Govt working to make obligations under power purchase pacts binding: Power Minister
New Delhi: The government is working to make obligations under powerpurchase agreement (PPA) statutory binding, ensuring all discoms have PPAs to cover 100 percent requirement, Power Minister R.K. Singh has said.
“I have called a meeting of energy ministers of all states on November 10-11, I will tell them that I am going to make obligations under PPAs statutory binding, that all discoms must have PPAs to cover 100 per cent of requirement and that there will be penalties for not paying electricity bills on time,” Singh said at the ASSOCHAM Global Investors’ India Forum.
Singh said that the government will ensure timely payment of electricity bills with the adoption of smart metering or pre-paid metering.
“I am also going to provide in the law penalties if power bills are not paid promptly and the amended law will also provide that the RPOs (renewable purchase obligations) will be obligatory, it will be a statutorily legal compulsion,” he said.
The government is not going back on its commitment to generate 30% of its energy from renewable sources, he added.
Singh said that green energy sources are eventually going to gather an edge over fossil fuels, largely petroleum. This however, would require investment in technology, grid balancing, green corridors, in peaking power, he said.
“By and large we see electricity emerging as the primary source of energy as electric mobility is more efficient than mobility by petrol or diesel, the only thing required is the prices of the battery of storage systems to come down,” Singh said.
He added that he had called a meeting of all vehicle manufacturers and storage system providers, asking them to invest in these sectors.