The Ministry of Power (MoP) has introduced a detailed mechanism under the flexibility in generation and scheduling of thermal power stations scheme that permits replacement of thermal and hydro power with renewable energy (RE).
The objective was to promote bundling of cheaper RE with costlier thermal power to augment Renewable Purchase Obligations (RPO). This procurement involves setting up of RE plants by successful bidders emerging from the transparent bidding process.
However, after deliberation, it was found that certain procedures were delaying the implementation of the policy. Consequently, the MoP has made adequate amendments in the policy so as to clear the hurdles.
First, the ministry has removed the obligation of drafting a standard document for facilitating operation along with existing Power Purchase Agreement (PPA) under Rule 9.2. In its verdict, the ministry has stated that the proposed scheme stands as an independent policy document and there was no need to annex it with the PPA.
Similarly, the ministry has also brought down Rule 9.4.3 requiring the bidder to take approval from PPA holders for finalising the proposed mix intended for RE bundling. It was informed that the mix for bundling was determined on technical considerations taking into account grid stability, which negates the requirement of any such approval.
Renewable power generation grows 17%
Amid strong power demand, India has been keeping tabs on various energy sources to ensure uninterrupted supply. In this regard, RE sources played a key role as they lifted a part of the burden from the coal-based plants.
As per data provided by MoP, power generation from renewables increased 17% y-o-y to 92,882 million units during April-August, 2022, with major contribution coming from wind and solar plants.
The government remains steadfast about implementing the flexible generation policy on fast-track basis as it moves towards its long-term goal of attaining 500 GW non-fossil fuel capacity by 2030.
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