NEW DELHI
:
Because the backlog of unsigned energy buy agreements (PPAs) for renewable energy piles up, the Union ministry of recent and renewable vitality is making efforts to get states to signal PPAs and energy sale agreements.
The Centre has already contacted states urging them to speed up the signing of PPAs, and Union minister for brand spanking new and renewable vitality Pralhad Joshi is about to fulfill with chief ministers one-on-one on the problems of unsigned PPAs, stated two individuals near the event.
Certainly one of them stated the ministry’s latest month-to-month conferences with energy turbines and different stakeholders have additionally centered on the problem, with a number of proposals being put forth, together with getting prior commitments from states for PPAs earlier than arising with new bids and the prospects of halting new bids earlier than a substantial quantity of the unsigned energy sale agreements are signed.
Energy builders signal PPAs with procurers, who signal energy sale agreements (PSAs) with distributors. Energy procurers embrace corporations resembling state-run Photo voltaic Power Corp. of India (SECI), NTPC, NHPC, and SJVN.
Unutilized energy
At the moment, round 50 gigawatts (GW) of renewable vitality capability stays unutilized because of the non-signing of PPAs and PSAs.
“The Centre has already raised the problem with states, and within the coming weeks, the Union minister would have one-on-one conferences with state chief ministers on the identical,” the particular person stated.
“In a latest assembly, it was mentioned whether or not new bids needs to be introduced earlier than signing of recent bids. It was additionally mentioned that the renewable vitality implementation businesses (REIA) must design new bids solely after a dedication from states on procurement of energy,” stated the second particular person, including that business stakeholders have raised considerations over the issuance of recent bids with out the signing of PPAs for older bids.
Business stakeholders have additionally sought a waiver of transmission costs for tasks underneath pending PPAs. At the moment, transmission costs are waived for 25 years for renewable vitality tasks, resembling photo voltaic, wind, and hybrid tasks, and battery vitality and pump-storage tasks commissioned earlier than 30 June 2025.
Energy producers have already sought an extension of the waiver on inter-state transmission costs for renewable vitality till 2030 to assist additional the adoption of inexperienced vitality within the nation.
The delay in signing PPAs and PSAs comes at a time when the Centre has raised the goal for tendering inexperienced energy tasks to 50GW yearly until 2027-28. On 15 August, Prime Minister Narendra Modi reaffirmed India’s formidable purpose to attain 500GW of non-fossil-based vitality capability by 2030, up from about 218GW now. Additional delays in signing agreements might make energy from older tasks unattractive, as newer ones with decrease tariffs hold coming on-line.
Central push
In a latest interplay with the media, Joshi stated the Centre is in talks with states to get them to signal extra PPAs for inexperienced energy and hoped that the signing of the pending PPAs will choose up tempo.
“We’re working with state governments and the involved discoms. We’re constantly interacting; due to the (parliament) session in March, we now have not been capable of work together additional. However earlier than March, I’ve interacted, and secretary after which joint secretary, we’re all working collectively at our respective ranges, and we’re working with states,” he stated.
The minister stated states are understanding that the requirement of renewable vitality together with typical vitality and the upcoming implementation of the renewable buy obligations (RPO) would additionally power states to signal PPAs and procure inexperienced energy.
A November JM Monetary examine of 357 renewable vitality tasks confirmed that 95GW of cumulative capability was awarded from April 2022 to October 2024, whereas about 55GW of capability remains to be awaiting the signing of PPAs. The report stated that, on common, it takes 8-10 months to finalize a PPA.
It famous that there’s a rising choice for hybrid and storage-backed photo voltaic tasks over standalone photo voltaic tasks. Additional, discoms are additionally cautious about future demand uncertainty.
The federal government has additionally mandated a minimal of two-hour built-in battery capability for all photo voltaic undertaking bids, which is anticipated to usher in demand for future tasks. In 2024-25, tasks with a complete capability of 25GW have been put in, an all-time excessive annual set up of inexperienced energy within the nation.
Queries mailed to the Union ministry of recent and renewable vitality remained unanswered until press time.
