While the government has rejuvenated its focus on the sector, power minister has said that states are not purchasing solar power even at the lowest rates. Union Power Minister RK Singh has warned that the country’s installed renewable energy capacity might get stranded as states are not very keen on purchasing solar power even at the lowest rate of Rs 2.44 per unit. Singh wrote a letter to Finance Minister Arun Jaitley voicing his concerns.
He wrote, “If any discom purchases renewable energy at Rs 2.44 per unit, then along with the fixed cost (which they will have to pay thermal stations under PPAs, whether or not electricity is lifted), the total cost per unit would come to Rs 4.04, which is higher than the average price (Rs 3.25/unit) which pay for thermal power,” as mentioned in a report in Financial Express.