The Ministry of New and Renewable Energy (MNRE) has asked power regulators to favour solar power over thermal power in situations of back downs.
This comes after some solar power developers complained about back downs for various reasons in certain States, including Tamil Nadu.
A recent report from India Ratings said Tamil Nadu, a frontrunner in renewable energy, widely curtailed the grid availability in the last three years and the phenomenon appeared to have spread to Rajasthan in 2016 and 2017.
In his letter to the Central Electricity Regulatory Commission (CERC), Tarun Kapoor, joint secretary of MNRE, said some solar developers had been asked to back down by load dispatch centres. “Solar power projects have must-run status, as there is no fuel cost and if any backing down is to be done, thermal projects should be asked to back down so that some fuel is saved,” he wrote in his letter, which was also marked to Power Secretaries of all states.
In India, thermal projects enjoy two-part tariff, unlike solar power. One fixed tariff is paid even if the thermal plant is not producing power. When the thermal plant produces power, it is paid a variable tariff over and above the fixed tariff.
Mr. Kapoor pointed out that solar power projects do not get the benefit of two-part tariff and are not paid anything for the loss of energy they suffer in case of back down.
“This can make solar power unattractive particularly when projects are being allotted through competitive bidding and tariffs have come down drastically,” he said.
He noted that some solar power developers had started asking for two-part tariff, but it would be difficult to oblige as most of the cost in solar power project is fixed.
He called for clear regulations by appropriate commissions to enforce must-run status for solar power project and they should be paid full tariff if they are forced to back down in rare cases.
Mr. Kapoor requested that the issue be placed before Forum of Regulators so that a consensus could be reached over the issue.
Chief Minister Jayalalithaa recently urged Prime Minister Narendra Modi to speed up establishment of an inter-State green energy corridor to enable the State to sell surplus renewable energy to other States.
Solar power generators complain of being asked to back down by load dispatch centres
