Renewable and Coal PPAs are beginning to clash as India increases its renewable generation
State-run distribution companies (DISCOMs) and negligent state electricity regulatory commissions (SERCs) are creating an obstacle in the path of India’s solar story, according to a letter written by R. K. Singh, Minister for Power, to Minister of Finance, Arun Jaitley.
Solar renewable energy certificate (REC) trading witnessed an unprecedented spike in the month of September 2018. A total of 1,558,062 solar RECs were traded in September 2018. This is 1,071,933 more solar RECs than the 486,129 solar RECs traded in August 2018.
While the government, Reserve Bank of India and the judiciary are grappling with the issue of stressed power projects worth Rs 2.5 lakh crore, the electricity distribution companies (discoms) are adding to the latter’s woes.
Rating agency Icra has estimated a subsidy dependence of Rs 85,000 crore amid low tariff hikes allowed for discoms in 2018-19, and expects improvement in thermal plants capacity utilisation or PLF in near to medium term.
The Union government plans to set up a national power distribution company that will handhold state discoms in electricity distribution activities and ensure time-bound implementation of central schemes.
The government has awarded power transmission projects worth Rs 48,427 crore since 2014, power distribution companies have saved Rs 20,000 crore in interest cost and the power ministry’s star labelling programme has helped save Rs 22,500 crore worth of energy over the period.
The draft amendment to the National Tariff Policy, 2016, released by the power ministry on Wednesday proposed to introduce a penalty mechanism for gratuitous load-shedding by electricity distribution companies (discoms),