The government has even floated a tender to buy 2,000 MW of solar and wind power combined to use the leeway provided by the ministry of power
NTPC has been quick to make use of the government’s permission to allow state-owned generators the flexibility of selling renewable power under the existing power purchase agreements for coal-based plants, according to a top official of the company. This would allow it to reap the benefit of cheaper renewable power while also reducing its carbon footprint. The company even has the flexibility to exploit this opportunity by cutting down generation at its plants and supply renewable power instead.
The official said NTPC would be able to sell this power at the same rate at which it had contracted to sell the coal-based power under the PPA.
“If there is loss because of blending of renewable power, then we will have to absorb it. If there is a profit, we will give 50 per cent rebate in their annual bill,” the official said, adding that since sale of renewable power attracts nil inter-state transmission service fee, it would be quite easy for the company to benefit from the new provision. There’s a caveat though: renewable plants which already have PPAs against them cannot be used to supply power under this mechanism.
The government has even floated a tender to buy 2,000 MW of solar and wind power combined to use the leeway provided by the ministry of power.
Source : moneycontrol
