The tariff problem in renewable energy needs to be fixed properly for ramping up our renewable generation. Discuss (200 Words)
Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Power generation tariffs in India comprise two parts. The first part is a fixed component the cost that a generator incurs. This is not linked to the amount of power generated. The second part varies with the quantum of generation. The two-part tariff has been in vogue since 1992.
· It applies to thermal and hydro generation. It does not apply to renewable generation solar, wind, and also nuclear.
· Under the two-part formula, the variable cost is calculated on the basis prescribed by the regulatory commissions.
· In the case of hydropower generation, the fact is that we don’t have any valuation for water as we have for coal or gas and hence, hydro generators do not have any variable cost of generation.
· On the other hand, solar and wind generation account for about 10 per cent of the generation today and going by the statement delivered during COP26 in Glasgow.
· If we are serious about having a renewable generating capacity of 450-500 GW by 2030, we need to create a proper environment and ensure adequate returns to invite fresh investments into renewable generation.
· The switch from a single to a two-part tariff structure for renewables has to be made right now as we are at the cusp of ramping up our renewable generation and it takes time for matters to get streamlined as we have seen in the past.
