Renewable Energy in India: - An Analysis of the Regulatory Environment and Evolving Policy Trends

Therefore, the ability of the Discoms to purchase such power lies at the heart of the success of the national level directional shift from conventional to renewable power. [...] The Electricity Act also empowered the SERCs to specify the terms and conditions for the determination of tariffs, and in doing so, they should be guided by "the promotion of co-generation and generation of electricity from renewable sources of energy”.6 The Electricity Act aimed to make the power distribution sector more transparent and accountable by unbundling the state electricity boards, resu. [...] AD increases the depreciation on the assets during the initial years of the asset’s useful life, which allows the developer to write off more of the value of the asset during the initial years of ownership, thereby reducing the greater proportion of taxable income. [...] In case of failure of the developer to generate minimum specified energy, the developer will compensate the Discom (through the trading company) to the extent of the penalty imposed by the SERC on the Discom on account of non-compliance with RPO. [...] In case of capacity addition under the state solar policies, since the PPA is executed between the developer and the state Discom, the creditworthiness of Discom becomes a significant determinant of the success of the state programme.