India's clean-energy industry opposes the revocation due to delays
Sethuraman N R & Sarita Chaganti Sing
NEW DELHI (Jan 15) - India’s renewable energy groups objected to a proposed regulatory measure that could strip developers from interstate transmission system connectivity if they fail to sign long-term power purchasing agreements in a timely manner, according?to letters sent?to India’s power regulator.
The groups said that the Central Electricity Regulatory Commission (CERC)'s move would unfairly punish projects that are stalled due to reasons outside their control.
According to a CERC staff document published in November, more than 45 GW renewable capacity has grid connectivity on the basis of letters?of award. However, it has not yet progressed into power purchase agreements and is blocking transmission bays for new projects.
The paper suggested options, such as auctioning capacity surrendered and declaring connectivity surrendered when PPAs remain unsigned for over 12 months.
India wants to add 500 GW non-fossil power by 2030. However, delays in project execution and transmission issues have become major obstacles.
Transmission?network - about 495,000 circuit kilometers - is struggling to keep up with the rapid increase in renewable generation.
The National Solar Energy Federation of India argued that auctioning off vacated grid connectivity at a premium will increase tariffs and favor financially stronger players. Grid access "cannot be traded."
The slow tariff adoption and approval process at state distribution companies is a major cause of delays in PPAs, according to the report.
Wind-sector associations, such as the Indian Wind Turbine Manufacturers Association (IWTMA) and the Indian Wind Energy Association (IWEA), have said that the proposed deadline of 18 months to complete wind-projects is unrealistic.
The CERC noted that the manufacture of turbines and other equipment is slow, and they are frequently imported. This adds to the delays. They asked CERC to give 24-30 months to complete projects, instead of the 18-month limit.
Solar Energy Corporation of India, a government tendering agency, also opposes premium-based auctions. They warn that they can inflate future prices.
The SECI proposed reallocating connectivity?based on project readyness -- land, financial close and equipment status.
The industry groups asked CERC to stop penalising developers and instead focus on ensuring that contracts are signed in a timely manner by working with the renewable energy and power ministries. (Reporting and editing by Shreya Biwas; Sethuraman N.R.)
(source: Reuters)
