Ministry of Power
The Ministry is responsible for:
- General Policy in the electricity sector and issues relating to energy policy;
- Matters relating to hydroelectric (except small/mini/micro hydro projects of and below 25 MW capacities) and thermal power, and the transmission system network;
- Research, development and technical assistance relating to hydro-electric and thermal power, and the transmission system.
- Administration of the Electricity Act, 2003, the Damodar Valley Corporation Act, 1948 and the Bhakra Beas Management Board as provided in the Punjab Re-organisation Act, 1966;
- Matters related to both the Central Electricity Authority and the Central Electricity Regulatory Commission;
- (a) Rural Electrification, (b) Power Schemes in Union Territories, and issues relating to power supply in the States and Union Territories;
- Administrative control of Public Sector Undertakings, Statutory and Autonomous Bodies functioning under the Ministry;
- Other Public Sector Enterprises in energy except projects specifically allotted to any other Ministry or Department;
- All matters concerning energy conservation and energy efficiency pertaining to the sector.
Ministry of New and Renewable Energy (MNRE, www.mnre.gov.in)
MNRE is the nodal Ministry of the government of India for all matters relating to new and renewable energy and the administrative ministry for policies and programs in this area. The Ministry itself is organised into several divisions dealing with different technologies and applications.
The programme of the ministry is largely implemented through State Nodal Agencies. All major States have set up energy agencies for the non-conventional energy programme.
Ministry of Coal
It is responsible for policies and strategies with respect to exploring and developing coal reserves, sanctioning important projects and deciding related issues.
Ministry of Oil and Gas
It has the overall responsibility of exploration and production of oil and gas, along with their refining, distribution and marketing, import, export, and conservation.
Planning commission or Niti Ayog
The Power and Energy, Energy Policy and Rural Energy Division of the Planning commission guides the energy policies of the country
Central Electricity Authority (CEA)
The CEA assists the Ministry of Power in all the technical and techno-economic matters.
Indian Renewable Energy Development Agency (IREDA)
The IREDA was established in 1987 as a non-banking financial company under the administrative control of the Ministry of Non-Conventional Energy Sources (MNES), to provide loans for renewable energy projects. Subsequently energy efficiency and energy conservation projects were added to its portfolio.
Bureau of Energy Efficiency (BEE)
The BEE, established under the Energy Conservation Act of 2001, has introduced labelling requirements and building codes to reduce the energy intensity of GDP growth. For instance, the Energy Conservation Building Code (ECBC) is aimed at maximising energy utilisation in commercial buildings, by using Leadership in Energy and Environmental Design (LEED) certification standards, and customising buildings based on location temperatures. The BEE is comprised of ministers from Central and State energy-related agencies. The BEE is working with key industries, including cement, aluminium, and paper and pulp, to establish voluntary EE practices. It is also drafting standards for energy-labelling, building codes, and certification programs, among other initiatives.
In February 2011, India’s Bureau of Energy Efficiency (BEE) adopted new quality standards for solid state lighting, a process greatly accelerated as a result of SEAD, facilitated technical exchange between BEE and the United States Department of Energy. These standards are in the process of being notified through the Bureau of Indian Standards. In March, India also launched new internationally harmonized efficiency labels for laptops, drawing from the Energy Star programme.
The government created the Central Electricity Regulatory Commission) vested with jurisdiction by incorporating the Electricity Laws (Amendment) Act 1998, to regulate the tariff of bulk electric power, i.e. the generation and inter-state transmission of power, with effect from May 15, 1999.
It has been followed by the institution of 24 other State Electricity Regulatory Commissions (SERCs) in the states, excepting Nagaland and Arunachal Pradesh, with the authority to decide intra-state transmission and distribution/retail tariffs. This step was a key outcome of process of reform in the power sector.
The Petroleum and Natural Gas Regulatory Board (PNGRB), was established in June 2007.
Regulations supporting the development of renewable energy in India are the Electricity Act of 2003 and the National Electricity Policy of 2005. The Electricity Act of 2003 stipulates purchase of a certain percentage of the power procurement by distribution utilities from renewable energy sources. Under this act, implementation of the renewable portfolio obligation (RPO) is to be guided by the regulatory provisions issued by the respective State Electricity Regulatory Commissions (SERCs). The National Electricity Policy of 2005 also mandates that the share of electricity from non-conventional sources has to be increased progressively. Several other incentives in the form of generation based incentives (GBI),feed-in-tariffs(FIT),depreciation benefits and tax incentives have also been introduced.
In March 2011, the Government of India launched the Renewable Energy Certificates (REC) – a market-based mechanism – to drive renewable energy development and spur further investments.
The CERC has passed regulations to promote growth in the renewable sector, such as the regulation on certificates for generation of RE, the regulation designating the National Load Dispatch Centre as the implementing agency, and regulations on renewable energy tariff-determination. The Indian administration has passed laws to promote renewable energy. The National Electricity Policy of 2005 and the Tariff Policy of 2006 promote RE investment by pricing it competitively with conventional energy. The Electricity Act of 2003 requires state electricity boards to facilitate the supply and distribution of RE, along with traditional electricity.
The CERC has notified tariff regulations for the determination of tariffs for RES projects. The regulations are formulated to promote the development of RE projects, to remove ambiguity on project returns, debt repayment assurance, etc. The regulations complement the National Action Plan on climate change, which specifies that minimum renewable purchase standards be set at 5% for total power purchases for FY10, and should be increased by 1% each year for ten years.
SERCs roles include tariff regulation and promotion of co-generation, and electricity generation from renewable.
Maintaining stable grid operation while increasing renewable power generation to meet renewable obligation quotas Although the central government intends to promote RE, its efforts are hampered by inconsistent implementation by the States and by the lack of a central RE law. Some States have set relatively high renewable portfolio standards (RPS – renewable energy targets), some have set low targets, and some have not yet set any targets. Enforcement could also be stronger. The co-existence of RPS schemes and feed-in tariffs needs to be well-managed. A misalignment of state targets with national objectives has also been identified as a key barrier, as well as the limited framework for regulation of inter-state renewable power transmission, based on resource availability.
