With the increasing share of renewable energy in the grid and its likelihood to disturb existing power systems, the government is preparing a separate power trading platform for clean energy.The platform will be jointly developed by the ministry of new and renewable energy (MNRE) and Power Trading Corporation of India (PTC), a public-private venture for power trading.This would help states buy, sell and trade renewable-based power. This is likely to help states which have surplus renewable energy generation to sell and the ones which want to meet their renewable purchase obligation (RPO) would get a platform to buy as is need is basis.
As mandated under the National Tariff Policy, states would have to meet part of energy requirement from renewable energy sources. RPO, launched in 2010, makes it obligatory for distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy. During 2015-16, leaving a few exceptions, none of the states has met their RPO, for fifth year in a row.Senior PTC and MNRE officials said the model is under development and is likely to include Renewable Energy Certificates (RECs) as well. REC, launched in 2010, has crashed with more than 1 crore certificates going unsold owing to high price. As on June 2016, 1.75 crore of RECs of the total issued 3.3 crore were left unsold. RECs form part of the government drive to instill RPO in the states. It is for states which don’t want green energy but have to meet their RPO.
Of the 3 lakh MW power generation installed capacity, renewable energy including solar, wind and biomass stood at 42,850 MW for fiscal beginning April 2016. Thermal power generation from coal and gas still holds the lion’s share though at 1.72 lakh MW. Solar power capacity currently stands at the historic high of 6000 MW and balance is wind power and biomass etc. India is fifth largest country in terms of wind power generation capacity.In past decade, renewable energy (solar and wind power) has grown by 89% while hydro has staggered with 28%.NDA government has revised the target for renewable energy capacity addition by five times to 1,75,000 MW till 2022.