OPINION Supply of quality power at affordable prices is essential for sustained growth of the economy of the country. For further development of the power sector, the Ministry of Power has issued a draft proposal for amendment of Electricity Act, 2003 in the form of draft Electricity Act (Amendment) Bill, 2020. The solar industry's developers faced many challenges, which led to the slow growth rate of the solar industry. The proposed Amendments of electricity act has led to some relief for the solar sector, specifically from the National Renewable Energy Policy, which proposes a minimum percentage of purchase of electricity from hydro sources of energy. Let us understand from our industry experts, the amendments and what benefits will the amendment bring to the solar industry.
RAJESH K MEDIRATTA
Director (Strategy) Indian Energy Exchange Limited
One of the many key focus areas of the proposed amendment is promotion of renewables. The preparation and notification of National Renewable Energy Policy is a welcome and a much-needed step in this direction. Fixation of national level unified RPO traj ectory through this policy and also other directives for renewable growth and market development will certainly boost the investor’ s confidence.
BENE
OF THE AMENDME ELECTRICIT
Penal clause for non-compliance of direction/order of appropriate commission existed earlier too, however, increasing the magnitude of penalty by 100 times will certainly enforce the discipline. The penal provision in case of RPO shortage (kWh) @ Rs 0. 5 in first year, Rs 1 in second year and Rs 1. 5 in third year will further strengthen the RPO compliance. The proposed amendment also addresses the facilitatory steps needed to meet the ambitious target to set up 175 GW of installed generation capacity from Renewable Energy Sources (RES) by 2022 and to further scale it up to 450 GW. In order to achieve this, the provisions mentioned in the draft bill needs to be implemented in its true spirit. Solar power has witnessed tremendous growth in the last 3-4 years. Lot of innovative products like RTC power, Solar+ Evening Peak (storage) etc were floated to create a viable option for both generators and buyers. It is important to mention that IEX, in its endeavour to build competitive markets, has already submitted proposals for the green power market. It will offer market-based instruments for trading of renewable energy. We are closely working with all stakeholders and policy makers to create a vibrant and robust power market for renewables in the country. We have seen globally also that high levels of RE integration was made possible with market-based interventions and products. Proposed amendments of Renewable promotion and stringent RPO enforcement will provide the much-needed visibility to the investors. Providing multiple options including market-based products will facilitate developers to set up capacity and manage their portfolio in the most efficient manner and it will result in creating a sustainable business model for Renewables.
| MAY ISSUE 2020
PG 30
