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Renewable energy: Solar makers to oppose MERC draft regulations

Renewable energy: Solar makers to oppose MERC draft regulations

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Nagpur : The Maharashtra Electricity Regulatory Commission (MERC) on October 26 published the draft version of its tariff determination regulation order for renewable projects commissioned in the state for the generation and sale of electricity to distribution licensees. It has invited suggestions and objections by November 18.
As per the draft, the residents who have installed rooftop solar panels and generate excess units by renewable energy system will be at a loss.

People in general are angered by such one-sided proposed policy. According to the new policy, all the investments for solar installations will be done by the consumer but still, s/he will have to purchase electricity from MSEDCL at thrice the price at which they will be supplying the power back to MSEDCL.

Vidarbha chapter of Maharashtra Solar Manufacturers Association (MASMA) has geared up to oppose MERC’s move.

Saket Suri, representative of Vidarbha chapter of MASMA, said the draft rule, especially the commercial arrangements, will discourage solar power generation in the state. Hence, MASMA is approaching green activists, NGOs, and industrial associations across the state to submit objections.

Suri said the new draft regulation for renewable energy prepared by the MERC is set to benefit the discom.

The gist of the draft rule is that if a consumer generates excess power from solar panels, the MSEDCL will purchase at a cheaper rate of Rs3, while it will charge Rs12 per unit from a similar consumer.

The proposed regulations will discourage solar installations and create lots of difficulties for people across the state. As per the draft rule, electricity costs would surge and will increase production as well as operational costs in industries, which will definitely increase inflation, said MASMA representative Amit Deotale.

“Mass employment-generating power-sensitive industries will shift to neighbouring states with better renewable energy policies leading to joblessness. Increased electricity cost would discourage people from buying electric vehicles which will increase our dependence on highly polluting fuel guzzling petrol, diesel vehicles,” he said.

“Even medium and small scale enterprises, the backbone of our economy, will be the worst hit by the new policy if enforced,” he added.

The target for Maharashtra for generating power through solar panels is 4,000MW. But currently, it is generating only 266MW. This new draft will also defeat Prime Minister Narendra Modi’s pledge at the UN Climate Action Summit 2019 to increase renewable energy capacity to 175GW by 2022 and further to 450GW.

Source : timesofindia
Anand Gupta Editor - EQ Int'l Media Network

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