Lok Sabha Question No. 556 (UNSTARRED), answered on 2021-07-22
Subject: Integration of Renewable Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO-556

ANSWERED ON-22/07/2021

## INTEGRATION OF RENEWABLE ENERGY

## 556. SHRI SUSHIL KUMAR SINGH

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) the steps being taken by the Government to ensure variable renewable energy integration in the national interconnected grid;
- (b) the steps being taken to ensure that the DISCOM clear their dues to power generation companies;
- (c) whether the Government has issued any advisory to States to ensure that they do not renege from already negotiated power purchase agreements;
- (d) if so, the details thereof; and
- (e) if not, the steps being taken by the Government to ensure that power generation business, especially when it comes to renewable energy is economically viable?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a) The steps taken to facilitate Renewable Energy (RE) integration into the grid include:

- i. Innovative products like solar-wind hybrid projects, RE projects with energy storage systems and supply of RE power balanced with power from non RE sources, to reduce intermittency.
- ii. Construction of Intra-State and Inter-State transmission systems for evacuation of RE.
- iii. Setting up of Regional Energy Management Centers (REMCs).

(b) As per the Liquidity Infusion Scheme announced by the Government of India as part of Atmanirbhar Bharat  Abhiyan  on  13th  May,  2020,  Rural  Electrification  Corporation  (REC)  and  Power  Finance Corporation  (PFC)  are  extending  special  long  term  transition  loans  up  to  10  years  to  Discoms  for liquidating  outstanding  dues  of  Central  Public  Sector  Enterprise  (CPSE)  Generation  companies  and Transmission companies, Independent Power Producers and Renewable Energy (RE) generators.

Further, Ministry of Power vide its Order No. 23/22/2019-R&R dated 28.06.2019 has made it mandatory for Distribution Licensees/ Procurers of Power to open and maintain adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements. As per the said Order, National Load Despatch Centre (RLDC) and Regional Load Despatch Center (RLDC) shall despatch power only after it is  intimated  by  the  Generating  Company  and  /Distribution  Companies  that  a  Letter  of  Credit  for  the desired  quantum  of  power  has  been  opened  and  copies  made  available  to  the  concerned  Generating Company.

(c) to (e) Yes Sir. Government have stated that contracts must be honoured.

The  standard  bidding  guidelines  for  solar,  wind  and  hybrid  projects  have  specific  provision  for termination  compensation  in  case  of  unilateral  termination  of  Power  Purchase  Agreement  (PPA).  The guidelines also provide for a three-tier payment security mechanism by way of letter of credit, payment security  fund  and  Tri-Partite  Agreement  (between  the  State  Government,  Reserve  Bank  of  India  and Govt. of India).

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