According to the letter the commission has noted that the power availability in Karnataka from all sources combined is more than the demand.
Due to this, the distribution companies (DISCOMs) will have to curtail the procurement from thermal power sources to accommodate renewable energy.
This curtailment will lead to extra cost as the fixed tariff must be paid to thermal projects regardless.
The letter added that the DISCOMs in Karnataka have been contracted to procure enough solar PV power to meet their renewable purchase obligation (RPO) for the next two financial years after FY 2019-20.
The commission also noted that at present, many DISCOMs are defaulting on payments towards power supply by renewable energy generators due to cash flow constraints.
Stating this, the KERC advised KREDL not to initiate any bidding process for solar PV.
This new development also shows the increasing gap between renewable energy potential rich states in India and the others.
This is a concerning development but not unexpected.
This is a Agency News Feed.