Transmission & distribution

The government is trying to harness renewables to increase domestic output but will need a more liberal energy market and to consider the structure of procurement auctions, cloying red tape and the financial travails of state utilities if it is to achieve its goals, says Rakshika Kaul of Amp Energy India.

The Indian power distribution sector needs bold policy choices such as the closure of old, inefficient coal-based power plants to improve its financial viability. Early retirement of expensive coal power contracts will result in significant savings for the states as they can contract cleaner, cheaper renewable power.  

India’s Ministry of New and Renewable Energy had invited consulting proposals for its ambitious globally interconnected power grid plan called ‘one sun, one world, one grid’ (OSOWOG). The program—taken up with assistance from the World Bank— aims at seamless sharing of renewable energy resources among countries for mutual benefits and global sustainability.

The global hybrid energy market, including energy storage, is projected to touch $40 billion by 2025. It is an opportunity that India has capitalized upon, earlier than others.

The lobby group has asked the ministry that the interstate transmission charges waiver be extended to cover solar and wind projects that get commissioned up to December 31, 2023. It also recommended that the waiver be linked to bidding, allowing projects commissioned within 36 months from the award of contract to avail the exemption, even if they get commissioned beyond December 31, 2023.

Solar and wind projects commissioned beyond the year 2022—at least till mid of 2023—may be eligible for interstate transmission charges waiver on the electricity generated.

The ‘175 GW by 2022’ renewable energy target seems unachievable, necessitating the benchmark be moved to ‘450 GW by 2030’ instead. But even that will require the sector to move back to the front foot from 2021.

July 6 is the last date to submit proposals for the ambitious ‘one sun, one world, one grid’ plan that aims at seamless sharing of renewable energy resources among countries for mutual benefits and global sustainability. The program has been taken up by the Ministry with assistance from the World Bank.

The prime minister again emphasized the need for India to develop a domestic solar manufacturing industry and also urged officials to get on with plans to make Ladakh carbon-neutral.

The integrated power producer, which has 138 MW of operational solar capacity and 2730 MW of state-of-the-art gas based power plants, sees opportunity of flexible generation to sell pooled round-the-clock power [renewable + gas] at competitive cost on a long-term basis.