Any PPA logically would contain 3 main clauses apart from other conditions :
(1) the amount of electricity to be supplied per day
(2) negotiated price per unit
(3) penalties for non-compliance.
So it has been grey area until recently. The power producer would tend to quote only for the amount of electricity it could produce in day time because of lack of Energy storage solutions for supplying in the night. Thermal power is always there to the rescue to feed the grid at night time when solar energy not available.
Thus is totally inefficient way of handling Renewable projects of high capital intensive nature as its full potential of power 24×7 is not exploited a
So no wonder all renewable energy projects failed in the past and the industry became sick…Renewable energy sources were initiated way back in 1990’s and companies like NEPC Micon , Suzlon in wind and Tata-BP solar were pioneers.
Now there is clarity in technology for renewable storage solution options namely (1) Electrolyser / Green hydrogen/ Fuel cell (2) Battery storage (3) Pumped hydro storage (4) Compressed air storage . .
And so there is clarity in Govt policy…and now it is mandatory for the power producer to instal energy storage solution ( refer link below) and PPA calls for Total power units to be supplied during day & night apart from negotiated rates and penalty etc
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