8 Recommendations

As part of this study, a number of interactions were held with various stake holders in both Karnataka and Tamil Nadu, to understand (a) why certain technologies have developed faster than others and (b) key issues faced in renewable energy projects. Two very successful programs, to develop wind energy in Tamil Nadu and solar water heating in Karnataka, were analyzed in detail through extensive stakeholders' engagement. The key reasons for the success of wind energy program in Tamil Nadu are as follows:

  • Good wind resources are available in the state
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  • Tamil Nadu Electricity Board (TNEB) has played a crucial role in promoting the wind, especially in the formative years of wind power development in the state (since the utility itself was behind the wind program, it facilitated settlement of issues such as those related to grid-connection, evacuation, wheeling, and banking).
  • Potential sites are mostly non-agricultural and privately-owned making them relatively easy to access and acquire.
  • There is good grid network in the wind potential areas.
  • A favorable policy and regulatory environment prevails with good wind power purchase tariff, renewable purchase obligations, tax incentives, tax holidays, and easy clearances along with accelerated depreciation benefits.

In the same way, the success of solar water heating program in Karnataka, particularly in the capital city of Bangalore, can be attributed to the following reasons:

  • There is year round demand for hot water.
  • There is good solar radiation availability.
  • Policies and regulations are conducive.
  • Rebate in electricity bill for those domestic consumers who have solar water heating systems installed in their houses.

    Mandatory use of solar water heating systems.

  • Awareness generation by the state agencies and manufacturers is an ongoing exercise.
  • There is a good manufacturing base along with established supply chains, especially in Bangalore leading to good after-sales service and better client satisfaction.

Availability of solar and wind energy resources is very location specific. While there are some common barriers pertaining to higher investment cost and grid integration etc, others depend not only on specific technology and its application, but also on the geographic location. In the following section, barrier analysis is carried out for specific technological applications such as solar water heating, solar, and wind power generation.