Context and Objectives of the Study

Abstract

The need for energy security in India stems mainly from the need to maintain the growth trajectory necessary to achieve its objectives of poverty eradication and inclusive development. In this context, it is being increasingly recognized that going forward, the country needs to diversify its primary energy sources and make attempts to explore cleaner and renewable sources of, and solutions for energy. The arguments are: the need to ensure energy security by reducing dependence on fuel imports, securing development dividends through poverty linkages, GHG emissions and the risk of climate change, and health. A number of financial, market-based, and regulatory measures have been put in place toward this end. However, sustainable and successful deployment and adoption of clean energy solutions are not a financial or a regulatory issue alone, it has a direct bearing on the need and capacity for research and innovation, skill development, besides addressing other market barriers including many social and cultural issues. In this context, setting up of the National Clean Energy Fund (NCEF) for funding research and innovative projects in clean energy technologies is a welcome step. The present design of NCEF lacks robust strategy, targets, and innovative ideas on prioritization. In this context, this study, among others, identifies the most promising avenues for utilization of the Fund's resources and their distribution across the energy subsectors; examines catalytic opportunities for the Fund, develops a framework for evaluation of the Fund's performance as well as a framework for assessment of proposals and monitoring and evaluation of projects funded by the NCEF; and makes specific recommendations on addressing other crucial market barriers. This book will be of use to policy makers, government agencies, academics, industries, and other stakeholders working in the field of clean energy and energy technology policy.