NSEFI Urges Govt to cap RE Tariff at Rs 3/Unit under SECI/NTPC Auctions

NSEFI has urged the government to cap tariff from all renewable energy sources at Rs 3 per unit for auctions by state-owned SECI and NTPC.

The National Solar Energy Federation of India (NSEFI), an umbrella organization of all solar energy stakeholders of India, has urged the government to cap tariff from all renewable energy sources at Rs 3 per unit for auctions by state-owned Solar Energy Corporation of India (SECI) and NTPC Ltd. The capping will help to keep the renewables tariff lower than Rs 3 per unit. 

This will prove to be a remedy for differential treatment of electricity in the country and help in achieving ‘one nation, one grid, one renewable, one price’, according to National Solar Energy Federation of India (NSEFI). 

In a recent letter written to Power and New & Renewable Energy Minister R K Singh, NSEFI said, “We propose, ‘One Nation, One Grid, One Renewable, One Price’ concept. This would mean that all prices discovered through various tendering processes of all renewable energy sources conducted by SECI or NTPC in a financial year, shall be bundled together and One price shall be offered to states.”

The body further said, “This will solve their problem of differential treatment of electricity. This would also mean that all sources of renewable energies shall be equally dealt at the grid level and thus would help in better grid management. To induce Discoms to continue buying electricity from renewable energy sources, we may cap such electricity at Rs 3 per unit. However, the prices of electricity may vary for different tender and may be lower than the price mentioned.”

The organisation is of the view that these renewable energy sources complement each other and when combined with battery storage, provides a smooth power curve. However, since the cost of energy from battery storage is high at the moment, the country needs to explore the opportunities of incentivising energy sources that are complimenting each other, the body said. 

The body further elaborated that due to the difference in the rate of electricity from various sources of renewable energy, and even within the same sources, states tend to demand the cheapest source of electricity. As a result of which, SECI or NTPC find difficulties in executing power sale agreements with the state for different tendered prices, it added. 

The suggestion by the body assumes significance in view of India’s ambitious target of having 175 GW of renewables, including 100 GW of solar and 60 GW of wind energy.