Renewables is no more a marginal element in generation As per 12th Plan estimate1, planned conventional generation capacity addition is 75785 MW & envisaged capacity addition of Re based power plant is 30500 MW Wind would continue to spearhead RE capacity additions As per FOR study2, envisaged annual RE capacity addition during the 12th Plan period would be: Source FY12 FY13 FY14 FY15 FY16 FY17 Wind 3,178 3,769 3,988 3,935 3,883 3,680 Solar 391 1,060 1,585 2,005 2,055 2,o75 SHP 504 360 474 682 824 460 Biomass 123 850 850 850 850 850 Total 4,197 6.039 6,897 7,472 7,611 7,695 1http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf 2http:/www.forumofregulators.gov.in/Data/Reports/Final_Report_FOR_RPO_Study.pdf By 2025 the renewable capacity in the country is likely to be 100,000 MW as against conventional power capacity of about 3,25,000 MW. The capacity addition in renewable power therefore will be larger than conventional power for every plan (14th plan onward)
1) Amendment in EA2003 / Separate RE Law.2) Specification of RPO target in the Act/RE Law binding States.3) Uniform REC Regulations for States; to be derived from the ACT/LAW itself.4) Meeting these targets would require mainstreaming renewables through concise legal provisions.5) Member-RE in SERCs, CERC & CEA and other policy making bodies at center and state level/ utilities.6) Promotion of Open Access- RE power should be exempt from cross subsidy surcharge and there should be center level assistance towards wheeling/ transmission charges.
Key Points Backdrop1) Centralized purchase of REC by There is no deterrence for not meeting centre level agency in case of non- ‘mandatory’ RPO. fulfillment of RPO and adjustment Not even a single State has enforced penalty in fund allocation to respective clause. state. REC Market1 has started witnessing reduced2) Quarterly compliance of RPO. demand.3) Separate SLDC or RLDC to be The buy bid has fallen to lowest level in last created for non-conventional year; further buy-sell ratio is at all time low: power.4) REC Floor price projection for next 10 years (to facilitate bankability of RECs).5) Only new capacities across RE technologies should be allowed participation in REC mechanism. Growth of renewable sector would be contingent on facilitating a market for RE based power; creation of demand through enforcing of RPO and creation of supply through assuring appropriate returns to investors 1https://www.recregistryindia.in
Key Points Backdrop1) Certainly of power solar/thermal is not Inappropriate to take cue from solar bidding available in wind power generation. Solar radiation assessment can be done with fair2) WAR (wind resource assessment) varies accuracy based on satellite data; across pockets within States and it needs International experience: NREL, US Dept. of assessment over long tenure to reasonably Energy. Conclusion1 based on competitive estimate PLF. biddings of Brazil, New Jersey, California and China, is3) State should initiate competitive bidding “Speculative underbidding during the auction after acquiring land and sharing the WRA process can lead to high attrition rates, which may data with the bidders to avoid speculative jeopardize this certainty and lead to fewer projects bidding. being built than were initially contracted”4) Competitive bidding in wind has not been “Unintended consequences: Where material successful in most parts of the world. financial repercussions are not associated with an auction, bids may turn out to be inadequate to make projects viable” Implementation of competitive bidding would require putting in place well defined procedure & evaluation methodology; at the same time taking cognizance of wing related issue pertaining to resource assessment and site availability 1http://www.nrel.gov/docs/fy11osti/50225.pdf
1) Utilities and State Load Despatch Centre must adhere to the Grid Code to have a “must run a status” for renewable power projects as they are seasonal and depend on nature.2) There should be a compensation mechanism from State DISCOMs, if turbines are switched off during the peak season, as renewables are seasonal in nature.3) Quick Implementation of synchronizing Southern Grid with National Grid.4) The RE Corridor Kanyakumari to Delhi Proposed by Power grid to be in operation as short time as possible to link Southern grid fully with National Grid.5) Set-up SLDC/RLDC separately for non-conventional Energy to facilitate forecasting/ scheduling of power (non firm to semi firm).
1) Wheeling and Banking must be encouraged in all states as a national programme and sell it under Group Captive.2) Wheeling and Banking charges may be mutually arrived upon in such a manner that to place a burden either on the generator or on the utility.3) RE law should enable this mandatorily.
1) DISCOM’s must pay Renewable Power within 30 days of invoice failing which, it must be paid with interest of 12%.2) DISCOMs/ PSU Utilities to be rebuilt as financially viable entities.
GBI to be continued till CERC tariff methodology is adopted by States for APPC/FIT Extension at minimum Re 1/unit for 12th Plan period as per crisic report. Applicability/impact of changes in regulatory & policy regime prospectively to existing PPAs. Preparation of wind/ solar atlas Long term RPO trajectories for all States. Policy to facilitate availability of variety of turbines/ new technologies. (off. shore) Inter-state transaction of renewable power Streamlining the process of wind project in forest land/areas.