Poor implementation of solar energy policy in Odisha: a review

PRESS NOTE    

                                                                           30 Sept. 2014

Poor implementation of solar energy policy in Odisha: a review

Odisha is the first state in India to proceed with reforms in power sector. However, the state has for long ignored non‐conventional sources of energy like solar power. Considering the Sun God temple in Konark, it is ironical that the state government has ignored solar energy for long. The state is adversely affected by prolonged power cuts because of energy production not meeting the consumption demands. By virtue of its geographical location, Odisha state, receives solar radiation of about 5 kmh/sqm/day. Currently, 8 power projects with a cumulative capacity of 8 MW related to solar energy are under implementation by private players by availing state government's incentives.

Using the diagnostic toolkit developed by World Resources Institute (WRI), Youth for Social Development (YSD) a non-government organization based in Berhampur, Odisha, working to improve governance and people’s participation has undertaken the review of solar energy in Odisha state. The diagnosis toolkit looks at finances, administration, monitoring‐revision‐reporting, compliance and enforcement. These four form the key functions of the policy making and implementation. Concomitantly, principles of good governance are taken in to account ‐‐ role & responsibility, transparency, stakeholder participation, institutional capacity and accountability.

Odisha state enjoyed excess power availability in the state at least until 2010. However, it is important to note that around 10,000 villages/habitats are yet to be electrified in Odisha. Given the current deficit in power supply in addition to the expansion of power facility to villages with no power hither to, it is only going to further increase the demand for power in Odisha. Solar energy is a boon in geographical areas that are hitherto inaccessible due to harsh terrain. Thus, it is right time for the government of Odisha to encourage renewable energy sources like solar power.

Solar energy is also encouraged by the government of India through JNNSM, while creating structural space of Independent Power Producers (IPPs) through RPOs. Though solar energy plants are being installed in Odisha, that sector is plagued by problems like high costs, institutional incapacities, lack of awareness and therefore lack of transparency, lack of funds, poor stakeholder engagement, inconsistency in policies particularly with two agencies involved like GEDCOL and OREDA, are some of them that are discussed below. Though a draft solar policy is in place for Odisha, it remains yet to be finalised.

The review study identifies various issues with the solar policy implementation in Odisha like, transparency, finances, coordination between various agencies, failure in expanding the solar energy programme, etc. The study concludes with policy suggestions. It is high time that Odisha captures the momentum in expanding solar energy across the state.

On the way forward it has been resolved to take the solar energy issues to more discussion level to understand the technicalities, suggest specific policy suggestions and pressure state government to make an efficient solar energy policy in Odisha at the same time ti identify specifc policy gaps and to advocacte for bridge them. So a civil society consultation will be organised to have more discussion on these issues and take this to the next level.  

In this occasion officials from OREDA, GEDCOL, Energy Department, members of civil society, Secretary of Youth for Social Development Bibhu Prasad Sahu, convenor Coast Council Mr. Sudarshan Chhotray, Director Chetna Society Dr. Narasimha Reddy, Mr. Thimma Reddy of People’s Monitoring Group on Electricity Regulartion, Andhra Pradesh, Mr. Bharat Jairaj from World Resources Institute and other environmentalists present and shared their valuable suggestions.

On the other hand Additional Secretary Mr. Samarajit Nayak, Additional Secretary of Energy Department, Government of Odisha, Mr. Ambika Nanda of State Chief of UNDP and Mr. Akshaya Kumar Biswal, Regional Manager of Oxfam India, Mr. Bibhu Prasad Tripathy of CEE has presented and shared their valuable suggestions on solar energy policy of Odisha.  

The programme was jointly organised by YSD,Berhampur,Coast Council in collaboration with Chetna Society ,Hydrabad and World Resources Institute.