As part of its attempt to boost green energy, the Cabinet on Thursday amended the Power Tariff Policy to make it mandatory for state governments to have solar energy as three per cent of their total power purchases by 2022.

The solar power purchase obligation for states may start with 0.25 per cent in Phase-I, which stretches to 2013 and goes up to three per cent by 2022, an official statement said.

The present amendment in the tariff policy is according to the National Solar Mission Strategy, which was approved by the Cabinet on November 19, 2009, the statement added.

According to the amendment, the power purchased by the state electricity boards (SEBs) or other state utilities will be complemented by the solar specific Renewable Energy Certificate (REC) mechanism through which solar power generation companies will sell certificates to the buyers.

The certificate will also help the buyers meet their solar power purchasing obligations, the statement said.

Earlier, the ministry of power had asked the Cabinet to amend the tariff policy 2006, so that state electricity regulators can fix a percentage of energy purchased from solar power.

The Cabinet also approved a new policy for allocation of electricity that will be generated by upcoming state-run thermal power plants. As much as 50 per cent of the electricity generated will go to the home state in which the power plant is located while 35 per cent will go to the other constituents of the region and 15 per cent will be put at the disposal of the Centre.

The overall target generation capacity of one lakh MW has been fixed for the 12th Five Year Plan (2012-17).

The power sharing proposal pertains to 14 power projects – Gadarwara, Lara, Talcher Expansion, Kudgi, Darlipalli, Gajmara, Barethi Gidderbaha, Katwa, Dhuvran, Khargone, Pudimadka, Bilhaur and Kathua of the National Thermal Power Corporation (NTPC) coming up during the 12th and 13th Plans and all thermal plants of central public sector undertakings (CPSUs), an official statement said.

At present, power is shared as per the Gadgil formula, which provides for 10 per cent power as preferential allocation to home state, reserves 75 per cent for constituent states, including the home state, and retains the rest at the Centre’s disposal.

Under the rule, central power generating stations at present can provide a maximum of 33.3 per cent of the electricity to the home state.

Enhancement of allocation to 50 per cent to the home states is the only new element in the present proposal, the statement said.

NTPC’s Barethi project in the Bundelkhand region of Madhya Pradesh is expected to spur development of infrastructure in the region, it added.

source: indiatoday.intoday

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