Ministry of New and Renewable Energy Current Affairs

India, Germany ink agreement to improve grid integration of renewable energy

India and Germany have signed an agreement on technical cooperation under the Indo-German Energy Programme – Green Energy Corridors (IGEN-GEC).

The agreement was signed between India’s Ministry of New and Renewable Energy (MNRE) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH India on behalf of Germany.

Indo-German Energy Programme–Green Energy Corridors (IGEN-GEC)

The IGEN-GEC programme was launched in 2013 by the Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) and jointly implemented by India’s MNRE and GIZ. The main objective of this programme is to improve the sector framework and conditions for grid integration of renewable energies with conventional power grids.

This programme aims to supports the implementation of India’s Renewable Energy Management Centre (REMCs), Green Energy Corridors scheme which are prerequisite for large scale grid integration of renewable energy to achieve the 175 GW target for renewable energy generation capacity by 2022.

Under this programme, Germany had agreed to provide concessional loans of up to 1 billion euros through German Development Bank (KfW) and up to 10 million euros under technical assistance.

Green Energy Corridor Project

The Green Energy Corridor Project aims at synchronising electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid. Its objective is to synchronise electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.

Need for synchronisation

The is Voltage Fluctuations is the main problem in integrating electricity generated from renewable energy to conventional power grids. The conventional grids face difficulty in absorbing renewable electricity because of its varying voltage and supply. The planned transmission system under Green Energy Corridor Project is made dynamic to handle the voltage variations leading to an integrated grid across the nation.

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MNRE issue bidding guidelines for setting up 1000 MW Wind Power Projects

The Ministry of New and Renewable Energy (MNRE) has issued Guidelines for transparent bidding process for setting up of 1000 MW Wind Power Project connected to inter-state transmission system (ISTS).

The guidelines have been issued for implementation of Scheme launched in June 2016 for providing power purchase agreements for electricity generated from 1,000-MW wind power projects.

As per Guidelines

  • Wind Power Projects will be selected through transparent and open competitive bidding followed by e-reverse auction for setting up of 1000 MW Wind Power Projects.
  • The capacity these Wind Power Projects may go higher than 1000 MW, if there is demand from Buying Entities.
  • Under this Scheme, Discoms of non-windy State/UTs and also the bulk consumers of any State/UTs who intend to buy 10 MW or more can buy wind power.
  • The PTC India Ltd, trading company will sign Power Purchase Agreement (PPA) with wind projects at bidded tariff and back-to-back Power Sale Agreement (PSA) with Buying Entities at a pooled price of the total bids selected.
  • The term of PSA and PPA will be 25 years. Bidder can bid for a minimum capacity of 50 MW and maximum up to 250 MW.
  • The selected bidder is required to injected wind power at ISTS interconnection point and will be also allowed to install 5% of additional rated capacity that will compensate auxiliary consumption and system losses up to interconnection point.

Background

  • The Ministry of New and Renewable Energy (MNRE) had launched a Scheme for setting up of 1000 MW ISTS connected Wind Power Project in June 2016.
  • The objective of the Scheme is to encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes.
  • It seeks to facilitate fulfilment of Non-Solar Renewable Purchase Obligation (RPO) requirement of non-windy states.
  • Provisions also have been made in the Tariff Policy to waive the inter-state transmission charges and losses in order to facilitate transmission of wind power from these windy states to non-windy states.

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