Professional Documents
Culture Documents
Meeting these targets would require mainstreaming renewables through concise legal provisions
1
http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf http://www.forumofregulators.gov.in/Data/Reports/Final_Report_FOR_RPO_Study.pdf
2.03
2.75
1.58
1.74
1.27 0.34
https://www.recregistryindia.in/
http://www.nrel.gov/docs/fy11osti/50225.pdf
REC Mechanism
PPA at APPC Rates are eligible to Register under REC as per CERC / State REC Regulations Some RECs are insisting on supply of Power under FIT ( Up to 50% of Capacity) and permitting only the balance under APPC Also under APPC - PPA condition the APPC in some States are kept firm with out Annual Reset Even under APPC the period is limited to 10 years for Price while the PPA is for 20 years leaving un-certainty on realisation post 10 years It is suggested that developers as envisaged in regulations is given the option of PPA under FIT/APPC+REC for their projects
Investment decisions in the current environment of interest rates / tax law changes Need visible revenue streams for Financial Closure/ Project Viability State specific changes on CERC Guidelines negates the need to improve RE Capacity Additions General Practice APPC by definition is average of Purchase Price of power in the preceding year and should be re-set annually As investment decisions are made ahead of actual commissioning of Projects Typically 18-24 months ahead with long term perspective it is essential uniform and clear policies are in place to encourage investments in RE
http://www.nrel.gov/docs/fy11osti/50225.pdf
Competitive Bidding
Certainty of power generation in conventional thermal and predictability of solar is not available in wind power generation WRA (wind resource assessment) varies across pockets within States and across country, it needs assessment over long tenure to reasonably estimate PLF State should look to initiate competitive bidding only after acquiring land and sharing the WRA data for at least 3years with the bidders to avoid speculative bidding Competitive bidding in wind has not been successful in most parts of the world
Inappropriate to take cue from solar bidding Solar radiation assessment can be done with fair accuracy based on satellite data; Specific location is not an issue across state unlike wind International experience: NREL, US Dept. of Energy, conclusion1 based on competitive biddings of Brazil, New Jersey, California and China, is Speculative underbidding during the auction process can lead to high attrition rates, which may jeopardize this certainty and lead to fewer projects being built than were initially contracted Unintended consequences: Where material financial repercussions are not associated with an auction, bids may turn out to be inadequate to make projects viable
Implementation of competitive bidding would require putting in place well defined procedure & evaluation methodology; at the same time taking cognizance of wind related issues pertaining to resource assessment and site availability 1 http://www.nrel.gov/docs/fy11osti/50225.pdf
Other issues/suggestions
GBI
GBI to be continued till CERC tariff methodology is adopted by States for APPC/FIT Extension at minimum Re 1/unit for 12th Plan period to ensure a minimum post tax return of 16% on Equity. Present returns on FIT(without GBI) way below government and CERC guidelines
Preparation of comprehensive wind atlas based on revised technical assessments Central support for evacuation infrastructure which presently is the biggest bottleneck for RE promotion. Transparent Policy to facilitate approval/availability of variety of turbines/ new technologies Inter-state transaction of wind power Applicability/impact of changes in tax, regulatory & policy regime prospectively to existing PPAs. e.g. MAT Streamlining the forest land allocation process for wind projects , to enable cut long and cumbersome time. Policy guidelines for forest land assignments in favour of lenders