MAKE OR BREAK MOMENT

January 31, 2025

Down To Earth

Much has been done to improve regulatory environment for scaling up clean energy. But hiccups remain

There is no doubt that India is committed to expand its clean energy portfolio. The government has set ambitious targets and much has been done to improve the regulatory environment for scaling up the industry. The Union Ministry of New and Renewable Energy (MNRE) has plans to ensure annual bids of 50 GW of new renewable capacity until 2027-28. It has also designated agencies to implement the programme. Initially, three Renewable Energy Implementation Agencies (REIAS) had been nominated: the National Thermal Power Corporation (NTPC), the Solar Energy Corporation of India (SECI) and the National Hydroelectric Power Corporation.

(NHPC). These agencies were to function as intermediaries in this business to bid for projects, select developers and sell the energy to distribution companies. In April 2023, SJVN formerly known as Satluj Jal Vidyut Nigam was added to this list of REIAS.

The sector had already been awarded the advantage of being in the "Must-Run" category under the Electricity Act of 2003-meaning, among all the energy sources, renewable energy will be given priority dispatch. But this is often not the case. For instance, wind energy is often curtailed since units are required to back down from energy generation due to lack of transmission or because utilities find the cost of the power too high-particularly in the case of old power purchase agreements. So in 2021, the Union Ministry of Power notified the Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, which set out the compensation that would be awarded to renewable energy plants if they were required to be curtailed.