MNRE asks State Utilities to Issue Wind, Solar Tender

With most states falling behind their renewable purchase obligation (RPO) targets, MNRE has given out these instructions to state power utilities.

Ministry of New and Renewable Energy (MNRE) has instructed state power utilities to issue tenders for solar and wind energy instead of depending on central agencies for meeting their renewable targets.

With most states falling behind their renewable purchase obligation (RPO) targets, MNRE has given out these instructions to state power utilities. The target is of generating 17% of electricity in 2018-2019 through renewable energy, whereas in April-September period only 10% of that target has been achieved.

“Finally, it is the state which is procuring power, so it’s better that they issue tenders on their own. States are better aware of what tariffs they can afford to purchase renewable energy,” an official told.

While there are some states which are doing their part to maximize their share of renewable energy in their energy mix, like Maharashtra, Uttar Pradesh, Gujarat and Tamil Nadu.

In a recent communication with the state authorities, MNRE secretary Anand Kumar lamented that the states are not using their full potential in order to meet their renewable targets.

“It has been observed that states have not come forward with the initiatives and bidding plans for renewable energy capacity addition, and have instead relied upon bids by central PSUs like Solar Energy Corporation of India (SECI),” Kumar said.

He further added that, “This will also help the state in adding generation capacity at financially competitive rates as compared to the marginal cost of power from fossil fuel-based thermal power capacity addition,” Kumar said. The capacity bid by states will be additional to the bids likely to be issued by central PSUs, Kumar said.

Source: Economic Times