Renewable energy has created a lot of interest in India!

Renewable energy has created a lot of interest in India and has become a major area of interest for power traders and transmission companies too, says Dr. Rajiv K Mishra, Executive Director, PTC India Ltd. (PTC).

Speaking to Energy Next, Dr. Mishra said, “the renewables have created a lot of interest in the recent times, particularly the solar energy, and we have big plans. Although Renewable purchase obligation (RPO) has to play as a major growth driver, it has its own potential for replacing the conventional sources.”

Talking about the issues with RPO compliance, he said that all the states that have to meet the RPO obligations, either they have tied with NVVN for solar obligations or few are also taking up through own competitive biddings. The competitive bidding route is complicated and has not lived up to the expectation.

“Even if they successfully complete the bidding process, most of the time they land at a situation which is the extremes of the price band quoted by non-serious players, that is a undesirable situation. For example, in NVVN, the discovered price median is around Rs.8.95 for solar power, whereas some of the states who have done competitive bidding, they have even received bids at around Rs. 7. It is quite difficult for states to arrive at a benchmark price, as the purpose is to develop credible solar capacity. At the end of the day it has to be something which will come on ground and which should supply the solar obligation to the state.”

Talking about the role of PTC in renewable energy sector, Dr. Mishra said that the real objective is that the renewable energy projects get commissioned and can deliver electricity, and PTC plays a critical role by ensuring that only good, reliable and strong credible players with strong track records for commissioning of projects are screened and PPAs with firm commitments are entered into. “After ensuring this, we propose to the utilities with assurance that projects would be delivered in time, Utilities get the real benefit and the objective of right price and the delivery at the right time is ensured,” he said.