Though an evident fact that India’s addition in the rate of renewable capacity additions have improved by leaps especially in the solar segment as indeed the “sun is shining” for entire value chain players given the impetus received from GoI for having the target to set 165 GW of RE capacity and 100 GW of solar power plants in the country by 2022. Having even achieved 50 – 60% capacity of the planned values there would be huge quantum of power available up for sale, given the precarious situation of the finances of the discoms the project developers deem the “direct power purchase agreements” more fit in order to wish away with risks associated with long-term agreements with discoms. The another advantage in lieu with the third-party power purchase agreements is degree of revenue discovered for developers as against with Feed-in-Tariff (FiT) mechanism model.
Key Queries Resolved
- Which state has least regulatory barriers or least cross-subsidy surcharge (CSS) applicable to bulk buyers
- Whether the tariff discovered in third-party power sales agreements sustainable for long-term i.e. for a period of 10-15 years?
- What are the various power procurement models which shall be most beneficial given the current regulatory paradigm and policy environment in India?
- Why only renewable players are reaping benefits of direct power purchase agreements and why not the thermal power producers under independent and captive category enjoy the same?
- Which region is most suitable for affecting the direct power purchase agreements having the largest cluster of industries, corporates and bulk consumers?