The recently concluded International Conference for Renewable Energies (Renewables 2004) in Bonn, paved the way for a global transformation in energy structures and for a massive increase in the use of renewable energies for alleviating global poverty and protecting the climate.On 4 June, government delegates from 154 countries adopted the Political Declarations of renewables 2004. The declaration contains definitions of common political objectives for promoting the role of renewable energies.

In keeping with the global trends Indian Ministry of Non-conventional Energy Sources (MNES) estimates that there is a potential of generating about 1500 MW of power from urban and municipal wastes and about 1000 MW from industrial wastes in the country, which is likely to increase further with economic development. But if this electricity generation is not based on genuine renewable energy technologies, the very purpose of protecting environment and health will be defeated. There is a danger of promotion of toxic burn techologies through misplaced financial incnetives.


Energy Recovery Programme

The National Programme on Energy Recovery from Urban and Industrial Wastes was launched during the year 1995-96 with the following objectives (i) creation of conducive conditions with financial and fiscal regime to promote, develop and demonstrate the utilisation of wastes for recovery of energy; (ii) improvement in the waste management practices through adoption of renewable energy technologies for processing and treatment of wastes prior to disposal; and (iii) promotion of projects for recovery of energy from wastes from Urban and Industrial sectors.

Financial Incentives

Financial Incentives being provided for eligible waste-to-energy projects under National Programme on Energy Recovery from Urban and Industrial Wastes are given below:

Commercial Projects

Interest subsidy is provided for reducing the rate of interest to 7.5% (4% in case of Municipal Solid Waste (MSW) based projects taken up by the Municipal Corporations / Urban Local Bodies). The amounts of interest subsidy capitalised with an annual discount rate of 12%, given to Financial Institutions (FIs) are as follows:

Demonstration Projects

Assistance of up to 50% of capital cost of the project limited to Rs. 3.00 crore per MW for demonstration projects to generate power from Municipal Solid Wastes and a few selected Industrial Wastes.

Power generation at Sewage Treatment Plants (STPs)

Financial assistance of up to 50% of the incremental capital cost for generation of power from biogas.

Urban Local Bodies

Financial Incentive @ Rs. 15.00 lakh per MWe is payable to Municipal Corporations/Urban Local Bodies, for providing garbage free of cost at the project site and land on long term (30 years +) basis on nominal lease rent. However this incentive will be reduced to 50% in case of projects for generation of power from fuel or fuel from waste.

State Nodal Agencies

Financial incentives @ Rs. 5.00 lakh per MWe is payable to State Nodal Agencies for promotion, co-ordination and monitoring of projects. However, this incentive will be reduced to 50% in case of projects for generation of power from fuel or fuel from waste.

Financial Institutions

A service charge of 2% of the actual subsidy channelised through the FI to the promoter or other FIs, subject to a maximum of Rs. 2.00 lakh per project.

Preparation of Detailed Project Report

50% of the cost of preparation of DPR or Techno-economic Feasibility Reports, subject to a maximum of Rs. 2.00 lakh per report to Urban Local Bodies only.

International Conference for Renewable Energies have laid down new international goals for the increased use of renewables. The action plan will mobilise billions in investments in generating energy from wind, solar, biomass and geothermal sources. This will also benefit the climate. Implementing these measures will lead to the continued and significant decrease in global emissions of carbon dioxide: by 2015 estimated savings of 1.2 billion tonnes CO2 per year are anticipated.


Altogether around 165 voluntary actions and commitments were submitted for inclusion in the Action Programme. Particularly ambitious goals were presented by China and the Philippines for example, as well as from the World Bank and the Global Environment Facility (GEF).

By 2010, China plans to increase the share of renewable energies in its total installed energy capacity to 10 per cent. This is equivalent to 60 GW total installed capacity and is expected to be made up of 50 GW from small hydropower installations, 4 GW from wind energy, 6 GW from biomass utilisation and 450 MW from solar power. In order to achieve this goal, China has developed its own national strategy for renewable energies. The government will raise around € 50 billion for this in cooperation with other stakeholders.

Questions of financing were among the central topics of the Conference. The Global Environment Facility (GEF) agreed to use US$ 100 million per year to support ambitious renewable energy projects in developing countries. The aim is to trigger total investments of around US$ 500 million per year.

The World Bank Group announced it will increase funding in the renewable energies and energy efficiency sectors by 20% p.a. over the next five years. Support for renewable energies and energy efficiency will amount to a total of US$ 400 million in 2010, equivalent to twice the previous amount.

Renewable energies are accepted worldwide; both here and in developing countries they are gaining more and more supporters. The age of renewables seem to have begun. Perhaps, it is in tune with this reality that there is a proposal to rename MNES as the Ministry for Renewable and New Energies which has an objective of having 10 percent of additional energy capacity from renewables by 2012.

The fact remains it is not the concern for environment that is driving these moves far from it the real reason is the alarming depletion of fossil fuels.