Power Ministry focusing on enhancing investment by power CPSEs in renewable energy
Energy

Power Ministry focusing on enhancing investment by power CPSEs in renewable energy

During the meeting, decisions were made on Investment Approval & Competitiveness; Policy & Regulatory Issues; and MNRE related issues

  • By ICN Bureau | September 09, 2021

The Union Minister of Power and New and Renewable Energy R. K. Singh is focusing on enhancing investment by power sector CPSEs in renewable energy projects.

A meeting to discuss the Action Plan for enhancing the investment by power sector CPSEs in renewable Energy Projects, was held under the Chairmanship of R. K. Singh, with representatives of all hydro CPSEs, NTPC Ltd., MNRE, and SECI.

During the meeting, decisions were made on Investment Approval & Competitiveness; Policy & Regulatory Issues; and MNRE Related Issues.

Investment Approval & Competitiveness - In-principle approval to be accorded to CPSUs of MoP for bidding of RE power projects at the beginning of year for a predetermined capacity based on strength of their balance sheet; Matter of enhancement of power of investment approval of Board of mini Ratna CPSUs for upward revision to be taken up with the Department of Public Enterprises; and Proposal for reducing hurdle rate IRR for RE Sector from 10% to 8%, to be taken up with the Ministry of Finance.

Policy and Regulatory Issues - Bundling of RE projects with new or untied/high tariff hydro projects to be allowed so as to bring down the tariff of hydro power to consumers; Proposal for waiver of transmission charges for RE capacity under Flexibility Scheme to be considered; No requirement for separate PPAs for RE Power developed under Flexibility Scheme; and separate guidelines to be formulated under Section 63 of The Electricity Act, 2003, for bundling scheme, for setting up RE plants on their own land or a new location.

MNRE Related Issues - Allocation under CPSU Scheme where it was deliberated to allocate the offered capacity amongst CPSUs through a bidding process in some form on an equitable basis; MNRE to examine allowing Solar Power Park developer/individual promoters to participate in TBCB process; and separate policy to be formulated for Floating Solar by MNRE.

MNRE to evolve mechanisms to ensure sanctity of bidding process and PPA by the state government and for rationalizing high Solar Park charges.

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