The Central Electricity Regulatory Commission (CERC) addressed that all power state utilities in the country will have to buy at minimum five percent of their grid purchase from renewable energy sources from 2009-10 onwards and 15 percent by 2020. There will be one per cent raise in the purchase of renewable energy for every year for the coming 10 years

Presently 20 state electrical energy regulative commissions (SERCs) have already determined the percentage of energy that has to be bought from renewable sources. While Karnataka and Tamil Nadu are presently purchasing 10 per cent of their grid purchase from renewable sources, Maharashtra has attained four percent target.

The ministry of new and renewable energy is also undertaking a feasibility study for introducing renewable energy certificates, which will be valid for one year and it can be traded through the power exchanges. One certificate will be equal to 1 Mw of renewable energy generated. The certificates can be traded to attain the mandatory targets of renewable energy purchase. In addition, the ministry is thinking of introducing separate certificate for solar energy

While the minimum purchase standard will be fixed, the new system is likely come into position from April 2010, and it will be bought by those states which are confronting deficit presently.

Source: Energy Business Daily