CEMENT TO SOLAR

Tanmay Maitra & OP Verma Birla Corporation Ltd, Corporate Office - Kolkata . Cement Division : Satna Unit: Satna Cement Works, Satna (MP)

Abstract
India has immense potential renewable energy sectors . Being tropical country, clear sun is available 300 days in half of the country with very high potential for solar power. India has very long coastal line which attracts wind farms in commercial scale. Agriculture covers above 80% of India`s GDP which creates possibility of Bio-fuel and biomass based power generation. North and North east Himalayan range invites hydro power plant . With the development in the country, several factors have started contributing to a sudden emphasis on the development and consumption of renewable energy. Firstly, the most important factor is warming and consequent environmental fallouts. Coal based thermal plants emits pollutants in the atmosphere which have cause irreparable damage to the fragile ecosystems. The requirement of energy cannot be practically reduced, so the only way out seems to reduce the dependence on the traditional sources of energy. This is where renewable energy scores as a viable option. Secondly major factor is the highly fluctuating nature of oil prices in the international markets. Most nations especially developing countries found their development plans completely thrown off-gear. Coal price also increased substantially linking with international oil price. Added to that coal scarcity to the newly build mega thermal power plants slowed down the future projects .

The focus was primarily the rural sector because of perhaps two major reasons: Firstly the requirement for power was substantially lower in the rural sector . Secondly, rural sectors demand for a consistent supply was also not too strict. By nature renewable energy is geography dependant, its development and use were both confined to the areas producing it. The generation and consumption were both localised in nature. Policy The nature and quantum of Renewable Energy obligation is specified by the State Government. Certain states have cast separate obligations for renewable energy from solar and from non solar sources. Who is Entitle for Renewal Purchase Obligation ???

Captive Power Plant which is producing for own will be liable for renewal energy obligation (RPO). Cement plants having CPP are liable for Renewal energy obligation. This obligation will also be applicable when power is being purchased through Indian Energy Exchange (IEX). Power taken directly from state electricity board is not covered under Renewal energy Obligation.

Price for Solar REC From 2012 to 2017 Floor Price `9,300 (155) Forbearance Price `13,400 (223) Cement Plants having Captive power plant and who are buying power through IEX are to fulfill Renewal Purchase obligation . Now most of cement unit has captive power plant must go for solar power plant . This article deal with how the Renewal Energy Obligation drives the profitable business opportunity by way of installation of solar power plant . Advantages : Power cost in India will keep on Increasing due to increase in fuel cost The installation cost of solar is reducing There will also indirect effect on PAT as the RE power is out of boundary limit There will also possibility for selling E- Certificate if our reduction target is fulfilled Solar Power will be profitable business in years to come.