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Tariff competitiveness offered by the solar and wind power projects are major factor determining its profitability and extent of investment in it. Discuss the steps that are needed to ensure tariff competitiveness of solar and wind power. (250 words)

Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc..

6. Tariff competitiveness offered by the solar and wind power projects are major factor determining its profitability and extent of investment in it. Discuss the steps that are needed to ensure tariff competitiveness of solar and wind power. (250 words)

 

Difficulty level: Tough

Reference: Indian Express

 

Why the question: The switch from a single to a two-part tariff structure for renewables has to be made right now as we are at the cusp of ramping up our renewable generation and it takes time for matters to get streamlined as we have seen in the past.

Key Demand of the question: To write about the steps to make solar and wind power tariff competitive.

Directive word: 

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction: 

Start by giving the extent of solar and wind power in India and further potential in India.

Body:

First, Write about the existing tariff structure in brief.

Next, mention as to how tariff competitiveness affects solar and wind power – profitability, investment potential, adoption and losses mitigation.

Next, write about the steps that are needed to ensure tariff competitiveness in solar and wind power.

Conclusion:

Conclude with a way forward.