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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has released a comprehensive framework to create an ecosystem for developing energy storage systems (ESS) to guarantee affordable, clean, stable, flexible, and secure power. The recommendations range from financial incentives to changes in bidding guidelines for storage projects. The Ministry has proposed policy and regulatory measures that are either under review or may be contemplated in the future.
Viability Gap Funding 
To enhance the cost-effectiveness of energy storage and make the battery energy storage system (BESS) a feasible choice, a recommendation has been made to extend the viability gap funding (VGF) support to the first few BESS projects. This VGF assistance could potentially cover up to 40% of the project&#8217;s capital expenses, subject to the condition that the projects are completed and commissioned within a timeframe of 18 to 24 months.
Through the suggested VGF, it becomes feasible to maintain the Levelized Cost of Storage (LCoS) at affordable levels. Considering the energy charging expenses for the BESS, the overall energy cost from BESS would be in line with market rates on power exchanges during peak demand periods. Consequently, with the proposed VGF, BESS becomes a practical choice for managing peak power needs.
Support for Pumped Storage Projects
Pumped Storage Projects are frequently initiated in remote regions that lack adequate infrastructure. The infrastructure created for these projects not only serves their immediate purpose but also facilitates the broader development of the area, offering opportunities for repurposing. This encompassing infrastructure scope may include the provision of transmission infrastructure extending up to the pooling point.
Green Finance
Government-concessional green financing can be harnessed to kickstart and expedite the development of the ESS industry. Sovereign Green Bonds, incorporated into the government&#8217;s broader financial initiatives, can serve as a source of funding for eco-friendly infrastructure and reducing carbon emissions in the economy. Additionally, financial institutions such as Power Finance Corporation, REC, and the Indian Renewable Energy Development Agency may offer extended, long-term loans to support ESS projects.
Resource Adequacy Plan
According to the Ministry, the guidelines for formulating a Resource Adequacy Plan can incorporate ESS within the planning framework.
The Central Electricity Authority (CEA) will issue a Long-term National Resource Adequacy Plan that estimates the national-level storage requirements for the upcoming decade. Furthermore, distribution companies (DISCOMs) must develop a Long-term Resource Adequacy Plan covering a ten-year horizon.
The Long-Term Resource Adequacy Plan will outline the projected need for ESS, spanning from the distribution level to the national level. This will enable developers, particularly pumped storage project developers, to plan and prepare for additional capacity well in advance.
The statutory obligation associated with the Resource Adequacy Plan will provide clarity regarding future ESS demand. Moreover, the statutory provision mandating 24/7 power supply will necessitate that DISCOMS integrate ESS as an essential component of their respective Resource Adequacy Plans.
Bidding Guidelines for ESS
The government may issue technology-agnostic bidding guidelines for long-term energy storage, short-term energy storage, and ancillary services. These guidelines aim to facilitate the rapid development of financially viable and ecologically sustainable ESS projects in the power sector, benefiting utilities, procurers, and developers.
The bidding process can be structured in two ways: either as a composite tariff, which includes the cost of input power if the developer arranges for the input power, or as a tariff per MWh for storage if the procurer of the storage capacity is responsible for arranging the input power.
Earlier this year, the Ministry of Power <a href="https://www.mercomindia.com/bidding-guidelines-renewable-projects-energy-storage" target="_blank" rel="noopener">issued</a> guidelines for the tariff-based competitive bidding process for procuring firm and dispatchable power from grid-connected renewable energy projects with ESS.
ESS with Renewable Generation
To guarantee a dependable power supply through sufficient storage capacity, new renewable energy ventures (excluding hydro projects) with an installed capacity exceeding 5 MW or as determined by the government may be required to incorporate Energy Storage Systems (ESS) with a minimum storage duration of 1 hour, representing at least 5% of the renewable energy project&#8217;s capacity.
The inclusion of such ESS capacity can be factored into the bidding process and may either be co-located with the renewable energy project or integrated with storage situated elsewhere.
Regulatory Measures
To achieve financial and commercial viability, ESS developers and intermediary agencies would be permitted to offer a range of market-based energy and power products. These products may include:
<ul>
<li>Spot energy market</li>
<li>Capacity market/Energy arbitrage (boosting capacity value by shifting off-peak generation to peak times)</li>
<li>Provision of ancillary services to the grid</li>
<li>Providing storage to other generating stations</li>
<li>Bundling to make renewable energy firm and dispatchable</li>
<li>Replacing diesel generators in various sites</li>
<li>Any other product that meets market demand or requirements</li>
</ul>
The appropriate commission may consider ESS an alternative when approving the Capital Expenditure (CAPEX) requirements for any new transmission or distribution system.
The Ministry has emphasized the need for the relevant commission to define Time of Day (ToD) tariffs applicable to commercial and industrial (C&amp;I) and other consumer categories per the established regulations. This initiative aims to incentivize consumers and utilities to leverage ESS to optimize their power costs.
Additionally, ESS systems utilizing renewable energy sources for charging may be eligible for carbon credits, with the specific accounting methodology to be provided separately.
Also, ESS integrated into rooftop solar projects or deployed in a distributed manner can be aggregated on a grid-scale level, benefiting both DISCOMs and system owners. To facilitate this, the relevant commission may establish a supportive framework for peer-to-peer energy trading.
The relevant commission may introduce distinct tariff regulations for pumped storage projects to ensure tariff viability. This may encompass rationalizing factors like the return on equity, debt-to-equity ratio, and similar considerations.
Tax and Duty waivers
In accordance with the principles of double taxation avoidance, the framework recommends that the electricity duty and cross-subsidy surcharge should not be imposed on the input power utilized for charging ESS. ESS primarily serves to efficiently store energy during off-peak periods and release it during peak demand periods. Therefore, the electricity duty and the cross-subsidy surcharge should apply solely to the ultimate electricity consumption.
Also, states can waive the payment of stamp duty and registration fees for the acquisition of land designated for the installation of ESS.
Manufacturing of BESS
To promote indigenous manufacturing, the government may formulate a production-linked incentive (PLI) program specific to BESS to be used in the power sector.
In June this year, Union Power Minister R.K. Singh <a href="https://www.mercomindia.com/new-pli-program-energy-storage" target="_blank" rel="noopener">proposed</a> implementing a PLI initiative for grid-scale storage to bolster capacity and encourage ongoing investments.
Quality and Standards
To uphold quality and standards for BESS in power sector applications, the government may contemplate the creation of an Approved List of Models and Manufacturers (ALMM) for BESS, akin to the ALMM list for solar modules issued by the Ministry of New and Renewable Energy (MNRE).
Research and Development
The government may set up a nodal agency to oversee the sector&#8217;s research and development endeavors, with funding channeled through this entity. Furthermore, the nodal agency may establish and maintain a nationwide online platform to streamline knowledge exchange and prevent redundant R&amp;D initiatives.
Recycling and Sustainability
Specialized waste management facilities could be established to streamline electronic waste collection in adherence to government regulations. A structured mechanism, complete with predefined criteria and essential standards, will be instituted to enable the repurposing of ESS components from one application for reuse in another. Formulating a standardized operating procedure can promote recycling endeavors and the recovery of materials from end-of-life batteries.
Moreover, discarded mines, including those previously exploited and excluding coal mines designated for ash back-filling, can be repurposed as hydro storage facilities, naturally facilitating the establishment of pumped storage projects.
New mines earmarked for mining operations should include an approved mine closure plan encompassing pumped storage projects&#8217; development. Collaboration between the central public sector undertakings (CPSUs) and coal sector CPSUs can aid in identifying potential and feasible sites and expedite the deployment of pumped storage projects in such coal mines across the country.
In June this year, the government <a href="https://www.mercomindia.com/fast-track-commissioning-pumped-storage-projects" target="_blank" rel="noopener">introduced</a> several initiatives to expedite pumped storage project commissioning.
Last year, the Ministry of Power had <a href="https://www.mercomindia.com/power-ministry-notifies-wind-hydro-and-energy-storage-purchase-obligation" target="_blank" rel="noopener">issued</a> the Renewable Purchase Obligation (RPO) and Energy Storage Obligation (ESO) until the financial year 2029-2030. The ESO will be calculated in energy terms as a percentage of the total electricity consumption and treated as fulfilled only when at least 85% of the total energy stored in the ESS is procured from renewable energy sources annually.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Ministry Proposes Viability Gap Funding for Energy Storage Projects

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					</table>Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) has invited research and development (R&amp;D) proposals to set up pilot energy storage systems (ESS) and other renewable energy projects and products.
The tender encourages indigenous innovations in the ESS space, rooftop solar, data analytics, and new renewable energy concepts. It intends to facilitate developing and commissioning these technologies to lay the groundwork for future large-scale implementation.
The scope of work includes design, engineering, installation, commissioning, and testing of the project until the interconnection point at the 11/33 kV substation. The project should be set up at the site identified by SECI, and connectivity will be the responsibility of SECI. The project proposal should include the tentative project layout and single-line diagrams for connectivity to the grid.
SECI has invited bids to demonstrate scalability in gravity-based or mechanical ESS, green hydrogen-based ESS, any other non-electrochemical ESS technology, rooftop systems with or without storage, data analytics of renewable energy projects, and any new renewable energy technologies development and demonstration.
The project capacities should be up to 500 kWh of energy storage capacity, along with a suitable solar power generation system.
The last date to submit the proposals is October 14, 2022.
The innovative rooftop products developed under this proposal will be deployed either at SECI establishments or at any site chosen by SECI.
Academic institutions, including engineering colleges, public and private Industries, societies, trusts, non-government organizations, startups, and organizations engaged in R&amp;D to promote new and renewable energy, can participate in the bidding process.
The project must be completed within 1-2 years from the date of sanction of the project. SECI will support the project&#8217;s funding up to 100% of the project cost within the financial outlay submitted in the proposal.
SECI will be the monitoring entity for the projects. A project monitoring committee will comprise subject matter experts from the industry, academia, and representatives from SECI.
In June this year, SECI <a href="https://mercomindia.com/daily-news-wrap-up-seci-annuls-tender-green-hydrogen-leh/" target="_blank" rel="noopener">announced</a> the annulment of the request for proposal to set up a 25 kW green hydrogen-based pilot project at SNM hospital in Leh, Union Territory of Ladakh. The bid was issued in March this year.
Earlier, JSW Renew Energy Five Limited, a special purpose vehicle of JSW Energy, had <a href="https://mercomindia.com/jsw-renew-energy-wins-seci-tender-1gwh-bess/" target="_blank" rel="noopener">won</a> SECI&#8217;s auction to set up pilot projects of 500 MW/1000 MWh standalone battery energy storage systems under a build, own, operate, and transfer model.
Subscribe to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.

SECI Invites R&D Proposals to Set Up Pilot Energy Storage Systems

A recent report by the Massachusetts Institute of Technology&#8217;s Energy Initiative (<a href="https://energy.mit.edu/" target="_blank" rel="noopener">MITEI</a>) has studied the role of energy storage technologies with variable renewable energy resources to establish deep decarbonized electricity systems by 2050 efficiently.
The report titled &#8216;Future of Energy Storage&#8217; suggests diverting government investments in analytical tools to plan, operate, and regulate electricity systems. It focuses on emerging markets and developing economies (EMDE) like India, where electricity demand is rapidly growing. The report points out that EMDEs must figure bandwidth for storage technologies to complement the power systems, including electricity generation, transmission, and demand response.
The report points out the many existing power plants in the U.S. which were shut down could be converted into essential energy storage facilities by replacing their fossil fuel boilers with thermal storage and new steam generators.
Energy storage systems
According to the findings in the report, the stored energy can make deep decarbonization of reliable electric power systems affordable. Battery storage would also help India and other EMDE nations that rely on coal for power generation and lack access to low-cost gas to decarbonize grids.
The focus of the study is centered on four types of significant energy storage technologies — electrochemical, thermal, chemical, and mechanical. The study found that electrochemical storage systems, including diverse battery variants, have enhanced energy density than mechanical and thermal storage systems but have a lower density than chemical systems.
For instance, lithium-ion batteries have high energy and power density with a higher roundtrip efficiency. Such energy-friendly properties of Li-ion batteries have made them the best suitable solution for electric vehicles and are also used in short-duration (4-hours) electricity system storage.
The study recommended the reuse of steam turbines at existing power plants and adding thermal storage and new steam generators to substitute for boilers that operate on fossil fuels. The focus is on a near-term thermal energy storage mechanism to reduce the cost of converting heat to electricity.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-35372" src="https://mercomindia.com/wp-content/uploads/2022/05/MIT-Grid-Electricity.png" alt="MIT Grid Electricity" width="528" height="366" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/MIT-Grid-Electricity.png 528w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/MIT-Grid-Electricity-300x208.png 300w" sizes="(max-width: 528px) 100vw, 528px" />
<h6 style="text-align: center;">Source: MIT</h6>
Currently, many developing economies produce, transport, and trade hydrogen as a feedstock for industrial processes. Water-electrolysis is one way to produce low-carbon hydrogen using low-carbon grid electricity, which can support the power sector&#8217;s decarbonization. The study classifies hydrogen as the prominent chemical energy storage.
Power consumption in India from ACs and EVs
The study focuses on supply-constrained conditions prevalent in some parts of India, where off-grid electrification systems have attracted interest from private developers and development financing institutions like the World Bank.
According to the International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>), electricity load, driven by the adoption of energy-intensive appliances like air conditioners accompanied by electrification of transport services, is very likely to grow faster than the total energy demand in India. The IEA predicts that growth-driven energy consumption could result in India&#8217;s final energy use being 81% greater in 2040 than in 2019.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-35373" src="https://mercomindia.com/wp-content/uploads/2022/05/India-Regional-Electricity-Generation-Capacity.png" alt="India Regional Electricity Generation Capacity" width="546" height="378" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/India-Regional-Electricity-Generation-Capacity.png 546w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/India-Regional-Electricity-Generation-Capacity-300x208.png 300w" sizes="(max-width: 546px) 100vw, 546px" />
<h6 style="text-align: center;">Source: MIT</h6>
The study categorizes India as a demand-driven country where understanding demand growth and patterns in future electricity use is crucial to storage use cases. For instance, the VRE capital costs in India are 50-70% lower than in the United States due to many regional factors, including cheap labor.
The study analyzed the storage use cases in India using demand-side modeling. The analysis distinguished between established electricity end uses in India, and emerging end uses such as AC units and electric vehicles (EV). The demand-side model used AC sales projections in India by unit type based on size.
The study considered a baseline scenario with electricity sales projections based on currently available AC units and a high-efficiency scenario that assumes preferential adoption of efficient AC units. As per IEA, the sales-weighted average SEER for AC units in India was 3, while the global average stood at 4.
While central AC systems using efficiency measures such as variable refrigeration are common in America, the Indian markets are occupied mainly by cheaper but less efficient split units. The model used NITI Aayog&#8217;s estimates from 2018 for future EV sales and the government targets to address the EV charging demand in India.
The study projects the electricity demand from EV charging to be relatively modest compared to the AC in India, both in annual and peak consumption. The findings contrast with projections for developed economies like the United States and Europe, where the growth in electricity demand is primarily expected from EV charging, with consequences for long-term grid evolution.
Energy storage combined with variable renewable energy resources is one of the most promising solutions for the Indian power sector. Recently, Union Power Minister R K Singh <a href="https://mercomindia.com/daily-news-wrap-up-indias-power-demand/" target="_blank" rel="noopener">informed</a> Parliament that India would likely require around 1,650 billion units of power, and the peak power demand will reach about 389 MW in 2022-23.
Another report by the World Bank published in 2018 <a href="https://mercomindia.com/electricity-demand-india-triple-2018-2040/" target="_blank" rel="noopener">projected</a> that India&#8217;s total installed power generation capacity had increased from 154.7 GW in 2007 to 345.5 GW in 2018, making it the third-largest electricity producer globally.

Emerging Economies Like India Must Focus on Storage Technologies: Report

United States-based <a href="https://xnrgi.com/" target="_blank" rel="noopener noreferrer">XNRGI</a> has announced that the company has opened a high temperature (HT) lithium-ion battery factory in Gurugram in India that can produce 240 MWh of battery production capacity.
The factory will be spread across 45,000 square feet of land. According to the company statement, “The factory has begun production of its HT Mobility Smart Telemetry Battery XM 5kWh for rickshaws, e-bikes, e-motorcycles, golf carts, solar and wind farms, and telecom tower UPS.”
XNRGI also has aggressive plans to scale capacity worldwide in the multi GWh range by 2022 with strategic relationships in different parts of the world.
The factory will produce XNRGI HT turnkey energy storage solutions (ESS). This will include battery packs, battery/energy management systems, optional tracking, and remote status monitoring hardware. These energy storage solutions are specially optimized for hot, humid tropical climates such as Southeast Asia, MENA (Middle East, North Africa), and the southern and central parts of North America.
According to the company statement, the unique advantages of the XNRGI HT batteries include that they charge to 80% capacity within two hours and can operate in more than 55-degree centigrade.
For rickshaws and similar applications, the batteries can be remotely monitored and tracked for safety reasons and to check their charge status.
The company has its fundamental cell research and development, manufactures its batteries through its preferred suppliers, builds battery and energy management systems, assembles energy storage systems in its automated factory.
Earlier, the <a href="https://dhi.nic.in/" target="_blank" rel="noopener noreferrer">Department of Heavy Industry</a> invited <a href="https://mercomindia.com/government-proposals-ev-charging/" target="_blank" rel="noopener noreferrer">proposals</a> for deploying electric vehicle charging infrastructure in the country’s big and smart cities under the government’s FAME program. The cities have been categorized as million-plus cities, smart cities, satellite towns connected to metro cities of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, and Ahmedabad.
In December 2019, Mercom reported that Ather Energy <a href="https://mercomindia.com/ather-energy-ev-li-ion-battery-tamil-nadu/" target="_blank" rel="noopener noreferrer">announced</a> that it had signed a memorandum of understanding with the government of Tamil Nadu to set up a two-wheeled electric vehicle and lithium-ion battery manufacturing facility. The 400,000 square feet factory will be located at Hosur.
Meanwhile, in January 2020, it was reported that new research <a href="https://mercomindia.com/ibm-claims-come-up-battery-replace-lithium-ion/" target="_blank" rel="noopener noreferrer">finding</a> at IBM Research has come up with a new battery that does not use any heavy metals with sourcing concerns. IBM claims that the materials used for this battery can be extracted from seawater, and there is no need to use other invasive methods for extracting the materials, which makes it a viable alternative as compared to the standard batteries in use.
Image credit: NASA Glenn Research Center / Electrochemistry Branch / Public domain
&nbsp;

US-Based XNRGI Opens Lithium-Ion Battery Factory in Gurugram

The <a href="https://www.knesset.gov.il/govt/eng/GovtByNumber_eng.asp" target="_blank" rel="noopener noreferrer">Government of Israel</a> has issued a tender inviting interested bidders to participate in the pre-qualification process to develop approximately 300 MW of solar projects.
The projects are to be developed near Dimona in the Negev under a public-private partnership. The last date for the submission of bids is May 26, 2020, while the final date for the submission of requests for clarification has been scheduled for April 19, 2020.
The pre-qualification process is to select entities who will be eligible to participate in the tender process.
As per the financial requirements, the interested bidder should have an annual turnover of at least New Israeli Sheqel (NIS) 300,000,000 (~$87 million) in the last three years. A bidder who is not a financial entity is required to show the equity of not less than NIS 2,000,000 (~$~$0.6 million).
The scope of work includes the finance, design, construction, operation, maintenance, and transfer of the solar project. The tender committee could include within the scope of work the finance, design, construction, operation, and maintenance of an energy storage system. Therefor eligible participants would be required to demonstrate their experience or know-how of energy storage systems. Such an experience could be scored or evaluated as part of the tender process.
Further, the successful bidder will be required to engage an engineering, procurement, and construction (EPC) contractor for the project design and construction. Similarly, the successful bidder will also have to engage an operation and maintenance (O&amp;M) contractor. The participant can either be a single entity or several entities who have come together to submit a pre-qualification submission.
Last year, Israel’s leading research university, <a href="https://in.bgu.ac.il/en/Pages/default.aspx" target="_blank" rel="noopener noreferrer">Ben-Gurion University</a>, designed a miniaturized solar-power prototype that will help private commercial space missions. The National Aeronautics and Space Administration (<a href="https://www.nasa.gov/" target="_blank" rel="noopener noreferrer">NASA</a>) is set to send a prototype to the International Space Station with its first launch of 2020.
In November 2018, Mercom reported that Israel had proposed to help in <a href="https://mercomindia.com/israel-60-million-50-mw-solar-angola/" target="_blank" rel="noopener noreferrer">developing</a> a 50 MW solar photovoltaic project and contribute towards the improvement of the agricultural sector in Angola in Central Africa.  It was also reported back then that Israel had invested $300 million in the agricultural sector in Angola since 2014.
&nbsp;
Image credit: JCM The Joint Crediting Mechanism &#8211; GEC

Israel Invites Pre-Qualification Bids for 300 MW of Solar Projects

<a href="https://www.solaredge.com/home" target="_blank" rel="noopener">SolarEdge Technologies, Inc.</a> (SolarEdge), an energy technology company that develops PV inverters, has announced that it has entered into definitive agreements to acquire a major stake in <a href="http://kokam.com/" target="_blank" rel="noopener">Kokam Co., Ltd</a>. Headquartered in South Korea, Kokam is a provider of lithium-ion battery cells, batteries and energy storage solutions.
Kokam was founded in 1989, the company is a manufacturer of lithium-ion cells. Kokam provides battery solutions for a wide-variety of industries, including ESS (energy storage systems), UPS, electric vehicles (EV), aerospace, marine, and more.
“The acquisition of Kokam will enable us to grow our offering, adding already proven battery storage to our product portfolio,” said Guy Sella, CEO, Chairman and Founder of SolarEdge in a media statement.
“Our technological innovation combined with Kokam’s world-class team and renowned battery storage solutions, will enable seamless integration with our current solutions, taking us a further step toward making solar installations smarter and more beneficial.” Sella added.
SolarEdge has acquired around 75 percent of Kokam’s outstanding equity shares, this translates into an aggregate investment of approximately $88 million, including related transaction expenses. The transaction is subject to customary closing conditions and is expected to close in the coming weeks. Over time, SolarEdge intends to purchase the remaining outstanding equity shares of Kokam that are currently listed on the Korean over the counter exchange through open-market purchases and otherwise, eventually resulting in Kokam becoming a wholly-owned subsidiary of SolarEdge.
In April 2017, Mercom <a href="https://mercomindia.com/solaredge-expands-india-new-offices-bangalore/" target="_blank" rel="noopener">reported</a> on SolarEdge’s expansion plans in the Indian market by establishing its offices in Bangalore.
In August 2018, Mercom also <a href="https://mercomindia.com/india-national-energy-storage-mission/" target="_blank" rel="noopener">reported</a> on the Indian governments plans to launch a national energy storage mission which strives to develop leadership in energy storage sector by creating an enabling policy and regulatory framework that encourages manufacturing, deployment, innovation and further cost reduction.
Image credit: Flickr

SolarEdge to Acquire Korean Battery Technology Company Kokam

The Indian government is expected to soon amend laws making obligations under power purchase agreements (PPA) statutory binding, to ensure that all power distribution companies (DISCOMs) have PPAs to cover 100 percent RPO requirement.
This announcement was made by R.K Singh, the Minister for Power during an event held by the Associated Chambers of Commerce &amp; Industry of India (<a href="http://www.assocham.org/" target="_blank" rel="noopener">ASSOCHAM India</a>) in New Delhi. “I have called a meeting of energy ministers of all states on November 10-11 &#8211;  I will tell them that I am going to make obligations under PPAs statutory binding, that all DISCOMs must have PPAs to cover 100 percent of requirement, and there will be penalties for not paying electricity bills on time,” said R.K. Singh, according to an ASSOCHAM release.
The Minister also said that he will tell all state energy ministers that there must be a limit to cross-subsidization in tariffs to make the industry competitive enough. “If you want to give subsidies to any sector, you do it through Direct Benefit Transfer (DBT) so that efficiencies and inefficiencies of DISCOMs are clear,” added Singh.
Highlighting that he has a very clear roadmap for reforms in the power sector, Singh said that the government will make it certain that payment of electricity bills is made on time by implementing smart metering and pre-paid metering.
“I am also going to initiate penalties if power bills are not paid promptly and renewable purchase obligations (RPOs) will be obligatory &#8211; it will be a statutorily legal compulsion because we are not going to go back on our commitments made to the world and international community that 30 percent of our power will be from green sources of energy,” added Singh.
The Ministry of Power will separate carriage and content, which will happen in the next amendment and that would bring-in more competition in distribution which shall bring in more efficiency. “We have proposed to bring that in the amendments which we are contemplating in the Electricity Act, where we will deal with the issue of PPAs and RPOs,” elaborated Singh.
On the hydro policy Singh said, “A draft has been presented to me, and once it is refined, we will send it to the cabinet.” He will try to get it passed in the winter session of Parliament. He also said that power demand in India is going to grow because coverage is going to expand and it is going to be universal. “We are connecting all villages by this December, though the target is for March.”
Singh further said that green energy is going to gradually edge out fossil fuels as the primary energy source. He however said that it would require investments in technology, grid balancing, green corridors, and peaking power. “By and large we see electricity emerging as the primary source of energy as electric mobility is more efficient than mobility by petrol or diesel. The only thing required is the prices of battery of storage systems to come down,” said Singh.
He said it will also require investments manufacturing for in storage systems and electric vehicles. “I had called a meeting of all vehicle and storage manufacturers and have asked them to start investing, because that is the future.”
In a <a href="https://mercomindia.com/solid-accomplishments-piyush-goyal-makes-way-raj-kumar-singh-indias-new-minister-power/" target="_blank" rel="noopener">cabinet shuffle</a> in September 2017, Mr. Raj Kumar Singh took over as the Minister of Power. In <a href="https://mercomindia.com/meeting-solar-industry-minister-power/" target="_blank" rel="noopener">October</a>, he called a meeting of solar project developers and manufacturers to understand the issues plaguing the sector in India.
Mercom <a href="https://mercomindia.com/mercom-exclusive-renewable-purchase-obligation-compliance-needs-improve-fast-india-meet-solar-installation-targets/" target="_blank" rel="noopener">previously reported</a>, due to the lack of enforcement of RPO regulations and the absence of penalties when obligations are not met, many of the state DISCOMs (distribution companies) are not complying fully with their RPO targets.
Image credit: Office of R.K. Singh

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