![Solar developers can set up higher generation capacity than contracted: MNRE](http://media.assettype.com/psuwatch%2Fimport%2Fwp-content%2Fuploads%2F2022%2F02%2FRK-Singh-psuwatch-6.jpg?w=480&auto=format%2Ccompress&fit=max)
New Delhi: Minister of New and Renewable Energy RK Singh said on Wednesday that solar energy developers can install direct current (DC) capacity which can be higher than the contracted alternate current (AC) capacity. Developers convert DC to AC for power supply to discoms. The ministry also said that any person is entitled to set up any capacity which they desire to set up, and sell power to any entity which may want to buy it.
Speaking on the issue, Singh said, "Ensuring ease of doing business for the bonafide producers/developers is of paramount importance to the country. We are committed to providing a hassle-free path to the developers of renewable energy which could help India to achieve energy security in future along with a cleaner and sustainable environment."
MNRE has received representations from various Solar Developers/ Solar Developer Associations that recently few states have raised questions and concerns around globally adopted practice of installing additional DC capacity, over and above the nameplate / contracted AC capacity, with the objective of meeting the committed Capacity Utilisation Factor (CUF) in Power Purchase Agreements (PPAs) / Power Supply Agreements (PSAs).
MNRE has received representations from various Solar Developers/ Solar Developer Associations that recently few States have raised questions and concerns around globally adopted practice of installing additional DC capacity, over and above the nameplate / contracted AC capacity, with the objective of meeting the committed Capacity Utilisation Factor (CUF) in Power Purchase Agreements (PPAs) / Power Supply Agreements (PSAs). It has further been stated that the State Governments feel that installation of such additional capacity serves as a medium for additional revenue generation for the developers and that such additional DC capacity cannot be allowed. The issue has been examined in the Ministry of New & Renewable Energy (MNRE), and it is noted that:
Accordingly, all concerned are hereby advised that:
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)