The Ministry of New and Renewable Energy (MNRE) put out a 'Draft Scheme for Supply of Round-The-Clock (RTC) Power from RE Power Projects, complemented with Power from Thermal Power Projects' and called for public comments.

We find that the current proposal to provide RTC power by bundling power from RE and thermal projects will not address the issues with grid integration before the sector. Without establishing the need for RTC, long term power in states and without providing DISCOMs with flexibility in procurement, such a scheme could result in resource lock-ins, increase in unutilized or backed down thermal capacity, high burden of contractual payments for stranded assets with DISCOMs. These would in turn severely affect DISCOM finances and the viability of the renewable energy sector. It is crucial that any scheme to address the issues of grid integration considers alternative options to provide flexibility in power procurement to DISCOMs in an optimal and cost-effective manner.

Hence, rather than insisting only on long-term coal and RE bundled PPAs, we suggest:

1. Ensuring the possibility of various bid orders and specifications on DEEP.
2. Ensuring robust market platforms and instruments for transparent trading for RE power.
3. Issuing guidelines to inter-state and intra-state trading licensees to introduce RE complementary products.
4. Ensuring serious power sector modelling including production cost simulation as part of the way forward.