The Union government recently announced a scheme to bundle renewable energy with thermal (coal/gas)-based power and sell them together. The idea is to ensure optimum utilisation and sale of renewable power and thereby reduce the cost of power at the consumers’ end. This would also help states meet their mandatory renewable purchase obligations (RPO).
The thermal power industry is elated at this decision, but the renewable energy sector is divided on the scheme. Some have called it a plan to salvage under-utilised stressed thermal power units and others think it detrimental for renewable power units.
The draft scheme proposed by