Central Government notifies the Tariff policy in continuation of the National Electricity Policy (NEP)

Key highlights related to Renewables

1. No Inter-state transmission charges

2. Generating company proposing to establish a coal/lignite based thermal generating station after a specified date shall be required to establish a renewable energy generating station of at least 10% of the generating capacity of the thermal generating station. The renewable energy produced by each generator may be bundled with its thermal generation for the purpose of tariff determination.In case a distribution company procures this renewable power, then this would be considered by the SERCs to meet the RPO of the distribution company. i.e. 4000 MW Coal = 400 MW Renewables

3. In case any existing coal and lignite based thermal power generating station, with the concurrence of power procurers under the existing Power Purchase Agreements, chooses to setup additional renewable energy generating capacity, the energy produced from there shall be allowed to be bundled and pass through shall be allowed in such cases by the Appropriate Commission and the Obligated Entities who finally buy such power shall account the same towards their renewable purchase obligations.

4. Renewable Energy procurement by distribution companies shall be done at preferential tariffs determined by the Appropriate Commission.

5. Such procurement by Distribution Licensees for future requirements shall be done, as far as possible, through competitive bidding process

6. The tariff could be increased progressively in a back-loaded manner over the life cycle of such a generating plant.

7. SERCs should, mandate smart meters for all industrial and commercial consumers

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About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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