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Solar power PPAs: Tariff needs to be reduced, says Punjab minister
Stating that the pressure of high cost of solar power is borne by the people of Punjab, Verka directed officials to explore the possibility of reduction in power tariff in PPAs
Punjab new and renewable energy minister Raj Kumar Verka on Saturday emphasised the need for reduction of tariff in power purchase agreements (PPAs) for solar power projects.
Stating that the pressure of high costs is being borne by the people of Punjab, he directed officials concerned to find legally sound reasoning and methodology for exploring the possibility of reduction in tariff.
Presiding over a meeting in this regard, the cabinet minister said that PPAs were signed in three phases about seven years back when the cost of solar power at the national level was much higher.
Verka said the state is exploring all ways and means, including possibility of bringing a legislation in the state assembly, to reduce the tariff of these high-cost PPAs as electricity laws are a concurrent subject.
“However, there is a need to look at the possibility of reduction in tariff being paid by the Punjab State Power Corporation Limited (PSPCL) for these projects in view of the much lower cost of solar power at present,” he said.
Giving a complete overview of the PSPCL’s power purchase scenario, its chairman-cum-managing director (CMD) A Venu Peasad said the current power purchase rate is quite low. He said efforts are being made by the corporation for exploring the possibility of reduction in tariff for PPAs signed much earlier.
