Horizons- October 2013

Posted on November 11, 2013 by


Renewables and the Larger Electricity Supply Eco System

Renewables are a part of the electricity delivery supply chain along with many other elements – non-renewable generating sources, transmission utilities, distribution utilities, consumers etc. What happens in the larger electricity eco-system has a direct bearing on RE and its future in the country. Project success requires not only efficient generation but also the downstream transmission and distribution sectors to work well. Investors should evaluate upcoming opportunities on technical, commercial and regulatory aspects.

Renewables are a part of the electricity delivery supply chain along with many other elements – non-renewable generating sources, transmission utilities, distribution utilities, consumers etc. What happens in the larger electricity eco-system has a direct bearing on RE and its future in the country. Project success requires not only efficient generation but also the downstream transmission and distribution sectors to work well. Investors should evaluate upcoming opportunities on technical, commercial and regulatory aspects.

 

Notwithstanding the number of issues faced by the power sector, statistics on generation capacity have traditionally shown a rosy picture. Big announcements include 4,000 MW of solar thermal capacity in Rajasthan and 750 MW of solar capacity under the National Solar Mission.

Two more UMPPs (8,000 MW) in Orissa and Tamil Nadu, completion of the first unit of Koodanakulam nuclear plant (1,000 MW) as well as a number of smaller thermal power projects are also coming up.

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