By PTI
Suzlon Group Vice Chairman Girish Tanti expects the government to convert over 40 GW of uncontracted renewable energy capacity to the FDRE option, which is more reliable compared to plain wind and solar projects.
An FDRE (Firm and Dispatchable Renewable Energy) project integrates advanced solar, wind and battery energy storage systems (BESS) to enable reliable energy dispatch during the peak demand.
As per an official document, there is around 45.34 GW capacity for which power purchase agreements (PPAs) are yet to be signed. The government is actively working on solutions for these awarded projects.
The winners of these tenders are also engaged with distribution companies (discoms), which are the potential buyers, to reach an understanding for PPAs.
Meanwhile, the four renewable energy implementing agencies (REIAs), namely SECI, NTPC, NHPC and SJVN, have proposed the auction of tendered electricity capacity as an option to solve the issue.
“Right now, this capacity is under reassessment by the Government of India. Once they evaluate, they will come up with a solution. My hunch is it will move to become FDRE,” Tanti said.
His comments assume significance as India aims to meet the goal of having 500 GW capacity through non-fossil fuel-based sources.
Tanti exuded confidence in the acceptance of FDRE by consumers despite the tariff difference, as it is a more reliable source of clean energy compared to simple wind and solar.
Tariff rates of the solar projects range from Rs 2.38 to Rs 2.56 per unit, while those of wind projects range from Rs 3.70 per unit to Rs 3.90 per unit.
He said price discovery through FDRE has happened at Rs 5.5 per unit.
“At Rs 5.5 per unit today, you can get 24X7 power with wind, solar and battery, which is still cheaper than your coal power. Now, we are competing with coal for the 24-hour supply. Most likely that capacity in some form or another will become FDRE,” Tanti said.
Image Source: Suzlon
