Speaking at the 6th Foundation Day of Association of Renewable Energy Agencies of States (AREAS) on Thursday, Singh said, “Renewable energy is economically viable today. The only rider is storage. Prices of storage will come down over time”
New Delhi: Power Minister R K Singh has proposed renewable purchase obligation (RPO) mechanism for round the clock (RTC) renewable energy, which will promote storage of electricity in the country. Under RPO, bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of renewable energy or RECs (renewable energy certificates) in lieu of clean energy.
Once the RPO is mandatory for RTC renewable energy, it would encourage investments in renewable electricity storage projects.
Speaking at the 6th Foundation Day of Association of Renewable Energy Agencies of States (AREAS) on Thursday, Singh said, “Renewable energy is economically viable today. The only rider is storage. Prices of storage will come down over time.”
“We should bring down storage prices by increasing demand and putting up more manufacturing facilities. Once that happens the transition to renewables will be faster. More and more future projects will have storage with them,” he was quoted as saying in a statement issued by the Ministry of New and Renewable Energy on Friday.
“I propose to have RPO for round the clock renewable energy which will encourage storage,” Singh added.
He also urged AREAS to launch a communication campaign for promoting renewable energy.
“We will have to make people aware that this will bring down their expenses on electricity and it is good for environment. For this, Ministry can provide additional corpus fund to AREAS.
“AREAS should organize brainstorming sessions at least once in a quarter to discuss issues of renewable energy sector and come out with possible innovative solutions,” the minister added.
AREAS has been set up following an MNRE initiative to provide a knowledge sharing platform for the renewable energy sector.
The MNRE minister is the Patron of the association, while Secretary, MNRE is the ex-officio president.
All State Nodal Agencies are members of the association.