Fossil Fuel costs as well as long term availability for Energy Security of most nations.   Renewable Energy Technologies (RET) have matured. Techno-economic viability of Biomass, Wind & Hydel Power is field proven.   Carbon Markets offer various options fro generating additional revenues as well as in Project financing.   Indian Electricity Act incentives power generation for Renewable Energy Sources as well as provides "open access" to generators.   Decentralized & Distribution Generation schemes Electrification schemes are emerging as the preferred option for Rural Electrification in developing economies.

Evolution towards competitive electric markets coupled with development of new generation technologies, has sparked new and broader interest in Distributed Generation (DG). There are also the issues related to Centralised Power Generation and Transmission facilities

CENTRALISED POWER GENERATION & TRANSMISSION- CANNOT  MEET INDIAN RURAL ELECTRIFICATION NEEDS

55 % of Rural Households lack electricity access & poor availability/ quality of grid power inhibits non agricultural economic activity

INVESTMENTS  &  LINE/TRANSFORMATION  LOSSES  UPTO  33 or  11 KV  FEEDERS ARE  HIGH & RETURNS TOO LOW TO SERVICE SUCH INVESTMENTS

Centralised Generation (firing Coal) faces constraints of Cooling Water availability as well as  Indian Coal supplies

Flat growth as unexploited coal mines are in Forest areas with large tribal population

2010 – 11 forecast is 571.9 mill MT…unlikely to be achieved

Central Electricity Authority forecast is import of 35 mill MT  (2010 -11) for Utility range Power Plants

Indian Coal imports > 60 mill MT/year including Industry requirement