Thursday, November 18, 2010

Springing Renewable Energy- A Call for Policy Change or Lifestyle Requirement?

The Industrial Revolution in eighteenth century started with the discovery of fossil fuel, now it is time for a ‘New Renaissance’ with Sustainable Renewable Energy that would form the crux of developing India. We require energy for economic growth and job creation. To achieve Millennium Development goals by 2015 and sustainable clean energy by 2030 an integrated approach to energy is essential for which we need to focus on not just consumption but also on conservation. So far the concentration has been on profit made from energy consumption but now the focus has to be on energy saving to make profit. For this, effort has to be made on capacity building for energy saving inclusive of market requirements.


Women in rural areas even today use traditional fuels and technology with poor ventilation, low efficiency that has serious health hazards. Sustainable Development department (SD) and Food and Agriculture Organization of the United Nations (FAO) observe that in rural India, agriculture and allied industrial sectors employ as much as 89.5% of the total female labour. Women's work is getting harder and more time-consuming due to ecological degradation. The Indian population, particularly the rural, is highly dependent upon forest resources. Fuel wood contributes 84% of the total household energy consumption (UNDP, 1997). There are 66.5 million tribals in India and with few exceptions; the majority of them are forest dwellers (FAO, 1997). Unfortunately, forests are deteriorating massively due to the use of traditional fuels in rural households. Alternative sources of energy provide a feasible solution. Wind power, active and passive solar systems, geothermal energy, and biomass are examples of renewable or alternative energy sources. In remote villages, the challenge to set up an alternative energy support grid persists due to lack of availability of financial support. In such a situation the question arises- how do the government policies affect this situation and how can private sector contribute to it?

Although such alternative sources make up a small fraction of total energy production today, their share is growing. For promoting the potential of bio-energy – one of the most viable renewable energy options for India- the most important beginning would be to include bio-energy friendly policies and facilitating adoption of bio-energy in industry and other sectors. Collaboration with research and academic institutions on joint projects in bio-energy can help take research and development further. Policy makers, financial institutions and development industry can serve as the one point expert source on bio-energy for creating a strong network of alliances with government, research and academic institutions, industries, technology centers and experts across the globe to facilitate cutting edge solutions in bio-energy.


Anouj Mehta, ADB Representative, explains the financial aspect of bio-gas and stresses that it should be treated as business and not charity. There should be incentives for bio-gas power, relief of VAT and other taxes etc. He also suggested the subsidy could be provided for bio-gas energy. Mr.Suresh Rege from Mailhem Engineers, Pune, India also strongly recommended that policy should drive technology, but many a times it tries to follow development. For example he stated bio-gas production from KVIC model for years. Hence he argued that policies need to bring best and appropriate technology for higher capacities to produce efficient power generation. He stressed that there must be special incentives provided for better policy making. He raised the question that is subsidy the right policy? Is it for promoting the concept or for the project cost reduction? What should be areas for subsidy- capital expenditure or maintenance and operation? When to give subsidy- on purchase, on completion, on continuation and regular efficient utilization? Who to give the subsidy- financial promoter or technical provider? What should be the amount for subsidy- conservative or bold/progressive while giving subsidy? Mr.Rege concluded by asserting that it is important to give bold and pragmatic subsidy to ensure development. He explained that the meaning of ‘Mail+Hem’ in Sanskrit is waste converted to gold. Their idea is based upon the practice of converting organic waste into useful energy- bio-gas.

In cities canteen waste, animal waste and agro wastes are converted into bio-gas. This initiative is environment friendly, sustainable, economical and aesthetically inclined. The bio-energy production would put to use the waste from rural as well as urban centres and could help overcome bio-environmental issues. The challenge is to invest in initial capital for setting up the project. The aim has to be not just current profit but energy saving as an investment for future. Bio-energy production can reduce expenditure of fossil fuels and prevent health hazards caused by traditional cooking fuels like coal/firewood, especially for women in rural India. Household waste will contribute in the production of energy creating an effective waste-management and ensure a cleaner, greener and smokeless environment, with private sectors fulfilling their bit of social responsibility and with government policies that encourage such initiatives.