The national wind-solar hybrid policy is likely to keep the power tariffs lower thanks to drastic fall in the capital expenditure cost.
Introduction of the policy will give a shot in the arm to further augment installed capacity and achieve the 175 GW target of renewable energy by 2022 (100 GW solar and 60 GW wind).
With land acquisition cost attached to a project is always a challenge, there have been instances wherein hurdles to acquire land has derailed clean energy projects. Thus, installing solar power at existing wind power farms will give a major fillip to boost solar projects in a short span of time.
Inspite of setting up renewable energy plants, solar power producers are finding it difficult to set up transmission lines. With the latest policy in place, existing transmission infrastructure, already in place, will be optimally utilised for the higher generation that would eventually happen.
However, state-owned distribution utilities would need clarity for procuring such hybrid energy, which the government needs to come up with.
Secondly, the latest Mercom Communications India report has placed India as the third largest solar market in the world. The hybrid policy will further ensure that the country remains amongst the largest renewable market for some more time.