The government has changed the rules to allow power firms to bundle renewable energy into existing power purchase agreements, which is an important step toward gradually reducing thermal power generation.
The Ministries of Power and New & Renewable Energy have modified the appropriate legislation as part of a larger effort to reach 500 GW of sustainable energy production capacity by the end of 2030.
According to a statement released by the power ministry on Tuesday, the modified criteria will allow for the exchange of fossil fuel-dependent energy generation with renewable energy under 500 GW of clean energy production Power Purchase Agreements (PPAs).
“Revised guidelines providing for thermal generation companies to set up renewable energy generation capacity either by themselves or through developers through open bids and supplying it to the consumers under the existing PPAs,” the two ministries said in a joint statement.
According to the statement, because renewable energy is less expensive than thermal energy, the benefits of combining renewable and thermal energy will be distributed 50:50 between generators and distribution companies/other procurers.
Discoms (power distribution companies) will not be forced to invest in distinct renewable energy balancing infrastructure as renewable energy will be balanced with thermal energy.
This, the government claims, is a significant step toward achieving the goal of 500 GW of non-fossil fuel capacity by 2030.
Discoms will be able to track the renewable energy provided under the scheme to meet their renewable procurement needs without having to pay for separate PPAs.
The government’s recent action will speed the energy transition, which will benefit both generators and distribution utilities.
According to the statement, the two ministries are prepared to take additional steps to reach 500 GW by 2030, guided by the Minister of Power and New & Renewable Energy, for which instructions will be released soon. R K Singh is the minister in charge of both ministries.
RK Singh, the Union minister for Power and the Ministry of New & Renewable Energy (MNRE), recently evaluated the employment of a 10-gigawatt renewable energy project in Ladakh, as well as its evacuation strategy.
Singh sought the assistance of RK Mathur, the Lieutenant Governor of Ladakh, in resolving land concerns related to the project’s location in Pang, Union Territory.
It was determined that Ladakh would contribute 20,000 acres of land at Pang at once to start the project, while the availability of another 20,000 acres of land would be investigated based on inputs from the Solar Energy Corporation of India.
