power purchase agreement

In India, state-owned utility Gurajat Urja Vikas Nigam (GUVNL) signed a power purchase agreement with Independent solar power producer Azure Power.According to a statement, the signed power purchase agreement includes Azure Power constructing 260MW solar plant. Once completed, the solar plant will be owned and operated by Azure Power to provide GUVNL with affordable and clean energy over a period of 25 years.

The solar plant is expected to be complete by 2019 to provide customers of GUVNL with energy at a cost of $0.04 per KWh.

The power purchase agreement forms efforts by GUVNL to increase its renewable energy portfolio, secure energy supply in line with growing demands. In total, GUVNL has this past week signed agreements amounting to the provision of 500MW of clean energy.

The state utility is taking advantage of the high levels of solar radiation the state of Gujarat has, to sustain the reliability of its grid network using renewable energy.

Moreover, the introduction of the Gurajat Solar policy of 2009 has hugely contributed towards an increase in the implementation of utility-scale solar projects to help the state reduce its carbon footprint.

Adopted to help utility firms reduce operational expenses by making use of solar energy, the Gurajat Solar policy of 2009 is designed to help address challenges such as lack of funding by encouraging private-public partnerships.

According to a statement, due to the policy, GUVNL and Azure Power were previously able to partner and develop a utility-scale distributed solar system, which in 2013 the World Bank rated amongst the region’s top ten public-private partnership projects.

India and smart meter adoption

In related news, the Indian government has in late August announced plans to subsidise smart meters costs for energy consumers.

According to a local publication, the Ministry of Power is planning to subsidise advanced meters to reduce smart meters price under efforts to ensure all consumers have access to real-time data regarding the way they use energy.

The government will subsidise smart meters for consumers to be able to buy a single unit for below Rs1,000 ($15) from the current Rs15,000 ($234) per unit. Read more...

 

Image Credit: 123rf.