Business Standard

Centre's plan on sale of RE power to states offers only a flickering hope

The power ministry's plan to become an intermediary in the sale of green power generation to states is only a limited solution to the larger problem facing state discoms

The deal will triple Shell’s operational renewables capacity and help it achieve net-zero carbon emissions by 2050, the company said. (Photo: Bloomberg)
Premium

(Photo: Bloomberg)

Subhomoy Bhattacharjee New Delhi
Last week, when 27 cash-strapped state-owned distribution companies, or discoms were barred from the power exchanges, it starkly highlighted the rising scale of risks in the Indian power sector. The demand for power has shot up but states are unwilling to make consumers pay the actual costs of power. The risks have now spread to the renewable energy (RE) generation too, as an order issued by the Union power ministry makes clear. Both the steps also risk pressuring Centre-state relations since they cut down the wiggle room for the discoms drastically. 
 
The weakest link in the power sector are

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 21 2022 | 5:09 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com