The draft hybrid wind solar policy is a step in the right direction for promotion of the India renewable energy sector but timely finalisation and clarity on regulatory front remains key, said the rating agency ICRA.
“The national hybrid policy, although still at draft stage now, is a step in the right direction for promotion of renewable energy sector on a larger scale”, said Sabyasachi Majumdar, Senior Vice President, ICRA.
ICRA added that the variability in generation profile is likely to be reduced to some extent by the hybridization of wind and solar projects at same site, given that generation from both the sources is at different intervals and in complimentary seasons.
This in turn would partially address the concerns of distribution utilities over the grid stability arising due to the intermittent nature of wind or solar.
“While there are inherent advantages in hybrid projects in optimal utilization of resources, the project economics for such projects (whether for new or hybridization of existing wind & solar plants) would be critically dependent upon the tariff level which may be either feed-in tariff based or competitively bid based, as is proposed in the policy. In our view, overall regulatory clarity in terms of tariff norms for hybrid projects remains a key”, Majumdar pointed.
The key objective of the proposed policy is to promote a large grid connected wind-solar PV system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and thus achieving better grid stability.