Ministry of New and Renewable Energy working on plan to raise solar power share into grid

With solar power tariffs dipping below thermal power, the government is keen on lowering electricity rates for consumers by mixing a higher share of solar energy

The Ministry of New and Renewable Energy (MNRE) is working on a plan that aims at supplying more solar power into the grid, which in turn would renergise stressed thermal projects, officials said Thursday.

With solar power tariffs dipping below thermal power, the government is keen on lowering electricity rates for consumers by mixing a higher share of solar energy.

“Discussions are taking place under MNRE and we are all in discussion with the ministry to evolve the plan. We have to involve the regulators, buyers and users,” PTC India CMD Deepak Amitabh told reporters here.

He was speaking on the sidelines of an environment and energy conclave organised by the Bengal Chamber of Commerce and Industry.

After haircuts from lenders, a product that clubs higher solar power with fossil fuel power can help revive the stressed power assets, the officials said.

The discoms have also been seeking electricity short-term contracts to eliminate the fixed-cost component, the share of which has gone up in their total power cost, they said.

A recent ASSOCHAM-Grant Thornton study had noted that the country’s power sector was a highly-stressed segment, with loans to the tune of around Rs one lakh crore having turned bad or been recast.

Source: PTI