Mr. P P Gupta Managing Director, Techno Electric & Engineering Company at RPR 2012, 23-26 August, Goa, India

2.  Renewables is no more a marginal element in generation
 As per 12th Plan estimate1, planned conventional generation capacity addition is 75785 MW &
envisaged capacity addition of Re based power plant is 30500 MW
 Wind would continue to spearhead RE capacity additions
 As per FOR study2, envisaged annual RE capacity addition during the 12th Plan period would be:
Source FY12 FY13 FY14 FY15 FY16 FY17
Wind 3,178 3,769 3,988 3,935 3,883 3,680
Solar 391 1,060 1,585 2,005 2,055 2,o75
SHP 504 360 474 682 824 460
Biomass 123 850 850 850 850 850
Total 4,197 6.039 6,897 7,472 7,611 7,695
1http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf
2http:/www.forumofregulators.gov.in/Data/Reports/Final_Report_FOR_RPO_Study.pdf
 By 2025 the renewable capacity in the country is likely to be 100,000 MW as against
conventional power capacity of about 3,25,000 MW.
 The capacity addition in renewable power therefore will be larger than conventional power for
every plan (14th plan onward)

3. 1) Amendment in EA2003 / Separate RE Law.
2) Specification of RPO target in the Act/RE Law binding
States.
3) Uniform REC Regulations for States; to be derived from
the ACT/LAW itself.
4) Meeting these targets would require mainstreaming
renewables through concise legal provisions.
5) Member-RE in SERCs, CERC & CEA and other policy
making bodies at center and state level/ utilities.
6) Promotion of Open Access- RE power should be exempt
from cross subsidy surcharge and there should be center
level assistance towards wheeling/ transmission charges.

4. Key Points Backdrop
1) Centralized purchase of REC by There is no deterrence for not meeting
centre level agency in case of non- ‘mandatory’ RPO.
fulfillment of RPO and adjustment  Not even a single State has enforced penalty
in fund allocation to respective clause.
state.
REC Market1 has started witnessing reduced
2) Quarterly compliance of RPO. demand.
3) Separate SLDC or RLDC to be  The buy bid has fallen to lowest level in last
created for non-conventional year; further buy-sell ratio is at all time low:
power.
4) REC Floor price projection for next
10 years (to facilitate bankability of
RECs).
5) Only new capacities across RE
technologies should be allowed
participation in REC mechanism.
Growth of renewable sector would be contingent on facilitating a market
for RE based power; creation of demand through enforcing of RPO and
creation of supply through assuring appropriate returns to investors
1https://www.recregistryindia.in

5.  Key Points  Backdrop
1) Certainly of power solar/thermal is not Inappropriate to take cue from solar bidding
available in wind power generation.  Solar radiation assessment can be done with fair
2) WAR (wind resource assessment) varies accuracy based on satellite data;
across pockets within States and it needs International experience: NREL, US Dept. of
assessment over long tenure to reasonably Energy. Conclusion1 based on competitive
estimate PLF. biddings of Brazil, New Jersey, California and
China, is
3) State should initiate competitive bidding
 “Speculative underbidding during the auction
after acquiring land and sharing the WRA
process can lead to high attrition rates, which may
data with the bidders to avoid speculative jeopardize this certainty and lead to fewer projects
bidding. being built than were initially contracted”
4) Competitive bidding in wind has not been  “Unintended consequences: Where material
successful in most parts of the world. financial repercussions are not associated with an
auction, bids may turn out to be inadequate to
make projects viable”
Implementation of competitive bidding would require putting in place well
defined procedure & evaluation methodology; at the same time taking cognizance
of wing related issue pertaining to resource assessment and site availability
1http://www.nrel.gov/docs/fy11osti/50225.pdf

6. 1) Utilities and State Load Despatch Centre must adhere to the Grid
Code to have a “must run a status” for renewable power projects as
they are seasonal and depend on nature.
2) There should be a compensation mechanism from State DISCOMs, if
turbines are switched off during the peak season, as renewables are
seasonal in nature.
3) Quick Implementation of synchronizing Southern Grid with National
Grid.
4) The RE Corridor Kanyakumari to Delhi Proposed by Power grid to be
in operation as short time as possible to link Southern grid fully with
National Grid.
5) Set-up SLDC/RLDC separately for non-conventional Energy to
facilitate forecasting/ scheduling of power (non firm to semi firm).

7. 1) Wheeling and Banking must be encouraged in all
states as a national programme and sell it under
Group Captive.
2) Wheeling and Banking charges may be mutually
arrived upon in such a manner that to place a
burden either on the generator or on the utility.
3) RE law should enable this mandatorily.

8. 1) DISCOM’s must pay Renewable Power within 30
days of invoice failing which, it must be paid with
interest of 12%.
2) DISCOMs/ PSU Utilities to be rebuilt as
financially viable entities.

9.  GBI to be continued till CERC tariff methodology is adopted by States for
APPC/FIT
Extension at minimum Re 1/unit for 12th Plan period as per crisic report.
 Applicability/impact of changes in regulatory & policy regime prospectively to
existing PPAs.
 Preparation of wind/ solar atlas
 Long term RPO trajectories for all States.
 Policy to facilitate availability of variety of turbines/ new technologies. (off.
shore)
 Inter-state transaction of renewable power
 Streamlining the process of wind project in forest land/areas.

10. Thank You