A New Scheme To Motivate DISCOM’S For Buying Solar Power

In Clean News, News, Renewable Energy
solar power

To address the issue of solar power not finding buyers, the government will bundle projects in order to cushion the hit to state-run power distribution companies (discoms) from high tariffs discovered under certain auctions.

To start with, projects with a combined capacity of 3 gigawatt (GW) bid out under the manufacturing-linked solar scheme in January, will be bundled with a total 3.2 GW capacity awarded in the last two SECI auctions held in February and June.

This means that the discoms concerned could buy power at a composite rate of 2.66 per unit, against a higher tariff of 2.92 discovered in manufacturing-linked scheme.


The 3 GW capacity to be combined with other projects is part of the 12 GW projects awarded in the maiden auction under the manufacturing-linked scheme.

Around 6 GW of standalone renewable power projects, won by various players after quoting the lowest rates in reverse auctions conducted by SECI are staring at an uncertain future as the agency has not yet found buyers for electricity from these solar/wind power generation units.

In order to save the manufacturing-linked scheme from a similar fate the MNRE has come up with this novel scheme where standalone solar projects under two other rounds of auction are being bundled with the manufacturing-linked solar projects, because the rates (under manufacturing-linked scheme) are high so the states have been reluctant to buy power from them so far.

Reference- Financial Express, Economic Times, Mercom India

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