Union minister for new and renewable energy Pralhad Joshi on Monday said a decision on stuck renewable energy projects that need to be cancelled will be taken within the next 45 days, for which an assessment is still underway.
Joshi added that slowing the pace of renewable energy tenders could help ease the current overcapacity in India’s solar module manufacturing sector.
“I have told my officers, after a recent meeting with Ministry of Power, to assess renewable energy projects on case-to-case basis. In about 1.5 months all details will be ready after which we will let you know," he said in an interaction with reporters on the sidelines of an event in Rewari district, Haryana.
On November 13, Moneycontrol reported that the government, in a first, is planning to temporarily slowdown the pace of RE tenders till the next fiscal.
By moderating demand growth temporarily, manufacturers would have time to align production with actual market needs, improving stability and pricing in the industry, Joshi explained.
There are over 40 gigawatts (GW) of renewable energy projects for which letter of awards have been issued but either power sale agreements (PSAs) or power purchase agreements (PPAs) have not been signed till date.
A Power Sale Agreement (PSA) is the contract under which a seller supplies electricity, while a Power Purchase Agreement (PPA) is the contract under which a buyer procures electricity.
“Developers also need to understand that we are no longer in the age where plain vanilla solar projects would work because cost of renewable energy with battery energy storage is also becoming increasingly attractive at about Rs 3.5 per unit. So, that will also be considered in the assessment,” Joshi said.
Green Energy Corridor Phase 3
The Union minister also said that the government is working on the third phase of green energy corridor (GEC) for evacuation of renewable energy and integration with the grid.
“We are in talks with states and a final decision on which states will be covered for RE evacuation in phase 3 is yet to be decided,” Joshi said.
Green Energy Corridor Phase 1 covers Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu, developing about 9,700 circuit-km of transmission lines and 22,600 MVA of substations to evacuate nearly 24 GW of renewable energy.
GEC Phase 2 expands the network across Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh, adding around 10,750 circuit-km of lines and 27,500 MVA of substations to integrate roughly 20 GW of new renewable capacity.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
