In a bid to meet its rather ambitious target of 175 GW of installed renewable energy target by March 2022, the Indian Ministry for Power, Coal, and Renewable Energy, in November last year, announced that all charges relating to inter-state transmission of electricity from renewable energy projects would be abolished.

This is a move that is being seen as crucial for the successful implementation for this target. The government is aiming at setting up about 20 GW of solar capacity across the country through 25 ultra mega solar power projects. Since all Indian states are obliged to purchase solar power but lack the necessary resources to generate power in-state, power from these projects will be supplied to neighbouring states as well.

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Source: Hindu

Already, nine states are reported to be willing to get rid of the long list of charges levied on all inter-state transmissions. Among others, these include banking, cross-subsidy and wheeling. Abolishing of these charges will have a positive impact on the final cost borne by consumers. This move is also expected to make renewable energy-based power attractive to both commercial and industrial consumers that want low-cost renewable energy-based power supply.

India’s current target for renewable energy’s market share in the power sector stands at 40%, to be achieved by 2030. The government is also aiming at 15% share of renewable energy in the country’s total power consumption by 2022, which will include at least 3% specifically from solar power. To this end, it has already launched the ‘Green Energy Corridors’ project to implement a grid of transmission lines designed for renewable energy projects.

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