House panel calls for single window system and PPA template

NEW DELHI: The Lok Sabha Estimates Committee has recommended the Ministry of Renewable Energy to set up a single window system and formulate standardized power purchase agreement (PPA) templates while setting clear timelines for various approvals to expedite signing of such agreements.

In its preliminary report on solar parks released in December, the committee highlighted delays in finalizing power purchase agreements between solar park developers and states or distribution companies (discoms) as one of the major challenges in achieving the 40GW installation capacity target The parks will be completed by 2023-24. The company blamed the delay in signing the power purchase agreement on a lack of clear instructions from the Ministry of Energy, a lengthy internal approval process and the involvement of multiple ministries after the tender was finalized.

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In its latest report to the Lok Sabha, the panel said the Union Ministry of New and Renewable Energy told the committee that a power purchase agreement is a bilateral agreement signed between a solar project developer and a power distribution company, either by the ministry or any other central government department. Not directly involved in its execution.

The Budget Committee consists of 30 members of the Lok Sabha and is responsible for reviewing the government’s budget estimates and expenditures. No minister can be a member of this group.

The Ministry of Renewable Energy also pointed out that the Federal Ministry of Power has issued standard bidding guidelines under Section 63 of the Electricity Act, 2003, providing an indicative timetable for the bidding process.

“The committee was not satisfied with the department’s reply as it did not address the committee’s recommendations to streamline processes and reduce bureaucratic bottlenecks,” the panel, headed by BJP Lok Sabha member Sanjay Jaiswal, said in its report submitted on Wednesday.

“The Committee therefore reiterates its previous recommendations to establish a single window system and develop a standardized Power Purchase Agreement template with clear timelines for the approval process at all levels within the Ministry. The Committee hopes that the Ministry will take immediate action to implement these recommendations and provide them with Communicate progress made.

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The signing of power purchase agreements has slowed recently. September, Mint According to reports, about 30GW of solar projects have not yet started due to delays in signing power purchase agreements and power supply agreements.

The Ministry of Renewable Energy, headed by Pralhad Joshi, told the committee that out of the seven solar parks being developed by public sector undertakings, only one 100 MW solar park is being built by India in Chhattisgarh. The Solar Energy Corporation (Seci) has been entrusted with the operation while the remaining six solar parks are being implemented and the progress is being monitored regularly and issues related to them are being addressed from time to time.

The committee also noted in its initial report that some solar projects have experienced delays in finalizing and implementing power evacuation systems and transmission infrastructure due to their location in forested areas. The company said that the Barethi Solar Park (630MW) and Chhatarpur Solar Park (950MW) located in the Panna Tiger Reserve in Madhya Pradesh are such projects.

In its response to the panel, the Ministry of New and Renewable Energy said it had earlier canceled some parks as the land identified for development of solar parks was forest land. Chhatarpur Solar Park also fell into this category and was therefore cancelled.

Furthermore, the ministry also discussed similar issues (Solar Parks in Kaza and Kinnaur in Himachal Pradesh) with the Union Ministry of Environment, Forest and Climate Change to provide relaxation, but subsequently it did not materialize, leading to cancellation of the solar parks.

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“Therefore, the ministry in its subsequent proposal for the solar park plan requested the relevant agencies to ensure that the land does not have any encumbrances or any restrictions, including deforestation that may hinder development. Only after ensuring this, approval of the solar park plan will be considered capacity proposals,” the ministry told the committee.

Solar energy is an important part of India’s ambitious goal of reaching 500 GW of non-fossil power generation capacity by 2030.

According to statistics from the Central Electric Power Administration, as of October, the total renewable energy power generation was 203.18GW, with an increase of 24.2GW in the past year.