vOK to start
small (Mauritius started with 1 to 2 MW units) which allows a learning experience and
sorting out the kinks. Can set an initial target of up to 5% installed capacity. Higher
prices can be justified on basis of importance of diversity, elimination of
transmission costs & increased through rural electrification –
over time prices can come down with the right incentives
vEasier to
convince Governments/utilities to act.
Thereafter, it is possible to expand exponential and
initiate large initiatives.
vFeed-in
tariff is key in promoting co-generation
as it provides a strong signal to private sector and
financing institutions
vNot wise to
leave it only to Regulators. Parliament
can play an important role.
vAn important addition to feed-in tariff is a standard ÒPower Purchase Agreement
(PPA)Ó between agro-industry and power utility. Simplifies negotiations (which can
take as long as 7-10years) and removes a major barrier to co-generation
investments.
vRevenue
sharing mechanism which ensures that
large majority of population saw tangible benefits was
key to maintain policy support.