Renewable-Thermal Power Scheme Not likely to Appeal Bidders: Report

The Ministry of New and Renewable Energy's new proposal for developers to blend renewable and thermal power may not find many customers, as per Bridge to India (BTI). “We suspect that because of limited number of potential bidders, the scheme would not attract very competitive bids and may therefore not be cost attractive for discoms,” it said in its weekly report on the industry.

The advantage of the proposal is that while renewable energy is irregular, fluctuating according to the intensity of the sun or the speed of the wind, thermal power is not. Therefore, a blended supply guarantees a minimum transmission of power at all times

“With proposed mandatory blending of thermal power, the scheme remains beyond scope of most renewable power developers,” BTI said

This is the first time this combination is being allowed in the Indian power sector. The scheme states that at least 51% of power outcome is required to come from renewable sources – with or without storage.

Renewable energy developers feel the scheme would be detrimental to the environment if implemented. “It is detrimental to the health of the environment if this is made successful as we encourage more fossil fuels. We will not be able to achieve our Paris targets if this scheme is implemented in a big way,” said Sunil Jain, CEO, Hero Future Energies. Jain also felt that the responsibility of stabilising the grid should be borne by the operator, not the developer. “Nowhere in the world are developers asked to balance the grid,” he said.

“The scheme has been designed to specifically help the thermal lobby,” said another developer, requesting anonymity.