Institutionalise generation-based incentives
In an exclusive interview to POWER TODAY, Sanjeev Aggarwal, Managing Director & CEO, Amplus Energy Solutions emphasises that generation-based incentive needs to be institutionalised to boost the solar rooftop segment. Amplus is also proposing a model to discover the value of rooftop solar power.
Competitive bidding will lower procurement costs
The bids are fairly aggressive and assume most of the project risks to play out favourably. For achieving the good returns, generating PLFs of close to 35 per cent will be necessary through the life of the projects. Hence, location of the project will be very critical.
Green shoots in RECs
Renewable energy certificate (REC) mechanism, a market-based instrument introduced in 2010 to promote renewable energy and facilitate compliance of renewable purchase obligations (RPOs), has not received an enthusiastic response from the obligatory entities till recently.
Clarity on longevity of RECs must to promote RPO mechanism
Success of the RPO policy primarily depends on ensuring that obligated entities comply with this mechanism. This can be enforced through stricter compliance regulations and penalties for non-obligating entities. Possibly, if non-compliant entities can be mandated to purchase REC´s corresponding to their obligation for a calculated period of around 6 months - 1 year in the past, this may support clearing out of the current pending REC´s that are lying unredeemed.
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