The Ministry of Power on Saturday announced some new rules to make the sector economically viable. The objective of these rules is to reduce the financial pressure from various stakeholders in the power sector and to meet the cost of energy generation quickly.
The ministry has notified new rules for sustainability in the power sector and promotion of clean energy, a statement said. Through these, India will also be able to fulfill its commitment towards climate change. The statement said that power sector investors and other stakeholders are concerned about the cost overruns due to changes in law, reduction in renewable energy and other related issues.
The rules notified by the Ministry of Power under the Electricity Act, 2003 are in the interest of the consumers and other stakeholders, the statement said. These rules include the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021. The second law pertains to electricity (promoting production from renewable energy sources).
The ministry said that due to the change in law, early recovery of cost is very important as timely payment is essential for the power sector. The ministry said, “Energy is changing all over the world. India has also expressed its commitment to change in this area. India has internationally committed to renewable energy capacity of 175 GW by 2022 and 450 GW by 2030. With this, green and clean energy will be available to the consumers. Under these, the regulation of power generation or cut in supply will not apply to the power plants whose operation is mandatory.
