Transmission tariff for restructured Indian power sector with special consideration to promotion of renewable energy sources

Abstract

The electricity market is undergoing a tremendous transformation not only in India but throughout the world as it move towards a more competitive environment. The growing complexity of this transformation-price instability, an aging infrastructure, changing regulatory environments are coursing energy consumers and electric utility to take another look at the benefit of renewable generation. The combination of utility restructuring, technology evolution, recent environmental policies provide the bases for renewable to progress an important energy option in near future for India. Utilities restructuring-opens energy market, allowing the customers to choose energy providers, methods of delivery, and attendant services etc. Moreover, the market forces favor small modular power technology that comes from renewable option (i.e. Small hydro, wind, solar and biomass) and that can be installed quickly in response to market signals. India has unique renewable energy resources (RES) and development of country depends to a great extent on harnessing these sources. As conventional sources of energy pose significant threats to our current and future global security, environmental quality, health and social well being, so there is urgent need to promote renewable in present Indian restructured power sector in sustainable and eco-friendly manner. Preferential transmission tariff for renewable promotion along with other promotion policies plays a significant role in overall redevelopment of renewable energy sources. Hence current status, various issues, regulatory policies and incentives, special tariff for promotion of renewable energy sources in Indian restructured power sector are discussed in this paper. This will make renewable more attractive in the future competitive electricity market.