Procurement

With 7.4 GW of new solar already installed in the first nine months, the year 2021 is headed to become one of the best years on record for new solar installation in India.

The successful contractor will install the arrays in blocks of 2-10 MW and will carry out all stages of installation, from site surveys through to 12 years’ operation and maintenance.

The gains from the bundling of cheaper renewable energy with high-cost thermal will be shared between the generator and distribution companies on a 50:50 basis.

A new study proposes an ‘extended producer responsibility’ based regulatory framework for end-of-life (EOL) solar PV management in India. Under the framework, the Government of India (GoI) works as the nodal agency, defining the roles and responsibilities of different stakeholders and regulating the overall supply chain. The onus of EOL solar PV take-back, transportation, storage, recovery, and destruction lies on the manufacturers, with the entire system cost borne by an executive committee formed by the manufacturers.  

After the ravages of Covid-19, electricity shortages in China have now raised costs for its solar manufacturers, with knock-on effects for developers in India too, again highlighting the dangers of relying on a single solar supply chain.

A new report finds the current credit rating mechanism for power distribution companies in India is highly linked to their operational and financial performance. The report highlights the need to revise discom ratings to reflect their green mandates, decarbonization plans, and tariff implications to resolve the challenges of payables (and receivables).

A new IEEFA note discusses the impact of the proposed market-based economic dispatch mechanism for procuring bulk power, and regulations for frequency control ancillary services.

The Delhi-based Appellate Tribunal for Electricity (APTEL) has directed Tamil Nadu State Load Despatch Centre (TNSLDC) and The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to compensate developers at 75% of PPA tariff per kWh on solar curtailment.

A new report proposes a scenario that prioritizes efficiency over variable costs in India’s coal power dispatch mechanism. It goes on to estimate the efficiency improvements and cost savings achieved in this scenario. 

The Indian power sector is set for a revolution with the proposed market-based economic dispatch (MBED) mechanism. MBED aims to establish a uniform pricing framework that prioritizes the least cost and most efficient generators while backing down more expensive ones, thereby creating a national merit order.