States Free To Procure Renewable Energy From Any Developer: Centre Dismisses Telangana CM's Allegations

Union Power and Renewable Energy Minister R K Singh on Tuesday (16 February) dismissed the claims made by Telangana Chief Minister K Chandrashekar Rao that the Centre was forcing the state governments to purchase green energy from certain developers.

"This is a lie", Singh said, adding that the states are free to hold their own bids and buy Renewable Energy from any developer based on those bids, according to a statement by the Ministry of New and Renewable Energy.

Singh was referring to a statement in which the Telangana CM said the Prime Minister was “asking states to purchase solar power produced by companies which give funds to his party", reports Indian Express.

According to the ministry statement, while the Solar Energy Corporation of India (SECI) conducts open bids for Renewable Energy from time to time, the states were free to hold their own bids and buy green energy from any developer instead of procuring power based on bids by the SECI.

The ministry said that the SECI bids are highly competitive, with numerous companies competing and the firms which offer the least tariff are selected transparently through the open bid. Thereafter, States which desire to buy power from those bids do so, as per their requirement, it added.

The ministry noted that the states can also "choose to have their own bids".

"Therefore, the statement by the Chief Minister was totally false,” said the statement.

The ministry further said that the Renewable Energy Purchase Obligation (RPO) was a part of India's International commitments to transition to non-fossil fuel based energy sources.

Under RPO, power distribution companies purchase a certain percentage of their requirements from renewable energy sources. Telangana has highlighted that RPO could become a burden to consumers in the state.

Further, the ministry also rejected the Telangana CM's statement about hydro power, saying that the " the Hydro Power capacity he is talking about, have been and is being constructed because of loans given by PFC and REC; both of which are Government of India companies".

"PFC and REC have together lent Rs 55,000 crore for Kaleshwaram; Palamuru and other Projects. He should be thankful to the Government of India for these projects," the statement said.

The Ministry also rejected the Chief Minister’s statement that the Centre is pressuring states to meter electric connections to farmers.

"Such false and baseless statements do not behove a person who is occupying the august Office of the Chief Minister," the ministry added.