At a time when private discoms and the Delhi government are struggling to provide cheap electricity to the people in the Capital, the New Delhi Municipal Council (NDMC) has allowed its residents to install solar panel on rooftops to generate electricity. However, the power generated will have to be sold to the civic body, and residents cannot utilise it for their consumption.
The Ministry of Power (MoP) has proposed amendments to the country’s existing tariff policy of 2005 (refer). Promotion of renewable generation sources has now been added as the fifth objective of the policy. There are three salient features for the solar sector in this proposed amendment:
- Renewable purchase obligation (RPO) has been revised to 8% by 2019
- Discoms will now be allowed to procure bundled solar power from the existing conventional power generators on a cost plus basis to meet their RPOs
- Renewable sources have been exempted from inter-state transmission charges