Haryana to tap green energy with pvt help

The government of Haryana is planning to turn to private players to overcome the power crisis in the state. The government is keen on both private and public-private-partnership for the generation of power through renewable energy sources.

The state government set the target of 500 Mw (that is 10 per cent of the present capacity of 5,000 Mw) under renewable energy power projects by 2012 in its policy notified in November 2005.

The government has decided to set up power plants under BOOT (built-operate-own-transfer) basis.

Under the new policy framework the projects under 5 Mw capacity are eligible for clearance from Hareda (Haryana Renewable Energy Development Authority) itself. A high-powered committee headed by the state chief secretary will grant clearances to larger capacity projects.

Hareda Director Sumita Misra told Business Standard that Haryana has a locational disadvantage for hydropower generation. "As thermal power generation is not a sustainable proposition, we assessed various alternative methods of power generation," she added.

The study reveals that the state has a production potential of 1,400 Mw power from biomass (an investment of Rs 4 crore/ Mw is required for biomass-based power generation plant).

The state has an estimated 100-150 Mw capacity for bagasse co-generation (investment of Rs 3.5 crore/Mw is needed for power generation plant). The state has 15 sugar mills so substantial inputs are available for such projects. Small hydro projects can only produce 45 Mw of power, the study says.

Wind energy is another option that has tremendous potential, according to Hareda. Haryana is situated amidst the foothills of the Shivaliks (Panchkula district) and the Aravali (Mahendergarh and Narnaul districts). The average wind speed in these parts is 12 to 22 km per hour (the ideal speed is 18 km per hour).

The latest technology of tapping wind energy needs windmills up to 50 m in height and is eminently viable in Haryana. The state would approach both Indian and foreign companies for the success of this venture, Misra said.

Four private players in Karnal and Rohtak have put up small bagasse-based power plants. Two units in Yamuna Nagar are into power generation based on biomass gasifier system as plywood waste is available in plenty in Yamuna Nagar.

The corporate sector in the state feels that this would give them some respite from unscheduled power cuts.

"We get power at the rate of Rs 11 per unit from captive generators, whereas the cost of biomass and bagasse based power is about Rs 2.50 per unit",said CB Goyal senior member of Haryana Chamber of Commerce and Industry.

But the enterprenuers face bottlenecks in the implimentation of the projects. "Thuogh the incentive of capital subsidy is a big cushion but at times the wait for financial help erodes the profitability of the project", said one of the investors who is waiting for the second installment of capital subsidy for nine months