Lok Sabha Question No. 1473 (UNSTARRED), answered on 2022-02-10
Subject: Integration of Renewable Energy
Ministry: POWER
Asked by: Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1473 ANSWERED ON 10.02.2022

## INTEGRATION OF RENEWABLE ENERGY

1473.  SHRI SUSHIL KUMAR SINGH:

Will the Minister of POWER 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 by the industry to ensure that DISCOMs clear their dues to Power Generation Companies;

(c) whether the Governments has issued any advisory to the State Governments to ensure  that  they  do  not  renege  from  already  negotiated  Power  Purchase  Agreements (PPAs);

- (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?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) : The steps taken by the Central Government to facilitate Renewable Energy integration in the National interconnected grid include:

- i. Construction of Intra-State and Inter-State transmission systems for evacuation of Renewable power.
- ii. Setting  up  of  Regional  Energy  Management  Centers  (REMCs)  for  accurate forecasting of renewable power and assist grid operators to manage variability and intermittency of renewable power.
- iii. 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 launched to reduce intermittency.
- iv. Flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with Renewable Energy and Storage Power.
- v. Implementation  of  Green  Term  Ahead  Market  (GTAM)  and  Green  Day  Ahead Market (GDAM) for sale of renewable energy.
6. ..........2.

- vi. Waiver  of  Inter-State  Transmission  Charges  on  Transmission  of  the  Electricity generated from Solar and Wind Sources of Energy.
2. (b) : Following steps, inter alia, have been taken to ensure that DISCOMs clear their dues to Power Generation Companies:
- i. 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 (NLDC)  and  Regional  Load  Despatch  Centre  (RLDC)  shall  dispatch  power  only after  it  is  intimated  by  Generating  Company  and/or  Distribution  companies  that LC for the desired quantum of power has been opened and copies made available to the concerned Generating Company.
- ii. In  order  to  tide  over  the  liquidity  problems  of  the  power  sector  exacerbated by the outbreak of COVID-19, the Government of India announced a Liquidity Infusion Scheme as a part of Aatmanirbhar Bharat Abhiyan on 13th May, 2020. Under this intervention,  Rural  Electrification  Corporation  (REC)  Ltd.  and  Power  Finance Corporation (PFC) Ltd. are extending special long term transition loans up to 10 years to DISCOMs for liquidating their outstanding dues of Central Public Sector Enterprise (CPSE) Generating Companies and Transmission Companies, Independent Power Producers and Renewable Energy Generators. So far, loans to the extent of Rs. 1,35,497 Crore have been sanctioned and Rs. 1.03 Lakh Crore have  been  disbursed  as  on  31.12.2021.  The  disbursement  under  the  long  term transition  loans  has  been  linked  with  DISCOMs  undertaking  specified  reform measures.
5. (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).

**********