The first obstacle it anticipates is resistance from states. The areas that are electrified by NTPC may get non-stop supply as opposed to those where power reaches only for 6-10 hours.
The areas that are electrified by NTPC may get non-stop supply as opposed to those where power reaches only for 6-10 hours.
The state-run company is clear that states will have to come on board for procuring solar energy for it to take off as per plan.
Delhi buys 90% of its power through long-term power purchase agreements at Rs 4.5-5 per unit, which does not allow the state to buy cheaper power from the exchanges.
To begin with, the state seeks to do away with expensive power purchase agreements with generators, increased use of IT.
NTPC’s problem is not isolated but part of larger inability of Modi’s pet project of installing 100,000 MW of solar power by 2022 despite budget announcement.
Last year, the peak summer demand was 5,900 Mw. The power distribution arms of Reliance Infrastructure and Tata Power supply electricity to Delhi.
Cash crunch at power distribution of arm of Reliance Infra, Tata Power may force discoms to cut power
Last year, the Delhi Electricity Regulatory Commission had approved the charge of up to 7% but withdrew it the next day.
The companies are seeking Power Purchase Adjustment Charges (PPAC) to compensate them for fluctuations in fuel cost.
The reason for this is that in case of green ‘use of proceeds’ bond, proceeds are raised for specific green projects, but repayment is tied to the issuer, not the success of the projects.
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