Bookmark and Share

Power Transmission for Renewable Energy in India to be Funded by Coal Tax

0 Comment

India may uses the planned $500 million to $1 Billion in Coal Taxes it expects to generate every year to build transmission lines for  renewable energy.Note one of the main impediments for renewable energy is the lack of transmission capability on part of utilities to move clean energy from remote areas to urban demand centres.USA faces an acute problem in this regard and faces a massive debate on how to fund the power grid from windy areas to cities.India too faces a problem in this regard as renewable energy plants mainly wind and solar are to built in remote locations.Note India’s Power Grid is very inadequate as large parts of the country lack electricity due to lack of distribution networks.

According to CERC, the Coal Tax which was mooted last year as a Rs 50 ton tax on coal may be used to build these power lines. Note India is project edto more than treble its alternative energy capacity from 18.5 GW to more than 68 GW in the next decade.This will require investments in the power grid as well as encourage states to set up renewable energy capacities.

India’s $555 Million Coal Tax May Fund Electricity Lines

India may use part of the 25 billion rupees ($555 million) it raises this year with a coal tax to fund new electricity-transmission lines for helping distribute power from clean energy projects.

The Finance Ministry is considering a plan to give the money to states that don’t have the infrastructure to move the power from planned renewable-energy plants, said Pramod Deo, chairman of the Central Electricity Regulatory Commission.

“It would provide viability funding to those states” to extend their transmission networks to solar plants, wind farms and other clean-energy projects being built, Deo said from New Delhi in a telephone interview on Feb 18.

India took its first step to charge companies for fossil fuel pollution with a tax on coal, lignite and peat that took effect on July 1. The levy is expected to raise 25 billion rupees in the first year for clean energy projects, Environment Minister Jairam Ramesh said at the time.


Abhishek Shah

No Responses so far | Have Your Say!