Power Minister chairs meeting on action plan for enhancing the investment by power sector CPSEs in renewable Energy Projects

New Delhi : A meeting to discuss the Action Plan for enhancing the investment by power sector CPSEs in renewable Energy Projects, was held under the Chairmanship of R.K Singh, Union Minister of Power & NRE yesterday. Representative of all Hydro CPSEs, NTPC Ltd., MNRE and SECI were present in the meeting.Following decisions were arrived during the meeting:

  • Investment approval & Competitiveness:
    • In-principle approval to be accorded to CPSUs of MoP for bidding of RE power projects at the beginning of year for a pre-determined capacity based on strength of their balance sheet.
    • The matter of enhancement of power of investment approval of Board of mini Ratna CPSUs for upward revision to be taken up with Department of Public Enterprises.
    • Proposal for reducing hurdle rate IRR for RE Sector from 10% to 8%, to be taken up with Ministry of Finance.

 

  • Policy and Regulatory issues:
    • Bundling of RE projects with New or untied/high tariff hydro projects to be allowed so as to bring down the tariff of hydro power to consumers.
    • Proposal for waiver of Transmission charges for RE capacity under Flexibility Scheme to be considered.
    • No requirement for separate PPAs for RE Power developed under Flexibility Scheme
    • Separate guidelines to be formulated under Section 63 of The Electricity Act, 2003, for bundling scheme, for setting up RE plant on their own land or a new location.

 

  • Interventions – MNRE related issues
    • Allocation under CPSU Scheme:  It was deliberated to allocate the offered capacity amongst CPSUs through bidding process in some form on equitable basis.
    • MNRE to examine allowing Solar Power Park Developer/Individual Promoters to participate in TBCB process
    • Separate policy to be formulated for Floating Solar by MNRE

 

  • Issues with State Govt.
    • MNRE to evolve mechanism to ensure sanctity of bidding process and PPA by the State Government and for rationalizing high Solar Park charges.

 

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