The centre is about to provide you with guidelines to pool photo voltaic tariffs and can also be aiming to extend bundling of renewable power in current thermal Power Purchase Agreements (PPAs) to spice up the procurement of renewable power, union energy secretary Alok Kumar instructed the Indian Express. The authorities is aiming to spice up put in renewable power capability to 500 GW (GigaWatts) by 2030.
“ The intention is to have a pool in which various procurements that are done over a year, two or three years, their tariffs are pooled so that there is no problem that (some tariffs are) 5 paise lower or 5 paise higher,” Kumar mentioned on the problem of discoms (energy distribution corporations) ready for photo voltaic tariffs to fall additional earlier than coming into procurement agreements. Kumar famous that the facility ministry was working with the MNRE and would launch guidelines to deal with the problem.
Solar tariffs have fallen constantly over the previous decade to a low of below Rs 2 per unit (1 unit = 1 kWh) in December 2020 as a result of falling value of photo voltaic panels and decrease financing value. The development of decrease photo voltaic tariffs has led to many many gamers ready on tariffs to fall additional as a substitute of coming into into long run energy procurement agreements.
“ Solar tariffs have fallen to as low as 3 cents or less than ?2.5 per kWh (kilowatt-hour) because solar panel prices have been falling for a very long time,” mentioned Debasish Mishra accomplice and chief at Deloitte India noting that photo voltaic tariffs had lately begun to stagnate or fluctuate. Mishra mentioned that SECI (Solar Energy Corporation of India Limited) was now “often finding it difficult to find buyers at discovered prices because discoms expect the tariffs will continue to fall even further and many of them have already met renewable purchase obligations.”
Mishra famous {that a} transfer to pool tariffs might assist velocity up procurement of solar energy by addressing considerations amongst discoms of dropping out on decrease photo voltaic tariffs sooner or later.
Kumar additionally mentioned that the federal government meant that about 10,000 MW of Renewable power primarily based energy could be bundled with fossil gas primarily based energy over the subsequent 4-5 12 months and this may additionally assist decrease complete value of energy procurement for sure discoms.
Mishra quoted above mentioned “there are a a number of old thermal power projects that are unviable because of high variable costs and don’t get despatched in merit order,” including that discoms are pressured to pay mounted prices as a result of necessities below current PPAs and {that a} transfer to bundle cheaper renewable power below these PPAs would assist discoms decrease their common value of energy procurement.
The centre had in November 2021 issued pointers which permitted thermal era corporations to produce energy to prospects from their renewable power initiatives below the present energy buy agreements (PPAs) for coal-based electrical energy with positive factors from the bundling of renewable power to be shared between mills and (discoms) on a 50:50 foundation.
