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RE push: Rules to be brought in for Pooling Solar Tariffs

  • Published
    7th Feb, 2022

To boost the procurement of green energy, the centre is expected to come up with guidelines to group solar tariffs and is also targeting to boost bundling of renewable energy (RE) in existing thermal Power Purchase Agreements (PPAs).


Solar energy scenario in India

  • The total installed renewable energy capacity in India, excluding large hydro, has crossed the mile-stone of 100 GW. 
  • Today India stands at 4th position in the world in terms of installed RE capacity, 5th in solar and 4th in wind in terms of installed capacity.
  • A number of industrial-scale solar energy plants have come up in the past few years.
  • The government-backed company Solar Energy Corp. of India (SECI) has been auctioning solar energy capacity to various private developers using a bidding process that favours the cheapest tariffs.
  • India is aiming to boost installed renewable energy capacity to 500 GW (GigaWatts) by 2030.

About Power Purchase Agreements (PPAs):

  • PPA is both a legal and a commercial document between a power producer as seller and the wholesale energy purchaser (the state electricity boards), as buyer.
  • The PPA states the obligations of the power producer to produce and deliver power to specified points and further sets out the price at which such power will be purchased.
  • PPA usually runs for around 20-25 years. The PPA is often regarded as the central document in the development of independent electricity generating assets (power plants), and is a key to obtaining project financing for the project.
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