18/06/2021 - Renewable Energy

Please review  mam / sir thanks

KEY POINTS

·        In order to incentivise renewable energy, the Indian Electricity Act 2003, gave legal teeth to Renewable Purchase Obligations that mandate all electricity distribution licensees must purchase or produce a minimum specified quantity of their electricity from renewable energy sources.

·        The discoms continue to incur “fixed costs” even when they do not draw power. In quite a few cases, the fixed costs paid by discoms to coal-based gencos may actually be more than the current prices of solar or wind power per kWh.

·        This then leads us to question the continued the relevance of RPOs and RECs and the option of evolving a more logical and robust system that can expedite decarbonisation of India’s power sector by 2050

·        This new system could be called Power Decarbonisation Standards. The system would set a progressive threshold for decrease in purchase of coal-based power and a corresponding increase in purchase and absorption of renewable power by discoms.

·        The Power Decarbonisation Standards, if adopted, would also ensure that a comprehensive plan is put in place to limit the setting up of new coal plants

·        These can also be designated as Carbon Credit Certificates (CCCs) to be granted to the discoms by the regulators for annual reduction in purchase of coal power after a cut-off date.

·        These CCCs could also become market-based financial instruments that can be traded domestically to start with, and, later on, internationally when the markets mature.

Please review

Plz review