Kerala State Electricity Board opts for reverse bidding
The Kerala State Electricity Board Limited has decided to opt for a reverse bidding process to purchase 200MW of solar power from the domestic market.
The reverse bidding would explore the possibility of the power utility getting solar power at a rate lower than the one fixed by the state electricity regulatory commission for each unit of grid-connected solar power.
The state electricity regulatory commission had fixed the rate per unit of solar power at Rs 7. The reverse bid is expected to kick up competition among the solar power generators who are willing to supply 200MW of solar power to the board at a lower rate.
As per the central electricity act, every power utility in the country has an obligation to purchase a certain percentage of renewable energy as compensation to the damage caused to the environment by generating electricity through non-renewable sources. The renewable energy obligation that was 0.25% till recently, has been increased to 0.5% of the total power generation in the respective states after the Modi government came to power.