Govt amends norms; power producers can replace thermal power with renewables under existing PPAs

In a significant move aimed at gradually reducing thermal power generation, the government has amended norms to allow power producers to bundle renewable energy under existing power purchase agreements. The Ministries of Power, and New and Renewable Energy have revised the relevant norms as part of the larger efforts to have 500 GW of clean energy generation capacity by 2030.

In a statement on Tuesday, the power ministry said the revised norms would enable replacement of fossil fuels-based energy generation with energy from renewable sources under existing Power Purchase Agreements (PPAs).
The two ministries have issued “revised guidelines providing for thermal generation companies to set up renewable energy generation capacity either by themselves or through developers by open bids and supplying it to the consumers under the existing PPAs,” the statement said.