Uniform tariff for renewable energy on the anvil
renewable energy capacities that are auctioned through designated agencies, which will help make the electricity tariff uniform for power distribution companies.
The plan is to create separate pools for solar, wind, hybrid, and other projects based on the technologies for around five years, people aware of the development told ET. A weighted average of the tariffs from the capacities in the pool will be determined, which could be revised monthly, they said.
«Final modalities are being worked out now, while guidelines have already been issued,» one of the persons said.
The power ministry had in January amended the Electricity Rules to facilitate the tariff pooling mechanism.
In the pooling system, renewable energy implementing agencies will procure renewable power and supply to distribution companies at a uniform tariff. This will not have any impact on the tariffs for the renewable energy developers.
This means all upcoming projects and those where power purchase agreements have not been signed will be bundled.
With the pooling, the incentive or disincentive for distribution companies to refuse a power purchase agreement goes away, the person quoted above said.
When tariffs of solar and wind projects were falling with each auction, distribution companies delayed or cancelled signing power purchase agreements (PPAs) in anticipation of rates declining further, which also delayed the projects.
«To avoid non-signing of PPAs for projects which have higher tariff in auctions, pooling has been decided,» the person said.
However, solar energy tariffs discovered in auctions by central agencies have risen in the last few months.
«While the discovered solar tariffs in the last six months have been higher, with module
