Feature Article

Looks like land grab Asia

The world has an abundance of renewable energy to offer, the question is how to harness it. (Editorial)

China may look like a carbon-guzzling monster, but there's a clean-tech superpower struggling to get out, says Changhua Wu.

Renewable Energy Certificates (RECs) are a type of environmental commodity intended to provide an economic incentive tor electricity generation from renewable energy sources. If renewable energy such as wind or solar power is to be supported for global, environmental or a country's energy security objective, it does not matter where the solar or the wind plant is located.

Amid the turbulence of the credit crunch, investors are increasingly concerned with finding a safe asset class for investment - property is crashing, the stock market has crashed and bonds look risky. Investors are looking to diversify their portfolios into a variety of alternative asset classes. Energy infrastructure could provide that potential safe haven.

Renewable Energy Credits/Green Certificates (RECs) is a policy instrument which provides evidence that an electricity generator has produced a certain quantum of power from a renewable energy source.

Renewable Energy Credits (RECs) are a market based instrument to promote renewable energy power and facilitate renewable energy portfolio obligations. Tradable RECs have been used extensively as a successful market-based policy instrument to promote renewables in Australia, Japan, the US, the Netherlands, Denmark and the UK.

Rajasthan is one of the states that is bestowed with good wind energy potential in the country. Of the 45,000 MW wind energy potential identified by the Ministry of New and Renewable Energy (MNRE) sources, 5,400 MW has been assessed for Rajasthan. An assessment by the Centre for Wind Energy Technology (C-WET), Chennai shows that Rajasthan has encouraging wind profile for harnessing wind power.

The Ministry of New & Renewable Energy of India has announced a scheme on Generation Based Incentive (GBI) for grid connected wind power projects. The announcement comes after a very good response from an incentive scheme for solar power generation.

The Renewables Obligation is part of the country's programme to tackle climate change and to encourage a more sustainable approach to energy consumption.