Govt allows thermal power firms to meet PPA commitments via renewables supply

By: |
November 17, 2021 3:40 AM

Thermal power plants can set up renewable energy generation capacity either by themselves, or through developers, and the gains from the bundling of renewable energy with thermal will be shared between generators and state-run power distribution companies (discoms) on a 50:50 basis, the government said.

The government is expected to take some additional steps for achieving 500 GW target, “for which orders are to be issued shortly”.The government is expected to take some additional steps for achieving 500 GW target, “for which orders are to be issued shortly”.

The Union ministry of new and renewable energy (MNRE) on Tuesday issued guidelines to allow thermal generation companies to supply power to customers from their renewable energy projects under the existing power purchase agreements (PPAs) for coal-based electricity.

Thermal power plants can set up renewable energy generation capacity either by themselves, or through developers, and the gains from the bundling of renewable energy with thermal will be shared between generators and state-run power distribution companies (discoms) on a 50:50 basis, the government said.

Calling it a “very significant step towards achieving the goal of 500 giga-watt (GW) of non-fossil fuel capacity by 2030,” the statement added that “the distribution companies will be able to count the renewable energy supplied under the scheme towards their renewable purchase obligation and this will be without the financial burden of separate PPA”.

The government is expected to take some additional steps for achieving 500 GW target, “for which orders are to be issued shortly”.

The current installed renewable energy capacity in the country in 103 GW, of which 48 GW are solar.

Another 50 GW of renewable energy projects are under implementation and 32 GW are in various stages of bidding.Selling renewable energy and thermal power together in a ‘bundle’ will provide buyers the assurance of receiving firm uninterrupted electricity supply.

It would also address the issues of intermittency, limited hours of supply and low capacity utilisations of renewable power plants.

Union minister for power and MNRE RK Singh has also recently reviewed the implementation of 10 GW renewable energy project in Ladakh along with its evacuation plan.

Singh sought the support of RK Mathur, the Lieutenant Governor of Ladakh, to sort out the land issues in setting up the project at identified areas of Pang in the Union Territory.

It was decided that 20,000 acres of land at Pang would be provided immediately by Ladakh for setting the project, while availability of other 20,000 acres of land would be explored based on inputs provided by the Solar Energy Corporation of India.

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