India to replace thermal power with renewables under existing PPAs

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From pv magazine India

India's Ministry of Power and New and Renewable Energy have issued revised guidelines for thermal generation companies to set up renewable energy generation capacity, either by themselves or through developers, via open bids. The companies will supply the bundled power to the consumers under existing power purchase agreements.

This will enable the replacement of high-cost fossil fuel based energy with cheaper renewable energy under existing PPAs. The gains from the bundling of renewable energy with thermal will be shared between the generator and distribution companies or other procurers on a 50:50 basis. As the renewable energy will be balanced with thermal energy, the distribution companies will need not acquire any separate capacity for balancing of renewable energy.

“This is a very significant step toward achieving the goal of 500 GW of non-fossil fuel capacity by 2030. The distribution companies will be able to count the renewable energy supplied under the scheme towards their renewable purchase obligation and this will be without the financial burden of separate PPA. This step by the central government will lead to a faster energy transition and will be beneficial for both the generators and the distribution companies,” said the power ministry.

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