India: Implementing incentives focused on energy
India: Implementing incentives focused on energy / Anuradha R.V. & Sumiti Yadava. IDDRI, Idées pour le débat, 2012, 28 p. (Working Papers N°06/2012. Challenges for climate policy and governance in key emerging countries Series)
Points clés (source et copyright © IDDRI) :
India’s climate policy priorities : energy efficiency and renewable energy
Two of the eight missions under the National Action Plan on Climate Change (NAPCC) focus on solar energy and energy efficiency. Several initiatives have been recently taken by central and states governments and are likely to play a role in determining the overall success of the country’s climate policy. But it is still early days for making any substantive evaluation of the policy instruments being implemented in India.
Market-based mechanisms for renewable energy targets
The principal instruments related to renewable energy are similar to those being implemented in developed countries: preferential tariffs for renewable energy, Renewable Purchase Obligations (RPO) and a variety of subsidies and other incentives. In early 2011 trading of Renewable Energy Certificates (REC) has been allowed in order to make the RPO more flexible and efficient. Time will be the test of the overall impact of such measures, and of the role played by renewable sources in the Indian energy mix.
India’s energy efficiency policy : the PAT scheme
The Perform, Achieve and Trade (PAT) scheme, a first-of-its-kind initiative in the developing world, intends to enhance the cost-effectiveness of energy efficiency in energy-intensive industries by certifying energy savings and enabling their trading. Other energy efficiency policy instruments seek to accelerate the shift to energy efficient appliances, create mechanisms that would help to finance demand-side management programmes, provide fiscal incentives that may supplement the creation of energy efficiency markets, etc.
Towards a low-carbon development strategy
Apart from the already mentioned policies, no substantive regulatory measures have yet been implemented in sectors such as transportation, or specific industry sectors. An expert group of the Planning Commission is thus in the process of finalising a roadmap for low-carbon inclusive growth, which is one pillar of the 12th Five Year Plan (2012-2017), including sector-specific proposals as well as suggestions for enabling legislation, rules and policies.