UP discoms not to sign new coal power contracts for three years
New Delhi: Power distribution companies from Uttar Pradesh will not sign new long-term coal based power contracts for the next three years to avoid the burden of fixed costs and to optimise their current agreements.
The companies will instead contract long-term renewable energy through tariff-based competitive bidding to fulfil their renewable purchase obligations.
Industry experts said, though UP accounts for around 10% of the country’s power demand, the decision of the state government will not adversely affect power generators since there have been no long-term agreements in the industry for almost a decade.
