This chapter explores the institutional and financial aspects of renewables, especially in large scale. While cheaper is better is a starting point, a few of the questions that frame recommendations are how much should support mechanisms play a role, and in what form are they most effective. Operational improvements are an easy starting point, and that includes coordination with the grid so that renewable energy is never wasted (curtailed because the system couldn’t handle it), in addition to better forecasting. Given the capital intensive nature of renewables (with nearly but not quite zero operating costs), cheap financing is a vital need – this links to risk management for renewables projects. There also need to be improvements in Renewable Portfolio Obligations and other support mechanisms such as RECs (Renewable Energy Certificates) that balance generator needs with buyer (utility) constraints. At a big picture level, coordinated planning and even an integrated National Mission for Sustainability (instead of silos of National Solar, Wind, Efficiency, etc. Missions) can improve broader electricity sustainability in India.
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This chapter is a part of Brookings India’s edited book, “Blowing Hard or Shining Bright? Making Renewable Power Sustainable in India” To view the preface and table of contents, click here.
Anish De is as a Partner at KPMG, heading Strategy and Operations for the Infrastructure Sectors, with more than 20 years of extensive work experience in energy (Power, Renewable Energy, Smart Grids, Oil & Gas). He specializes in areas of policy and regulation, reform & restructuring, organizational transformation, technology integration, institutional strengthening and capacity development in the power sector.