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Power Discoms to pay full tariff to renewable energy producers

Thursday, 01 Aug 2019
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Power distribution companies will have to pay the agreed full tariff to renewable energy producers during the period of non-supply of electricity.

Power Discoms pay fixed charges or infrastructure cost to electricity generation companies during the non-supply period under the power purchase agreements (PPAs). They do not pay the cost of fuel for the period.

The New and Renewable Energy Ministry noted that there is no fuel cost for renewables, the fixed cost in case of renewable will be agreed tariff during the non-supply period, which includes installation, operation and maintenance (O&M) cost.

Power distribution utilities will pay the agreed full tariff during the period of non-supply of electricity to generating companies running solar, wind and small hydro power projects up to 25 MW. Under this, the discoms will have to open sufficient letters of credit for getting power supply from generating firms.

 
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