Karnataka: New solar power policy in the works

BENGALURU: The state government plans to unveil a new solar power policy next month and phase out power purchase agreements (PPAs), which have become problematic for Karnataka because of excess production and must-use clauses.

There are no storage facilities for solar power, and the government finds it difficult to fulfil the rigid requirements of PPAs that were signed long back. At the same time, it has to utilise funds to keep conventional sources alive as a backup.

Officials said that the government was relooking at the solar policy, which was formulated in 2014 and is up for renewal this year.

“The bigger problem for the state is to manage the unreliability factor in renewable energy, in particular solar and wind.