India policy to support cogen while strengthening the grid

India is soon to reveal new policy initiatives designed to boost the uptake of cogeneration in the country, as well as power generation from biomass and biofuels, the nation’s energy minister has said.

Piyush Goyal also said this week that the government aims to promote replacement of India’s ubiquitous diesel gensets with grid power in order to create more demand for underutilized central power plants.

"If we can replace diesel generator sets with power from the grid we could see substantial increase in demand," Goyal was quoted by the Economic Times as saying.

In order to do this, the government will announce initiatives designed to fix grid bottlenecks that give rise to the widespread use of gensets for on-site and backup power, he said. 

Goyal also emphasized that the government's rural electrification initiative could help create demand for centralized power plants. 

However, some states may have a different idea. In January, Maharashtra approved an off-grid power initiative offering subsidies to encourage the uptake of residential and commercial on-site solar and biogas power systems as well as microgrids. The state said its scheme was partly motivated by the need to bring power to rural areas. 

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