0.1747
900 319 0030
x

Infrastructure

iasparliament Logo
October 14, 2017

What do you understand by the term Grid Parity? Examine the challenges involved in wind energy sector to attain it.

Refer - Business Line

1 comments
Login or Register to Post Comments

IAS Parliament 6 years

KEY POINTS

Grid Parity

·         Grid parity occurs when an alternative energy source can generate power at a levelized cost of electricity (LCOE) that is less than or equal to the price of purchasing power from the electricity grid.

·         In other words, Alternative energy sources achieve Grid parity, when their electricity can be purchased for the same amount of money as electricity from conventional sources.

·         The term is most commonly used when discussing renewable energy sources, notably solar power and wind power.

Competitive bidding

·         Competitive bidding in the wind power segment, which has replaced the earlier feed-in tariffs where a fixed price was ensured for power producers, may put temporary pressure on wind sector players, but will have positive impact in the long term.

Challenges in Wind energy sector

·         Stagnating demand.

·         Lack of policy clarity in some high wind potential States.

·         Lack of clarity on frequency of reverse auctions.

·         Lack of quality standards.

·         Lack of a policy on inter-State power transmission that prevents developers from building capacity for open access power sales.

·         Late payments from Discoms as well as grid curtailment that forces developers to back down generation.

ARCHIVES

MONTH/YEARWISE - MAINSTORMING

Free UPSC Interview Guidance Programme