Govt proposes pool of old thermal power units to balance more renewable

Pool to address grid balancing concern as states relinquish costly thermal power to procure more RE

The Union Ministry of Power has proposed creating a pool of efficient thermal power units that are more than 25 years old to act as a balancing source for the increasing share of renewable energy in the electricity grid.

The move comes in the wake of several states/power distribution companies (discoms) relinquishing costlier power purchase agreements (PPAs) seeing that they have surplus power and want to increase their renewable energy purchase.

If implemented, this will benefit the country’s oldest state-owned power generator NTPC, which has been at the receiving end of the PPA renouncement.

“The emergence of cheaper renewable energy,