PANJIM: The Confederation of Indian Industry (CII) has urged the Goa government to buy solar power locally at a lower cost rather than buying it from Arunachal Pradesh Power Corporation Pvt Ltd (APPCL) at Rs 5.1 per unit.
The industry body has requested the government to fast track the Prime Minister Kusum Scheme and sign power purchase agreements with private landowners in Goa, who have expressed interest to setup plants on uncultivable land and supply power at Rs 4.50 per unit.
Complimenting the government on its efforts to increase the adoption of renewable energy in the State, the CII stated that last year, Goa produced 151 MU of electricity through solar power against the target of 218 MU set by the Joint Electricity Regulatory Commission (JERC).
The renewable purchase obligation (RPO) in 2022 has been increased to 394 MU as demand for electricity has increased in the current fiscal year. Keeping in mind the short-term and long-term challenges to meet the RPO-Solar, CII Goa made a three-point suggestion to the government that will help meet the RPO and will improve the fiscal position of the discom in the State in the process.
It recommended that the government fast track the PM Kusum scheme and sign power purchase agreements with private landowners in Goa, who have expressed interest to setup plants on uncultivable land and not to buy solar power from APPCL at Rs 5.1 per unit.
The CII stated that its Goa member companies have expressed interest to setup large scale solar plants on waste mines. These companies are willing to invest in the plant, machinery and other infrastructural costs to pump power to the grid and hoped that the government will offer rates in the proximity of Rs 4.5 per unit and these interested parties would meet Goa’s future RPO targets and at the same time reduce the financial implication on the exchequer by offering solar power at a lower rate as compared to the current rate offered by APPCL.
It also suggested the government avoid capital-intensive expenditure and switch to new business models like buying solar power through long-term power purchase agreements (PPA) through RESCO companies.
The CII suggested that the government should offer soft financing through EDC to HT consumers to increase solar penetration in the State. This will not have a direct impact on the State exchequer but will have a multi-fold impact on Goa achieving its solar RPO’s.
