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What happened
Girish Tanti, Vice Chairman of Suzlon Group, has expressed optimism that the Indian government will convert over 40 GW of uncontracted renewable energy capacity into firm and dispatchable renewable energy (FDRE). This conversion aims to integrate wind, solar, and battery energy storage systems, ensuring reliable energy supply during peak demand. Currently, there are about 45.34 GW of capacity awaiting power purchase agreements (PPAs). The government is exploring solutions for these projects, with renewable energy implementing agencies proposing auctions for the tendered capacity. Tanti believes that consumers will accept the higher tariffs associated with FDRE, as it offers a more dependable clean energy source compared to standard wind and solar projects. He noted that FDRE could provide 24/7 power at competitive rates compared to coal, which is crucial for India's goal of achieving 500 GW of non-fossil fuel-based energy capacity.
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Key insights
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1
FDRE Reliability
FDRE combines renewable sources for consistent energy supply.
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2
Consumer Acceptance
Higher tariffs for FDRE may be accepted due to reliability.
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3
Government Reassessment
The Indian government is evaluating uncontracted renewable projects.
Takeaways
The anticipated shift to FDRE could significantly enhance India's renewable energy landscape, making it more reliable and competitive against traditional coal power.