Pvt Companies asks govt to switch to preferential tariff model
23/09/2014 15:47
Private renewable energy firms have asked the government to switch to the "preferential tariff" route which is more economically viable than the competitive bidding model for future green power projects, said the media report.
According to a Power Ministry official, private power generation firms are asking the government to go back to the preferential tariff model for setting up renewable power projects.
Preferential Tariff is the tariff fixed by the Appropriate Commission for sale of energy from a generating station using renewable energy sources to a distribution licensee.
According to the report, under the competitive bidding model, the firms quote lesser tariff than the threshold set by the regulator and the lowest bidder is awarded the project.
Going forward, the government is expecting USD 100 billion investment in the renewable energy sector in the next four years as it firms up a new policy framework for the same.
The MNRE is currently working on a renewable energy policy to attract investments in the space by providing tax breaks and cheaper loans.
23/09/2014 15:47
Private renewable energy firms have asked the government to switch to the "preferential tariff" route which is more economically viable than the competitive bidding model for future green power projects, said the media report.
According to a Power Ministry official, private power generation firms are asking the government to go back to the preferential tariff model for setting up renewable power projects.
Preferential Tariff is the tariff fixed by the Appropriate Commission for sale of energy from a generating station using renewable energy sources to a distribution licensee.
According to the report, under the competitive bidding model, the firms quote lesser tariff than the threshold set by the regulator and the lowest bidder is awarded the project.
Going forward, the government is expecting USD 100 billion investment in the renewable energy sector in the next four years as it firms up a new policy framework for the same.
The MNRE is currently working on a renewable energy policy to attract investments in the space by providing tax breaks and cheaper loans.
