NSEFI pitches of capping renewables tariff at Rs 3/unit under NTPC, SECI auctions

National Solar Energy Federation of India has urged the government to cap tariff from all renewable energy sources at Rs 3 per unit for auctions by state-owned NTPC and Solar Energy Corporation. The capping will help keeping the renewables tariff lower than Rs 3 per unit.

This will prove to be a remedy for differential treatment of electricity in the country and help in achieving 'one nation, one grid, one renewable, one price', according to National Solar Energy Federation of India (NSEFI). In a recent letter written to Power and New & Renewable Energy Minister R K Singh, NSEFI said, "We propose, 'One Nation, One Grid, One Renewable, One Price' concept. This would mean that all prices discovered through various tendering processes of all renewable energy sources conducted by SECI or NTPC in a financial year, shall be bundled together and One price shall be offered to states".

The body further said, "This will solve their problem of differential treatment of electricity. This would also mean that all sources of renewable energies shall be equally dealt at the grid level and thus would help in better grid management. To induce Discoms to continue buying electricity from renewable energy sources, we may cap such electricity at Rs 3 per unit. However, the prices of electricity may vary for different tender and may be lower than the price mentioned". The NSEFI is of the view that these renewable energy sources complement each other and when combined with battery storage, provides a smooth power curve.

Since the cost of energy from battery storage is high at the moment, India need to explore the opportunities of incentivizing energy sources that are complementing each other, the body said. It cited an instance of wind and solar energy which complement each other as one generates power during the daytime, and the other after sunset.

The body further elaborated that due to the difference in the rate of electricity from various sources of renewable energy, and even within the same sources, states tend to demand the cheapest source of electricity. Therefore, Solar Energy Corporation of India (SECI) or NTPC find difficulties in executing PSAs (power sale agreements) with the state for different tendered prices, it added. The suggestion by the body assumes significance in view of India's ambitious target of having 175 GW of renewables, including 100 GW of solar and 60 GW of wind energy.

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