Home India T.N. pitches for mechanism to compensate discoms
T.N. pitches for mechanism to compensate discoms

T.N. pitches for mechanism to compensate discoms

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‘Backing down to accommodate green energy causing financial strain’

The State government has sought a compensation mechanism for discoms backing down (unplugging power from the State grid) to accommodate renewable energy.

The State also pointed out that discoms have to pay fixed charges on conventional power and such backing down imposes additional burden on them, according to an agenda paper released ahead of the two-day conference of power ministers of States to be held in New Delhi on May 3 and May 4.

Tamil Nadu has also suggested that in such a scenario, discoms should be adequately compensated and assistance can be provided under the Power System Development Fund (PSDF).

The State has also pointed out that during the ‘wind season’ last year, it has absorbed 10 billion units of power by backing down conventional power. This year, the State has already been using the available 2000-3000 MW of wind power for meeting the peak summer demand.

Sub-group suggested

According to the agenda paper, the Union Minister for Power, New and Renewable Energy has suggested a formation of sub-group to look into the issue.

The sub-group will have representations from Tamil Nadu, Ministry of Power, Central Electricity Authority, NTPC and Power System Operation Corporation Ltd, according to the paper.

The sub-group will study the financial impact on discoms on backing down conventional power, and prepare a suitable scheme for compensation, it added.

The two-day conference would review the implementation of various ongoing schemes/programmes and deliberate on a host of issues pertaining to power, coal, renewable energy and mines sectors.

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

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