Govt allows thermal power firms to meet PPA commitments via renewables supply, Nov 17, 2021

Posted On : December 14, 2021

Thermal power plants can set up renewable energy generation capacity either by themselves, or through developers, and the gains from the bundling of renewable energy with thermal will be shared between generators and state-run power distribution companies (discoms) on a 50:50 basis, the government said.

The Union ministry of new and renewable energy (MNRE) on Tuesday issued guidelines to allow thermal generation companies to supply power to customers from their renewable energy projects under the existing power purchase agreements (PPAs) for coal-based electricity.

Thermal power plants can set up renewable energy generation capacity either by themselves, or through developers, and the gains from the bundling of renewable energy with thermal will be shared between generators and state-run power distribution companies (discoms) on a 50:50 basis, the government said.

Calling it a “very significant step towards achieving the goal of 500 giga-watt (GW) of non-fossil fuel capacity by 2030,” the statement added that “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”.

The government is expected to take some additional steps for achieving 500 GW target, “for which orders are to be issued shortly”.

The current installed renewable energy capacity in the country in 103 GW, of which 48 GW are solar.

Another 50 GW of renewable energy projects are under implementation and 32 GW are in various stages of bidding.Selling renewable energy and thermal power together in a ‘bundle’