not a profitable business, unless tariffs are high and supportive. On the other hand, it is in Tamil Nadu that the tariffs where tariffs are the lowest, but the growth and efficiency of wind power are the highest.
   
   
2. We also need to understand why the plant load factor of wind projects is so low. Is this because of lack of data on the actual performance of wind energy projects? Is it because of wind energy data, though available, does not reflect the variability of wind regimes? Or is it because we have sited the plants wrongly and that the technology being used, does not optimise the potential of the region? Clearly, this issue needs a careful review.
   
   
3. We need to discuss the need for a programmatic so that CDM can be used to pay a premium for green power. This will also demand changing the current rules, which require project proponents to be tested on the ‘additionality’ clause – to justify the financial viability of their project and why it would not be possible without CDM benefits. Our analysis shows that registered wind CDM projects add to roughly 1302 mw capacity. But if all projects in various stages of the CDM pipeline get registered, it would add to 4,150 mw, which is roughly half of India’s current installed capacity. We have also calculated that assuming a 20 per cent plant load factor, wind energy (at current CER rates) would get Rs 1.20 per unit. If this CDM benefit is added to the tariff, in states like Maharashtra and Rajasthan of Rs 3.50 and above, wind energy would get Rs 4.70 per unit. This provides an opportunity to use CDM to pay for wind energy, through a sectoral programme, which uses CERs to pay the additional premium on green energy.
   
   
4. It is clear that the renewable energy portfolio, under which power utilities have to purchase a certain proportion of their energy from green sources, has enormous potential. But its effective use will require work. Currently, nobody is responsible for collating information on how much green power is being bought and at what price. All information is scattered with the different state electricity regulators and is impossible to trace. We also need to ensure that the utilities are penalised if they fail to buy their green power quota and to find ways that the quota set by different states for green power can be optimised and even expanded, through the creative use of premium pricing for wind.
   
   
5. In addition, there is a need to ensure that local communities, on whose land wind energy is installed, must get better benefits. This can be in the form of higher rents or sharing from the lease of land as well as power supply guarantees from government and the company. Otherwise, land for wind will become more contentious and will destroy the programme.

We do believe these issues need to be discussed so that we can evolve the second-generation wind programme in the country, which aggressively pushes for a big role in energy security. But we must point out that this will not be possible, unless the issue of wind energy and its programme are discussed openly and frankly. We have found it very strange that most observers and insiders refused even to be named, when contacted for their views. Clearly, this is not good for the future of this green source.

Please do let us know if there is any clarification you require on these issues. We will look forward to hearing from you.

With regards

Yours cordially

CSE

NOTE: This is a monthly alert from Centre for Science and Environment / Down To Earth on recent developments on climate change issues in India. We track happening in policy circles and the actions being taken by different sectors -- industry, government and civil society.