For the first time in the history of the Indian power sector, capacity addition in renewable energy surpassed conventional power — thermal and hydro cumulative. This comes in the wake of the government’s bullishness towards awarding solar and wind power projects via bidding. So, while the wind power sector saw its first bidding, solar power projects awarded crossed the 10-gigawatt mark. Moreover, the tariffs for both went below Rs 3.5 per unit. The slowing capacity addition in thermal power will impact the surplus coal supply that Coal India has built, owing to its one-billion tonne target by 2019. Capacity addition in hydropower, too, has been stagnant, as the Centre has decided to shelve its subsidised fuel-supply program. This is likely to impact the grid, which was built keeping in mind surplus conventional power. After this achievement, maintaining grid stability should be the next task of the government.
