Renewable energy: Govt’s proposed ‘bundling’ scheme to aid power companies

The power industry feels that the ministry of new and renewable energy’s (MNRE’s) proposed scheme to supply round-the-clock (RTC) power from wind and solar plants would also be beneficial to stressed thermal power plants, which are stranded due to lack of power purchase agreements (PPAs). The scheme is seen to provide relief to the bankers as it would provide opportunity for stressed thermal assets to find buyers for their power, thereby reducing the quantum of non-performing assets.

The proposed 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).