C-2 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] cleaner source. The desirable thrust to rope in the sustainable source of energy demands a suitabl

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1 Article C-1 Renewable Energy in India: Study of Law and Policy Dr. Uday Shankar & Utpal K Raha** The quest for clean energy may be considered as panacea to energy crisis and adequate response to the concern of climate change. Exploration of energy through non-conventional sources is advocated for quite some time in order to mitigate the challenge of climate change and to overcome energy crisis in the era of growth and development. The effort to promote renewable energy requires supportive policy and legislative framework. In India, the beginning of a new century has witnessed phenomenal change in the legislative framework of law relating to electricity in order to meet the challenges of globalization and energy security. The change has also attempted to address the concern of cleaner energy and integration with conventional source of energy. The paper traces the history of renewable energy in India and explores the provisions relating to renewables in the statutory provision of electricity. Further, it also examines the policy initiatives undertaken to promote renewable energy. It highlights the feature of a Bill proposed for development and promotion of renewable energy. In order to strengthen the case of comprehensive legal structure for ensuring the desirable growth of the sector, the paper also examines law on renewable energy of select jurisdictions. In conclusion, it has been said the proposal of a Bill is step in the right direction and need to be translated into an Act so that tapping of renewable energy will lessen the dependency on environmentally - damaging source of energy. 1. Introduction In 2011, India becomes the fourth-largest energy consumer in the world after China, the United States, and Russia. In order to meet the energy requirement, India has been dependent upon import from other countries. On the one hand, overreliance on the import has been making dependent on foreign reserve and on the other hand adversely making an impact on environment. For addressing these concerns, there has been focus on exploration of renewable sources of energy so that energy requirement will be met from greener and * Dr. Uday Shankar, Assistant Professor, Rajiv Gandhi School of Intellectual Property Law, Indian Institute of Technology Kharagpur, uday@rgsoipl.iitkgp.ernet.in. * Utpal K Raha, Research Scholar, Rajiv Gandhi School of Intellectual Property Law, Indian Institute of Technology Kharagpur, utpalraha@gmail.com. 147

2 C-2 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] cleaner source. The desirable thrust to rope in the sustainable source of energy demands a suitable legal and policy framework in order to allow the players to feel motivated to contribute in the drive of energy independent nation. The paper traces the history of renewable energy, further examines the provisions in the law which deals with renewable energy and the policy measures undertaken by the successive government to promote renewable energy. The paper also compares the provisions on renewable energy in selected countries in order to advocates a suitable improvement in existing framework. The paper concludes with critical observation on the existing legal and policy framework on renewable energy and suggests a way forward. 2. Renewable Energy: Tracing the history In early 1970s, the sharp rise in the price of oil in the international market pressed alarming bell for the government regarding overdependence on the issue of energy security. 1 The government was compelled to revisit strategy on the sources of energy and decided to explore the area of non-conventional sources of energy at the domestic level. The initiative to undertake necessary research and development in the area of alternative sources of energy led to the formation of a Commission for Additional Sources of Energy in the Department of Science and Technology in the year Following year, the Department of Non-Conventional Energy Sources was set up as an independent body to undertake necessary measures in the area of alternate sources of energy. 3 Perhaps, the Indian government, is amongst a few one, who established converted a department on renewable energy to a full-fledged ministry after realizing the valuable utility of these sources in years to come at domestic as well as at international level. 4 The ministry has been renamed as the Ministry of New and Renewable Energy (MNRE) in 2006 and this ministry is considered as the nodal ministry in the promotion of the renewable energy in India. This was a very significant benchmark in the area of development of renewable energy in India. Prior to this, in the year 1987 another important national institution namely Indian Renewable Energy Development Agency (IRDA) was also established with the responsibility to finance the renewable energy project throughout the country. 5 Later, the agency was established at the state level to multiply the effort of the promotion of renewable energy at the state level Renewable Energy: Mapping of Legal and Policy Framework India professes a federal set up by entrusting responsibilities between central and state governments, individually or jointly. 7 The three lists in the Seventh Schedule of the Constitution comprehensively demarcate the boundary between the centre and states on the subject matter of legislation. The 1 Available on 2 Ibid. 3 Ibid. 4 Available on 5 Available on 6 latter on, State Renewable Energy Development Agency were also formed in State level with same responsibility in the promotion of the renewable energy sources within their regions, for example Orissa Renewable energy Development Agency or OREDA. 7 Dr. Chanchal Kumar, Federalism in India: A Critical Appraisal. 148

3 concurrent list of the Schedule indicates role of the state governments on the subject and also in case of requirement of uniformity on it at the national level allows the centre to intervene and to enjoy supremacy. 8 Electricity 9 is placed in the concurrent list or List III of the Seventh Schedule which empowers the law making authority of both the centre and the States to enact law on electricity. The regulation of Electricity started, from colonial period, when production and distribution of electricity was in the hand of private parties and available only in major cities and towns. 10 The first legislation on it was enacted in the year 1887 which provided for the protection of person and property from the risks incident to the supply and use of electricity for lighting and other purposes. 11 In the Electricity Act, 1910, 12 a comprehensive law was enacted which replaced the Electricity Act of 1903, laid down a basic regulatory framework for the electricity supply industry by introducing the provisions of grant of license for bulk supply 13 and for purchase of electrical undertakings by the state 14. The Act did not dwell upon the issue of non-conventional source of energy and dealt only with energy i.e., electrical energy. 15 Just after a year of independence, a new legislation on electricity was enacted with the mandate to ensure availability of energy in rural areas along with cities by creating State Renewable Energy in India: Study of Law and Policy C-3 For achieving energy security and increase in generation of renewable energy, there is a need to have a comprehensive new arrangement which shall deal with the issues of generation, transmission, grid connectivity and purchase obligations so that the agenda of renewable should be able to travel longer without the support of a structure meant for conventional source of energy Electricity Boards. 16 The Act also dealt with statutory powers and functions of Central Electricity Authority and provided for the rationalization of the production and supply of electricity in order to boost up the energy sector through Grid System. The Act also dealt with water-power whereby it allowed the Board to consider the installation of hydro-electric without negotiating the interest of irrigation, navigation and flood control. 17 The Electricity Regulatory Commission Act, 1998 sought to bring transparency, accountability and professionalism in the fixation of tariff 8 Seventh Schudle of the Constitution of India. 9 Entry 38 of List III of Seventh Schedule of the Constitution of India. 10 Anjali Garg, Vikas Gaba and J L Bajaj, Regulation in Practice, Impact of Tariff Orders on the Indian Electric Sector, TERI, 2008, p Act XIII of 1887, available on 12 Act No. 9 of Section 3, Part II of the Act dealt with Grant of licenses. 14 Section 6 of the Act dealt with purchase of Undertakings. 15 Section 2 (g) of the 1910 Act. 16 Act no. 54 of 1948, The Electricity (Supply) Act, Section 30 of the 1948 Act. 149

4 C-4 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] for meeting energy crisis. 18 This legislation has also created the Central Electricity Regulatory Commission to regulate the tariff of the central generating companies and other generating companies in the case of a composite scheme for generation and sale of electricity to two or more states. 19 It also provided for establishment of State Electricity Regulatory Commission, though optional, for the purpose of regulating the working of the licenses and others involved in the electricity sector in the state. 20 Notably, till this period, all the legislations were silent regarding clean energy. At this backdrop, the Electricity Act, 2003 may be considered as the legislation of utmost importance as it attempts to introduce renewable source of energy in the league of conventional source by inserting a few provisions dealing with issues of promotion and generation. 3.2 Electricity Act, 2003 The Electricity Act 2003 replaces the three existing legislations governing the power sector, namely Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commissions Act, The Act mandates that Regulatory Commissions shall regulate tariff and issue of licenses and that State Electricity Boards will no longer exist in the existing form and will be restructured into separate generation, transmission and distribution entities. Regulatory function has been taken away from the purview of the government. It also mandates licensee-free thermal generation, non-discriminatory open access of the transmission system and gradual implementation of open access in the distribution system which will pave way for creation of power market in India. 21 Various provisions of the Act focus on renewable energy by integrating the agenda of renewable energy with conventional energy. Section 3 (1) of the Act states that the Government of India shall, from time to time, prepare the National Electricity Policy and Tariff Policy, in consultation with the State Governments for developing the power system based on optimal utilisation of resources such as coal, natural gas, nuclear, hydro, and renewable sources of energy. In the area of renewable energy, the Central Government has been made responsible to prepare, publish and revise, in consultation with state governments, national policy for stand-alone systems for rural areas based on renewable and non-conventional energy sources. 22 The State Electricity Regulatory Commission is required to consider the promotion of co-generation and generation of electricity from sources of renewable energy while specifying the terms and conditions of the tariff. 23 Further, the Commission has also been entrusted with the functions, inter alia, to promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person. Specify, for purchase of electricity from 18 Act No. 14 of Chapter II, dealt with Central Electricity Regulatory Commission, and Chapter III, dealt with powers and functions of the Commission, of the Act of Chapter IV, dealt with State Electricity Regulatory Commission, and Chapter V, dealt with powers and functions of the Commission, of the Act of Dr. Subhesh C Bhattacharya, Review of the Electricity Act 2003 of India, CEPMLP, Dundee University, Nov., Section 4 of the Act. 23 Section 61 of the Act. 150

5 such sources, a percentage of the total electricity consumption in the area, from cogeneration and renewable sources of energy. 24 To meet the challenges in the emerging competitive environment, the Act promotes electricity generation from co-generation and renewable energy sources through following enabling provisions: The SERCs to specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee and to promote co-generation and generation of electricity through renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any persons. 25 These provisions ushered into a new progressive environment for the proponents of renewable energy. The Electricity Act of 2003 is the backbone of the legal renewable energy framework in India. It mandates State Electricity Regulatory Commissions to specify a Renewable Purchase Obligation (RPO) target on obligated entities, which include distribution licensees, open access consumers and captive consumers. The targets vary widely across states. In Maharashtra, the Maharashtra Electricity Regulatory Commission has set a target of 0.5% for solar and 8.5% for non-solar by For solar energy, India has set national targets through the Jawaharlal Nehru National Solar Mission. Phase I of the National Solar Mission ( ) aimed to commission 1000 MW of grid-connected solar power projects by Phase II ( ) and Phase 3 ( ) will continue supporting scale-up with a 2022 target of 2 GW of installed off-grid solar PV capacity and 20 Renewable Energy in India: Study of Law and Policy C-5 GW on-grid solar PV capacities. However, on the issues of percentage of renewable purchase certificate for the Commission, the Act has failed to set a time limit. The non-committal approach of power distribution companies in different states to procurement a certain amount of renewable power mulling the need of legally enforceable obligation to purchase of the energy from non-conventional sources National Electricity Policy 2005 As a mandate of the 2003 Act, the National Electricity Policy 2005 has been formulated for the development of power system based on optimal utilization of resources. 27 The National Electricity Policy, formulated by the Ministry of Power, in pursuance of the provisions of the Act, also stresses the need for the promotion of non-conventional energy sources. Para graph 5.12, Cogeneration and Non-Conventional Energy Sources, of the policy reads as non-conventional sources of energy being the most environment friendly there is an urgent need to promote generation of electricity based on such sources of energy. For this purpose, efforts need to be made to reduce the capital cost of projects based on non-conventional and renewable sources of energy. Cost of energy can also be reduced by promoting competition within such projects. At the same time, adequate promotional measures would also have to be taken for development of technologies and a sustained growth of these sources. Further, it specifies that progressively the share of electricity from non-conventional sources would need to be increased as prescribed by State 24 Section 81 of the Act. 25 Sec. 86 (1) (e) of the Act. 26 Available on 27 National Electricity Policy,

6 C-6 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] Electricity Regulatory Commissions. Such purchase by distribution companies shall be through competitive bidding process. Considering the fact that it will take some time before non-conventional technologies compete, in terms of cost, with conventional sources, the Commission may determine an appropriate differential in prices to promote these technologies. 3.4 Tariff Policy 2006 Pursuant to the Act, tariff policy has been formulated to obligate the purchase of renewable power for distribution companies. The State Electricity Commission is directed to fix certain percentages for the purchase. The Policy requires fixation by SERCs of a minimum percentage of RPO from such sources taking into account availability of such resources in the region and its impact on retail tariffs. Then the cost of renewable power at this stage is higher than the cost of power generated from the conventional energy sources. Consequently, the State Commission also determines Feed-in tariff in promoting renewable energy. Feed-in tariffs (FITs) are minimum prices at which REP must be purchased from the generating companies or private producers through contracts (power purchase agreements) with transmission or distribution utilities or with trading licensees 28. According to Gisele Schmid, although policy and fiscal measures also exist, FITs and RPOs constitute the backbone of the policy of a majority of States to promote REP. 29 The Tariff Policy also states that procurement of renewable power for future requirements shall be done through a competitive bidding process and in the long-term, renewable energy technologies would need to compete with other sources in terms of full costs. 30 To this effect, the MNRE brought out the guidelines and standard bidding documents for grid-connected renewable energy in December 2012 after several rounds of consultations with stakeholders. Advancing the key objectives of the Act, the guidelines stated that the power purchase costs constitute the largest cost element for distribution licensees. Competitive procurement of electricity by the distribution licensees is expected to reduce the overall cost of procurement of power and facilitate development of power markets. Internationally, competition in wholesale electricity markets has led to reduction in prices of electricity and in significant benefits for consumers. 31 While the allocation for solar has already been done through competitive bidding under the National Solar Mission and state solar policies, these guidelines seek to also cover all other renewable energy sources, such as wind, small hydro, geothermal, biomass, tidal, etc. The guidelines seek to create competition in the grid-connected renewable energy sector, bring transparency and fairness in allocation, reduce information asymmetries among bidders, bring standardization, and hence reduce ambiguity in the whole process of project allocation Gisele Schmid The development of renewable energy power in India: Which policies have been effective? 29 Ibid. 30 Para 6.4 of the Policy guidelines_tariff_grid_re.pdf. 32 P R Krithika and Siddha Mahajan, Background paper Governance of renewable energy in India: Issues and challenges, March 2014, TERI-NFA Working Paper Series No.14, available on 152

7 For the implementation of the renewable power procurement obligation the Act provides specific provision. In case the obligated entities (the utilities which are bound to purchase certain amount of electricity from renewable power project mentioned above) if fails to oblige to meet RPO they are subjected to the liability determined by the concerned State Commission under Section 142 of the Electricity Act, Rural Electricity Policy, 2006 Electricity Act, 2003 imposes an obligation on the governments to supply electricity to all areas which covers the rural areas also. 34 In addition to this stand alone power generation and distribution system has been freed from the licensing in the rural areas (including those based on renewable sources of energy and non-conventional sources of energy). 35 Finally section 5 of the Act mandates for the formulation of a National Rural Electrification Policy to develop and manage rural distribution networks utilizing local institutions. In pursuance of these provisions the Rural Electricity Policy, 2006 came into light. The Policy has been formulated for the purpose of appropriate and optimal Renewable Energy in India: Study of Law and Policy C-7 utilization of natural sources of energy which includes renewable sources of energy such as solar, wind, biomass, small hydro, geo-thermal, tidal etc. to make available reliable supply of electricity to each and every household. Accordingly, the Policy encourages using isolated lighting technologies like solar photovoltaic in any rural areas where off-grid or stand alone system of electrification is not feasible. In addition to this the Policy promotes decentralizes distributed generation facilities together with local distribution network base on renewable energy sources resources. The implementation of the Policy is largely depends on a Yojana and a corporation. The Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) is a Central Government programme which has been launched to electrifying all un-electrified villages/un-electrified hamlets and providing access to electricity to all households. Rural Electrification Corporation Limited (REC) under the Ministry of Power is the nodal agency for the purpose of financing and co-coordinating of the electrification programme. 33 In case any complaint is filed before the Appropriate Commission by any person or if that Commission is satisfied that any person has contravened any of the provisions of this Act or the rules or regulations made there under, or any direction issued by the Commission, the Appropriate Commission may after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed one lakh rupees for each contravention and in case of continuing failure with an additional penalty which may extend to six thousand rupees for every day during which the failure continues after contravention of the first such direction. 34 Section 6 of the Electricity Act, Section 4 of the Electricity Act,

8 C-8 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] 4.1 Renewable energy scenario in India According to the Annual Report , published by Ministry of New and Renewable Energy total installed power capacity in India is (MW). Individual sharing of power from different sources indicated in the following Chart. If we look back during 10th and 11th Plan the Ministry of New and Renewable Energy has targeted around MW of power from different sources of renewable energy like wind, bio power and hydro power. This amount of power was only 10% of the total energy requirement in India 36. It was thought that the wind energy source could contribute 50% of the power i.e. 5000MW. The rest 5000MW was expected to come from bio power (3000 MW) and hydro power (2000 MW). It may be noted that these days contribution from solar energy sources was almost nil. Gradually, solar energy also got special importance as India is bestowed with solar energy. In 2009 total renewable power installed capacity was about 14,400 MW which includes only 2 MW of solar power. During this period the National Action Plan on Climate Change (NAPCC) 37 came into light in response to the global threat of climate. The Plan consists of eight Missions including National Solar Mission with a vision to make India as a self dependent country in relation to energy. 38 Then in 2010 the Jawaharlal Nehru National Solar Mission (JNNSM) is launched. Now the 36 Ministry of New and Renewable Energy, Annual Report The National Action Plan on Climate Change (NAPCC) was published on 30th June 2008 by the Prime Minister s Council on Climate Change. The Plan speaks about 8 missions. The missions are conducive to the stainable growth of India. 38 On the occasion of the release of the National Action Plan on Climate Change (NAPCC) the then Prime Minister of India says that: Our vision is to make India s economic development energy-efficient. Over a period of time, we must pioneer a graduated shift from economic activity based on fossil fuels to one based on non-fossil fuels and from reliance on nonrenewable and depleting sources of energy to renewable sources of energy. 154

9 government policies are really encouraging to the solar power generators. For example in recent time, the Government of India has dropped the idea of imposing antidumping duty on imported solar cell. Imposition of antidumping duty could have been an obstacle on the way on the availability of solar panel to the solar energy power generators. However, for the success of the national solar mission, the solar power generating projects in the country must have the required solar panel to such projects. At this moment the government s priority is to make the JNNSM successful. 39 At the end of March 2014, total solar power capacity in India is 2,647 MW 40. So it is obvious that in coming year the nation will get much renewable energy from the solar energy source. In addition, there is substantial development in the field of wind energy. Only this sector contributes 21,132 MW Renewable Energy in India: Study of Law and Policy C-9 to the total renewable power by the end of March The current energy generation from wind sources is more than four times in comparison to the amount of power targeted to be generated from wind energy in India ranks fifth amongst the wind-energy-producing countries of the world after USA, China, Germany and Spain 41. At the end of March 2014, the total renewable power installed capacity has reached to 31,702 MW 42. Out of which over 67% is covered by the wind energy. At the same time the share of other renewable energy sources are Biomass power (4,013 MW), Small hydro power (3,804 MW), and Urban & Industrial Waste (106.6 MW). So, in 2009, the renewable share form solar energy was only 2MW now at the beginning of the 2014 the share reaches to 2,647MW. 39 The said Mission s target is to generate gird connected electricity of 20000MW and 2000MW off-grid power from solar energy by Ministry of New and Renewable Energy, Annual Report 41 Available at 42 Supra note

10 C-10 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] Further, the ministry is targeting to achieve MW of power generating capacity from renewable energy at the end of 2017, while the total power generating capacity in India may reach MW i.e. now the ministry is targeting 19.30% of the total energy mix in India. The said Ministry also a target to share 9% electricity mix with the total electricity in India by the end of this period Recent development in the field of renewable energy in India As mentioned above that India has dropped the idea of imposing the antidumping duty on the imported solar panel, now the county is planning to achieve 100GW of solar installation capacity by the year At present our national solar installation capacity is about 3GW. It is expected that 40GW will come from rooftop solar power generation and the rest 60GW will be generated from large and medium scale grid connected projects 43. According to energy expert, the said plan is ambitious still not impossible as the vast country like India where there is a possibility of adding 40GW of power from residential rooftop units 44. The amendment to the Electricity Act, 2003 is proposed to introduce dedicated policy for the promotion of renewable energy. The said amendment also proposes to introduce the Renewable Generation Obligation (RGO). The RGO talks that it will be compulsory for thermal power producers to generate electricity through renewable 45. It has also introduced stricter penalties for failing to meet renewable purchase obligation (RPO) and RGO or any other compliance provided by the Act through the amendment in section 142 of the Act. The Act provided for the penalties ranging from 5 to 15 Lakh for breach of the RPO. In the amendment, it is proposed to enhance the penalty by increasing it to the range of 10 Lakh to 1 Crore in case of non-compliance of RPO or RGO. 4.3 The Compulsory Promotion, Utilisation, Supply and Access of Renew-able Energy Bill, : India, being a party to the Kyoto Protocol and part of UN Resolution A/RES/58/ that binds its signatory for sustainable development and to strengthen the commitment for the exploitation of renewable energy, proposes a bill on harnessing non-conventional sources of energy for mitigating the challenge of climate change and greener earth. 48 The Bill addresses range of issues like enhancement of energy efficiency and research, promotion, development and increased use of new and renewable forms of energy throughout the nation with the help of advanced and innovative environmentally sound technologies. In order to implement these, the Bill provides for a comprehensive renewable policy 43 Available on 44 Amitava Sinha, The Indian Express, New Delhi, 6th January, 2015, also available at indianexpress.com/article/india/india-others/indias-solar-dream-fuelled-by-global-trends. 45 Available at Renewable-Energy-Generation/2014/12/21/article ece. 46 Available at 47 Available at 48 The Compulsory Promotion, Utilisation, Supply and Access of Renewable Energy Bill, 2014, the copy of thre bill available at Supra

11 (National Renewable Energy Policy) for the country to counter obstacles to desirable growth of the renewable energy industry in India (for example, lack of private financing, enforcement and weak compliance measures for renewable purchase obligation etc). In addition to this the policy must stipulate national renewable energy targets in terms of total renewable energy generation for the next 20 years with 5 yearly break-up of the targets with a mechanism of annual review by experts. Further, the Bill provides for a constitution of National Committee on Renewable Energy to look into and advice the government in all related matters including the issues arising in course of implementation of the provisions of the Bill. The members of the committee are to be drawn from academic, administrative and judicial field to coordinate all the mechanism involved in the promotion of renewable energy in India. The said Bill proposes to introduce, in compliance with the Electricity (Amendment) Bill, 2014 mentioned above, Renewable Generation Obligation (RGO) which mandates thermal power producers to generate electricity through renewable 49. The obligated entities are required to meet renewable purchase obligation (RPO) with strict compliance. It specifies that RPO shall be fixed at 5% and these entities are required to fill the Renewable Energy in India: Study of Law and Policy C-11 target either from the State within or through Renewable Energy Certificate. On financial support, the Bill refers adequate funding options, incentives and financing means on the part of the Governments for renewable energy projects to attract private sector investments. Private companies are brought under an obligation to contribute in the promotion of renewable energy through various means like renewable purchase, linking Corporate Social Responsibility spending to renewable energy installation, purchase of RECs, captive generation. In addition to this the Bill also focused on the promotion of renewable energy in rural India. 5. Law and Policies on Renewable Energy in Selected Jurisdictions: The thrust on renewable energy has been widening world-wide due to pressing need of cleaner and sustainable sources of energy. Therefore, there is an effort to segregate the issue of renewable energy from conventional sources of energy in terms of legislative framework has been witnessed. This section highlights the salient features of the legislative framework on renewable energy of different countries of the world. In China the approach towards the renewable energy promotion is target oriented and specific 50. The law gives importance to appropriate implementation 49 Available on Renewable-Energy-Generation/2014/12/21/article ece 50 Renewable Energy Law of the People s Republic of China The said law has been amended and the Renewable Energy Law of the People s Republic of China 2009 talks about the protective full-amount acquisition system. The amended law on this topic made significant changes in promotion and implementation of renewable energy. The most important change is in Article 14. It provides with the proportion of renewable power to be generated in respect of total power generation along with the provision of implementation of that by the authorities within a given period of time accordingly. So according to this law the renewable energy generators will have to follow some standard and quantum of power generation target in a given time limit. Then the Grid Enterprise will have to consume the whole amount of power generated from renewable sources with its jurisdiction. 157

12 C-12 Energy Law Reports (ELR) [Vol. 4, Part 1, 2015] of renewable energy plan within the time frame according to the target. It has become mandatory for all grid enterprises to purchase the whole quantum of power generated from renewable energy projects. Another notable factor is that the renewable energy projects are also bound to maintain a certain standard and quantum of power is to be generated within specified period of time. The Bio-fuel Act of Philippine 51 specifically prescribes for both the civil and criminal liability against the breach of the mandatory distribution of bio-fuel (in this country the oil companies are required to distribute certain quantum of bio-fuel, i. e. 5% of the whole quantum of oil distributed by an oil company must come from bio-fuel). On the other hand in India, there is no law on the compulsory distribution of bio-fuel. So in case of bio-fuel promotion the oil companies are not legally bound to distribute bio-fuel. There is only a Government Notification 52. On the basis the proposal made by MNRE (Ministry of New and Renewable Energy) on pricing of ethanol for ethanol blending with petroleum, the Cabinet Committee on Economic Affair (CCEA) has directed the Ministry of Petroleum & Natural Gas to issue a Gazette Notification for implementation of 5% mandatory ethanol blending with petrol across the country. In India, prescribing for the 5% bio-ethanol blending by the oil companies. This notification is not enforceable. In the same way in Czech Republic there is an institute called Inspectorate 53 which determines and imposes fine on the obligated entities in case of their (obligated entities) failure to meet the renewable power purchase obligation. There are two Inspectorates namely, Territorial Inspectorate and Central Inspectorate. The determination of the Territorial Inspectorate is appealable to the Central Inspectorate. In case of Germany the country is already in advanced level of development in the promotion of renewable energy. In Germany the target of the renewable energy mix with the total electricity energy is 35% by the year 2020 while by this time India has a target of only 15% renewable energy mix. In India the responsibility for the arrangement of the grid connectivity is rest on the renewable power generators while in Germany the same responsibility is imposed on the 51 Available at 52 On the basis the proposal made by MNRE (Ministry of New and Renewable Energy) on pricing of ethanol for ethanol blending with petroleum, the Cabinet Committee on Economic Affair (CCEA) has directed the Ministry of Petroleum & Natural Gas to issue a Gazette Notification for implementation of 5% mandatory ethanol blending with petrol across the country. The said Notification came into light on 02/01/2013 and it says as under: The Central Government hereby directs that the Oil Marketing Companies shall sell Ethanolblended-petrol with percentage of ethanol up to ten percent and as per the Bureau of Indian Standard Specification to achieve five per cent ethanol blending across the Country as a whole So the Oil Marketing Companies may blend ethanol up to 10% with the petroleum. Then the target is to achieve at least 5% ethanol blending with petroleum by Unfortunately only 2% of the ethanol blending with petroleum has been achieved. Still the government is planning to the review of the Per cent of ethanol blending and to increase it up to 10% in the year Act of 31 March 2005 on the promotion of electricity production from renewable energy sources and amending certain act (Act on Promotion of Use of Renewable Sources) 158

13 Grid Operators. The grid operators are also liable to purchase the power generated by such projects. Proper documentation, publication and transparency in the field of renewable energy have been acquired much importance through the EEG Act, 2012 in Germany. Now the EEG Act, 2014 has come into force. Under this Act, renewable power projects are required to sell the power generated by them directly to the purchase of power. The Renewable Energy Heating Act came into force in 2009 in Germany which states that certain percentages of required heat for the building premises must come from renewable energy sources (such as solar collectors, a heat pump, or a wood-fired boiler). Conclusion: The establishment of an independent ministry for the promotion of renewable energy reflects the importance attached to the cleaner sources of energy. Electricity Act, 2003 enacted to cope up with the demand of globalization and need of energy security has given fair treatment to the cause of renewable energy. Various provisions of the Act touch upon the issue Renewable Energy in India: Study of Law and Policy C-13 of promotion and generation of cleaner source of energy. Notwithstanding the provisions, it has not made appropriate influence in the advancement of non-conventional energy as it still contributes negligible proportion in the energy pool of the country, although having immense potential to make secure on energy front. The regulatory authorities, which are entrusted to maintain competition and sustenance in the sector of conventional energy, have also been empowered to give necessary drive to the agenda of renewable energy. For achieving energy security and increase in generation of renewable energy, there is a need to have a comprehensive new arrangement which shall deal with the issues of generation, transmission, grid connectivity and purchase obligations so that the agenda of renewable should be able to travel longer without the support of a structure meant for conventional source of energy. The proposed Bill is an attempt in the right direction for promoting the generation and use of renewable energy in a bigger way so that energy based on depleting sources will be getting a suitable replacement for better mankind. 159