The United States Government has of recent times announced a tender to solicit solar energy. Details of the bid included the amount of voltage that stood at 100 GW. This would represent an increase from the previous years’ 10 GW. It came out as a move to widen the use of clean energy in the United States. The tender is to be presented in July this year. Other details include that it has provisions that are necessary for boosting internal module energy and manufacturing storage capacities. They are known as renewables and are in a position to replace coal as a source of energy. India has welcomed the idea, and it is shifting from fossil-based fuels and is tracking back on using renewables instead.
Plans are underway to install 175 GW of renewables by the year 2020. During the 2015 Paris Agreement, India promised to adhere to the agreements that were deliberated and signed. However, with the increased presence of the coal power plants, the time and costs of operating them have outpaced the benefits of the renewable energy. It has caused a massive load of pressure on PSU financial institutions as they try to balance the equations. The banks are diverting their revenue in refinancing the delayed coal-based portfolios rather than giving credit to the renewable energy sources’ projects. For instance, in 2017, nearly 17 GW of coal-fired thermal power was refinanced at the cost of $9.35 billion dollar.
As of recent research case studies, 20.3% of India’s 199 GW thermal power has been categorized as stressed assets. Two 520 MW are almost being liquidated as ten other plants may face the same fate. The reason for all this is that there is no power purchase that is taking place. Most of the PPAs are taking place in the renewables. Facts have it that existing coal-based power projects are functioning at low Plant Load Factors. They are getting substantial costs as they provide public utilities. They are claiming the necessity of having power to full capacity is no longer needed as it were years back.
Renewables have taken a crucial role in this turnover in the fuel sector in the U.S.
Also, the coal-based power-plants are becoming unpopular and non-competitive when compared to wind and solar energy. The current tender that is in its final stage, will choke the coal power plants out of business. Furthermore, the coal plants have in the past been a cause for mass displacement of people and disrupting their lifestyles.