Boost to renewable energy: MNRE proposes ‘bundling’ scheme

In order to provide a leg-up to the renewable energy sector, the ministry of new and renewable energy (MNRE) has come out with a draft framework for a scheme to supply round-the-clock (RTC) power from wind and solar plants. The scheme proposes to sell renewable energy and thermal power together in a ‘bundle’ so that buyers can get the assurance of receiving firm uninterrupted electricity supply.

The aim of the scheme is to address the issues of intermittency, limited hours of supply and low capacity utilisations of renewable power plants and make them more attractive for state-owned power distribution companies (discoms). MNRE has proposed that under this scheme, a government authorised intermediary agency would carry out auctions where power sellers can quote single composite tariffs for renewable energy-based power combined with one single thermal fuel source (coal or gas). The intermediary agency would then sell the power to discoms. Stakeholders have been asked to provide their feedback on the draft scheme to MNRE by January 16.