Role of targeted policies in mainstreaming renewable energy in a resource constrained electricity system: A case study of Karnataka electricity system in India

Amrutha, AA and Balachandra, P and Mathirajan, M (2017) Role of targeted policies in mainstreaming renewable energy in a resource constrained electricity system: A case study of Karnataka electricity system in India. In: Energy Policy, 106 . pp. 48-58. ISSN 03014215

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Abstract

India is aggressively pursuing its renewable energy capacity expansion goals. Targeted policies such as Feed-in Tariff (FIT), Renewable Purchase Obligation (RPO) and Renewable Energy Certificate (REC) are introduced to stimulate renewable energy capacity expansion as well as generation. Currently, Indian power utilities treat RPO targets as a cost-burden, and therefore there is prevalence of non-compliance. Even other policies, such as FIT and RECs, in their present form, have failed to influence increase in renewable electricity supply. This has lead us to raise an important question whether these policies are adequate for building a cost-effective renewable energy-based low carbon electricity system for India. In this paper, we discuss the impact of above targeted policies in increasing the share of renewable electricity generation in the case of Karnataka State Electricity System. Various scenarios are developed and analysed using mixed-integer programming model to study the impacts. The results suggest that optimally managed FIT and REC schemes can provide opportunities for utilities to benefit from reduced costs. Overall, the above policies are inadequate, and introduction of market- based incentives, which expand the scope of trading in renewable energy certificates, are essential to achieve the desired objectives.

Item Type:	Journal Article
Publication:	Energy Policy
Publisher:	Elsevier Ltd
Additional Information:	The copyright of this article belongs to the Elsevier Ltd.
Keywords:	Electricity planning; Renewable energy integration; Renewable energy policies; Resource constrained electricity system
Department/Centre:	Division of Interdisciplinary Sciences > Management Studies
Date Deposited:	30 May 2022 04:51
Last Modified:	30 May 2022 04:51
URI:	https://eprints.iisc.ac.in/id/eprint/72835

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