This is the second part, in a series of four articles, of briefly analysing the renewable energy initiatives announced or implemented by the Indian government over the last three years. In this part we shall look at the initiatives undertaken to ease the transmission and end-consumption of renewable energy.
The first part (macro-level directional policy initiatives) is available here.
Green Energy Corridors
The Indian government announced that a dedicated transmission network for renewable energy projects will be developed in order to a) avoid stress on the existing transmission grid and b) ease inter-state transmission to enable achievement of renewable purchase obligation. Work on a number of transmission projects under this program has already started. This program shall be highly beneficial for the several solar and wind energy parks planned by the central and state governments.
Abolishment of inter-state transmission charges
In order enable states with low solar resources the Ministry of New & Renewable Energy waived off the inter-state transmission charges for wind and solar power projects. This incentive shall be applicable to all solar power projects commissioned by 30 June 2017 and all wind energy projects commissioned by 31 March 2019. This initiative will allow several states to sign power purchase agreements with large-scale renewable energy projects. The direct result was Delhi Metro Rail Corporation signing a PPA with Rewa solar power park located 800 kilometres away. Several states signed PPAs worth 1,050 megawatts with wind energy projects located in different parts of the country.
Renewable Energy Forecast Regulations
In order to better integrate the large amount of renewable energy expected to enter the Indian power mix the Indian regulatory bodies have issued regulations for project operators to forecast, with a certain accuracy, and schedule the renewable energy they plan to inject into the grid. This brings renewable energy projects much closer to being at par with all other power projects in India which face similar scheduling regulations and penalties.