National Renewable Purchase Responsibility on the cards

The Ministry of New and Renewable Resource is working towards generating a National Renewable Purchase Responsibility (RPO) to change the existing state-wise RPOs, which have actually not worked.

This has actually ended up being needed in the context of the strategy to auction 50 GW of wind, solar and hybrid capabilities each year, and a modification in the technique of auction from ‘reverse bidding’ to ‘closed bidding’. The modification implies that the bidders will not need to begin out-bidding each other after their preliminary quotes are opened, which efficiently implies that the tariffs at which they offer their power would increase.

It is broadly anticipated that wind and solar tariffs would increase from the existing levels of around Rs 2.90 a kWhr, to around Rs 3.30. The worry is that the electrical energy circulation business (discoms), which have actually ended up being utilized to purchasing power at low tariffs, would withstand the increase.

Renewable resource experts state that the federal government business, SECI, which has actually operated as the auctioneer and the very first buyer of power, has actually been having a hard time to sign back-to-back power sales arrangements with state federal governments. (SECI purchases power from wind and solar business and offers it to discoms of states that have no wind or solar resources, so that they might satisfy their eco-friendly purchase commitments.)

So, the concern is, if tariffs increase even more, will the discoms play along? The response is, ‘nationwide RPO’ with charges for non-fulfilment.

This varies from the existing state RPOs because there would henceforth be one single portion for all states– a set portion of their overall power purchase/ generation needs to originate from renewable resource. Presently, the portion is repaired by the particular electrical energy regulative commission of each state.

The nationwide RPO, according to the existing thinking, would increase slowly to 10.5 percent each for wind and solar by 2030– by that year, a fifth of the power that the discoms offer to their clients would originate from eco-friendly sources. The nationwide RPO is proposed to be brought through the Energy Preservation Act.

D V Giri, Secretary-General, Indian Wind Turbine Manufacturers’ Association, has actually invited the federal government’s “favorable thinking”, calling it the “requirement of the hour and an action in the best instructions”. He stated the nationwide RPO would play a huge function in the nation’s energy shift far from nonrenewable fuel sources.

At present, 12 percent of the energy consumed in India (approximately, 1.6 trillion kWhr) originates from eco-friendly sources– primarily wind and solar, however likewise from little hydro and biomass, however not counting big hydro electrical plants.

Likewise checked out: Govt launches month-wise bidding calendar for renewable resource

According to the Report on Ideal Generation Mix for 2029-30, launched by the federal government on Wednesday, the nation would have an overall set up capability of 777 GW and battery storage of 41 GW. Electrical energy generation would be 2.4 trillion systems, 1.3 trillion from thermal, 1 trillion from non-fossil fuels (212 billion hydro, 208 billion wind, 553 billion solar, 92 billion nuclear and 10 billion from other RE sources).

The share of generation from non-fossil sources (consisting of big hydro), would increase from 25 percent in 2022-23 to 44 percent in 2029-30. The nationwide RPO is a vital action towards making this take place, market sources stated.


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