MANIFESTING 500 GW

Ensure that renewable energy is available round the clock.Establish a viable market and reward those who take lead

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Given the intermittency of new renewables, it is now proposed that the country should move towards roundthe-clock (RTC) projects. In other words, solar and wind projects would include battery or pump storage. The "Economic Survey 2023-24" says the Union Ministry of Power has issued guidelines on tariffs for such projects, terming them as "firm and dispatchable power" from grid-connected renewable projects (FDRE). But will these projects with higher costs be viable for power purchase agreements (PPAS)? According to the "Economic Survey 202324", while inter-state transmission connected solar PV projects were bid out in the range of *2.6-2.74 per kWh, the cost of RTC projects go up to 6 per kWh (see 'Cost of renewable projects', p38 and 'Output intermittent', p42). As yet, little information is available about the commissioning of these projects. The RTC project listed under SECI's hybrid projects, with an effective PPA date of 2021, has not yet been commissioned. Industry insiders are wary of the price of delivered power and whether this will be acceptable to fund-stretched DISCOMS.

But there is another view: this price of RTC projects should remain competitive with that of fossil fuels, which score because of their ability to supply power throughout the year and time of the day.

OPTIMISE ON NATIONAL GRID THROUGH RPOS

The Electricity Act, 2003, mandates the Renewable Purchase Obligations (RPOS) as a mechanism to ensure that states with higher potential of renewables would be able to sell this to others; the mechanism makes it mandatory for all DISCOMS to purchase a certain percentage of their energy from renewable sources. As per this mandate, all states are required to meet 43.3 per cent of their total consumption of electricity from renewable sources by 2030.