What are the top two priority agenda items you are currently working on?
The first priority is to ensure that transmission infrastructure is planned and upgraded in a manner that supports our RE ambitions. If RE is to expand, transmission capacity must grow at the same pace.
The second priority is to increase the penetration of distributed RE across more states. Currently, a majority of solar and wind deployment is concentrated in just five states, which places extra stress on transmission lines. We need to leverage capacities in other states that remain underutilised.
For this, we require different instruments. The implementation of the PM-Surya Ghar: Muft Bijli Yojana and the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-Kusum) for farm solarisation are key mechanisms. We are also exploring options such as floating solar and agri-photovoltaics in agriculturally rich states that lack surplus land, unlike Rajasthan, Arunachal Pradesh, and Gujarat.
To sum up, priorities include RE integration with the grid, decentralised RE, and strengthening distribution companies’ (discoms’) ability to manage decentralised energy through Distributed Energy Resource Management Systems. We are also focusing on emerging areas such as green hydrogen and its derivatives, including green ammonia and green methanol.
What is the solution to transmission capacity constraints leading to curtailments?
The ultimate solution is to expand transmission capacity. RE deployment has accelerated rapidly and can now be completed within one to one and a half years due to its modular nature. In contrast, long-distance transmission lines take three and half to five years to build.
Moreover, most RE deployment — both solar and wind — is concentrated in five states: Rajasthan, Gujarat, Maharashtra, Tamil Nadu, and Karnataka. This concentration increases the transmission footprint in these regions, leading to challenges related to land acquisition and right of way. Both state governments and central agencies are working to address these issues.
In the long term, existing transmission lines must be upgraded to evacuate more power. Major technological work is underway, including the use of artificial intelligence to assess available capacity margins.
The introduction of the General Network Access (GNA) splitting mechanism under the Third Amendment to the Connectivity and GNA Regulations allows transmission access to be divided between solar and non-solar hours. This enables better utilisation of transmission infrastructure, including during night-time.
A combination of advanced transmission technologies and GNA splitting will help address current constraints.
What is the current status of bidding for offshore wind projects?
A bid was conducted for Gujarat, but it did not attract developers. However, LiDAR (Light Detection and Ranging) surveys have been completed for the Tamil Nadu project, and a tender could be issued.
The global wind energy scenario remains challenging. Many countries have seen non-responsive bids, with developers holding back. Rising steel prices have pushed up offshore wind costs considerably. We do not want a situation where power tariffs exceed what discoms are willing to pay.
Wouldn’t viability gap funding (VGF) address this issue?
Earlier, if tariffs were in the range of ₹7.5–8 per unit, VGF could have brought them down to around ₹4 per unit — an acceptable level for discoms. However, costs have now risen, with offshore wind tariffs estimated at ₹9–11 per unit.
Costs for undersea cables have also increased and could rise further under tariff-based competitive bidding.
We are exploring ways to attract developers and manufacturers. Much of the required equipment — turbines, blades, and masts — is not manufactured in India and must be imported. For relatively small projects of 500 megawatt to 1 gigawatt (Gw), developers may not invest in the necessary infrastructure.
We are engaging with developers and turbine manufacturers to identify conditions that would encourage them to set up facilities in India. For now, we are reassessing the appropriate level of VGF and waiting for more favourable conditions.
There was concern over 42 Gw of stranded RE capacity due to discoms refusing to sign power purchase agreements. Has this been resolved?
Uptake has improved gradually, but the issue is still a work in progress.
About 16 Gw of the 42 Gw capacity is based on hybrid projects, where discovered tariffs are relatively high, dampening discom interest. At the same time, discoms currently show limited appetite for vanilla solar projects.
We have asked the Solar Energy Corporation of India to design bids in line with discoms’ load profiles. This approach should help address their requirements and improve offtake.
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