Amaravati: In a new twist to the ongoing battle over the review of power purchasing agreements (PPAs), the power distribution companies in the state filed a writ petition in the Andhra Pradesh high court challenging the proceedings of the Union ministry of renewable energy to issue of letters of credit (LCs) to solar and wind […]
Discoms get relief as Andhra HC stays Centre’s order
Effective August 1, it has been mandatory for discoms to open/maintain bank guarantee to buy power from gencos. In a move that could undermine the Centre’s efforts to ensure payment discipline among state power distribution entities, the Andhra Pradesh High Court on Wednesday stayed the Union power ministry’s order making it mandatory for the state’s […]
India’s 1.2GW tender pits dispatchable renewables as viable alternative to conventional power
The state enterprise Solar Energy Corporation of India (SECI) issued at the beginning of the month a tender for 1,200MW of renewable power that can be used to alleviate peak demand issued on the grid, in effect mandating the use of energy storage systems (ESS). An invitation has been issued for bids to build, own […]
Average spot power price falls 2 per cent to Rs 3.38 a unit in July
Low price coupled with greater certainty and predictability in procurement continue to make compelling proposition for the power discoms as well as open access consumers to step up their procurement through the IEX, it added New Delhi: Average spot power price dipped 2 per cent to Rs 3.38 per unit in July at the Indian […]
Discoms to pay full tariff during non-supply period to renewable gencos: MNRE
Power discoms pay fixed charges or infrastructure cost to electricity generation companies during the non-supply period under the power purchase agreements (PPA). NEW DELHI: Power distribution companies would have to pay the agreed full tariff to renewable energy producers during the period of non-supply of electricity, the government said on Wednesday. Power discoms pay fixed […]
Rooftop solar power could be a game-changer for India despite challenges: Here is why
The existing fragmented growth of solar rooftop is largely attributable to institutional and commercial consumers. Discoms’ and consumers’ reluctance to adopt rooftop solar may be attributable to the legal framework of the distribution business. India’s solar sector has seen a spectacular run in the last four years, largely attributable to its ambitious renewable energy targets […]
Representation for creating a fund for providing liquidity to State Discoms and thereby to Solar Power Producers
Representation for creating a fund for providing liquidity to State Discoms and thereby to Solar Power Producers. For more information please see below link:
No power supply to discoms without bank guarantees
The move comes on the backdrop of the deep financial stress being faced by the power industry due to non-payment of dues The Union power ministry has directed electricity generators to snap supplies to state distribution companies which have failed to open or maintain bank guarantees. Following this directive, the states will have no option […]
Govt bars defaulting discoms from short-term power purchases in open market
Letter of Credit to be mandatorily used as payment security mechanism for long-term PPAs signed by loss-making discoms The Centre in a bold move to discipline the state-owned loss making power distribution companies (discoms) announced that the ‘Letter of Credit’ should be mandatorily followed as a payment security mechanism. At the same time, it also […]
Govt puts in place payment security mechanism for discoms to buy power
In a big relief to the stressed power sector, the government Friday approved the proposal for implementation of a payment security mechanism for purchase of electricity by distribution companies from generating firms. The power ministry has made it mandatory for discoms to open and maintain adequate letter of credit (LC) as payment security mechanism under […]