Budget 2018: Will Arun Jaitley meet power industry's Budget expectations?
Worthy of attention ahead of Budget 2018 is the fact that the recent times have been very exciting for India’s power sector, especially with respect to the renewables segment. New generation capacity addition this year came predominantly from non-carbon sources – over 80% came from renewables, hydro and nuclear alone. Here are a snapshot of the power sector and its expectations from the Union Budget 2018-19: Key developments New generation capacity addition this year came predominantly from non-carbon sources (over 80% from renewables, hydro and nuclear).
The main renewable energy sources, wind and solar, are now contracted solely viaauctions. This hasdelivered record low tariffs (Rs 2.44 per kWh for solar). A roadmap was announced to procureabout 110 Gw renewable energy,over coming months up to 2020. This pipeline of tenders offers a big growth opportunity for manufacturers, investors, and developers. New policies, from rural electrification to transport electrification, will reshape energy use and boost demand for electricity. Key issues Lower margins in highly competitive auctions can deter new investments, while utilities may postpone signing new PPAs if tariffs go up. This Catch-22 situation can impair a healthy growth of the renewable energy industry. Transmission connectivity is a fast-growing concern. Upcoming bids have fewer options of substations to which they can connect. That can drive up costs. Distribution utilities facing pressures of competition must invest in new technologies to reduce operating costs and cut losses. Stranded assets and underperforming assets need not only financial resolution but also structural and FOR MORE CLICK HERE. . .
ARTICLE SOURCE- BUSINESS STANDARD.