Re. one-per-unit incentive likely for off-grid solar power

Regulatory Commission to hold public hearing in Kochi on July 2

July 01, 2014 11:04 am | Updated 11:04 am IST - KOCHI

: The Kerala State Electricity Regulatory Commission, which has issued a set of regulations on grid-interactive solar power generation, has also proposed an incentive of Re.1 per unit of power for off-grid solar power generators. The incentive has been proposed for a period of five years effective from the current financial year.

The commission is holding a public hearing in Kochi on July 2. The public could also submit written suggestions to the commission at its Thiruvananthapuram address by July 13, said information posted on the Regulatory Commission’s website.

A public hearing will be held in the State capital on July 4.

The commission has posted a discussion paper on incentives for off-grid captive solar energy systems on its website.

Commission sources told The Hindu on Monday that the aim of the incentive and the guidelines on grid-linked solar power generation was to encourage large-scale users to switch to renewable sources. “It is expected that more consumers and distribution licensees will install more solar energy systems,” said a press statement by the Regulatory Commission.

The press release said that grid-interactive solar power will have benefits for the generator and distribution licensees like the Kerala State Electricity Board. The commission described it as a “win-win” situation for both the producer and the distributor.

While grid-linked solar power generation will reduce the cost of storage for the producer, the distributor stands to gain from lower transmission losses.

Transmission loss in the Kerala system is 15 per cent, which means for every 100 units of energy to be consumed, the distributor has to produce 115 units of power, said the commission press release. The distributor also has the advantage of solar renewable purchase obligation for the solar power generated by the consumer.

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