Government to make purchase of renewable power by utilities mandatory

The government will insist on mandatory use of the renewable energy purchase obligation by utilities backed by a preferential tariff to ramp up capacity of grid-connected solar power generation to 1000 MW within three years (by 2013) and an additional 3000 MW by 2017.

Stating this at a function in New Delhi, minister for new and renewable energy Dr Farooq Abdullah said this capacity can be more than doubled - reaching 10,000 MW or more installed power by 2017, depending upon the enhanced and enabled international finance and technology transfer.

The Jawaharlal Nehru National Solar Mission has set a 2022 target of 20,000 MW or more of renewable power production, which will be dependent on the 'learning' of the first two phases, which if successful, could lead to conditions of grid-competitive solar power.

The transition could be appropriately upscaled, based on availability of international finance and technology, the minister added.

Dr Abdullah unveiled the guidelines for off-grid (photovoltaic and thermal) and decentralised solar applications and rooftop and other small solar power plants.

He said his ministry, in its facilitative role, has created an enabling ecosystem for promoting newer business models, technical as well as market innovations as also for promoting basic and applied research and it is for the entrepreneurs and stakeholders to rise to the challenge.