Other Policy Instruments in India
Introduction
State level policies – A number of states have announced policy packages including banking, third party sale and buy-back, which have been outlined in the respective technology or programmes in renewable energy sector. Some states are also providing concessions or exemption in state sales tax. These rates vary widely from state to state and between different technologies. A number of states have also announced policies for the purchase and support of energy produced from various renewable energy sources.
Rationale
- Attract the investors and develop the renewable energy industry.
Basic elements of design
Depends on state’s renewable energy development plans and targets and to create more investor friendly environment.
Potential challenges
Industry engagement to understand their specific issues/concerns.
Third-party sales are constrained because of open access related issues.
Due to complexities in supply-demand management along with the renewable energy power, utilities do not want to have a long-term commitment for banking of power.
India experience
Non-uniformities on many issues across various states.
Outcomes have been mixed and vary from state to state.
