As many as 24
power projects with 41.81 GW capacity may be under a severe financial stress,
but the troubled sector still holds hope in growth drivers including higher
demand from the Railways, proposed law to enforce power purchase agreements
(PPAs) on the discoms, increasing focus on electric vehicles and reaching
electricity to all un-electrified villages, an ASSOCHAM study has
remain a key concern for power sector in India. Out of the 24 stressed projects
having capacity of 41.81 GW, 8,300 MWs are without any power purchase
agreements (PPA), 9500 MW capacity are having partial PPAs (i.e. less than
40%). The balance capacity is having PPAs greater than 40%. Avenues
need to be found out to utilize the power available in the stranded capacities,
which are already commissioned or nearing completion,” the study stressed.
shows that all is not that bad, as is made out by stock analysts or the bankers
getting panicky, having financed the big projects. There are good prospects,
provided we are able to enforce PPAs and work on the plans already finalised,”
said ASSOCHAM Secretary General Mr D S Rawat.
proposes to amend the law making obligation under PPA, statutorily binding all
discoms to have PPAs to cover 100 per cent requirement. While there are
insufficient PPAs, even today around 5 crore household remain
un-electrified. Electrification of these household would lead to increase
storages in the country are mostly run with the help of off-grid power because
of reliability issues. Therefore, demand of the cold storages should be
met with grid power by providing necessary infrastructure.
Railways have taken great initiative for electrification. About 50% of
the Railways is presently electrified. It is expected that the railway
load is expected to exceed 3000 MW by 2021-22 from a current traction load of
2000 MW thus opening a potential of demand creation.
In view of large
capacity addition of Renewable Energy sources in the country, strict
enforcement of renewable purchase obligations (RPO) has become necessary.
In fact one amongst the various amendments proposed in the Electricity Act is
the strict enforcement of RPO.
It would require
investments in technology, grid balancing, green corridor, in peaking
power. By and large, electricity is 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 the battery of storage systems
to come down.
solar power and Electric Vehicle is the key to significantly reducing our
dependence on fossil fuels and are the natural evolution of our energy
In addition, storage is
going to be next frontier for India’s clean energy push and the batteries in
Electric Vehicles offer a potential solution, the paper added.