To make thermal power stations more flexible to accommodate renewable energy, tariffs of coal-based electricity may be raised by as much as Rs 0.45/unit, depending on the quantum of green energy being generated by solar and wind plants. The tariff rise is about 13% of the average all-India price at which states procured non-renewable power in FY18. A recent report titled ‘Flexible operation of thermal power plant for integration of renewable generation’, prepared by the Central Electricity Authority, pointed out that “revision of tariff is essential to make profitable flexible operation of thermal units”.
Flexibility is the extent to which a power system can modify electricity production or consumption in response to variability.