UDAY success to bring huge benefits for solar sector in India – Feedback

The Ministry of Power’s Ujjwal DISCOM Assurance Yojana (UDAY), a financial and operational reform scheme for distribution companies (discoms), will bring several important benefits for the solar sector, solar sector research agency Bridge to India said in a report.

“First, offtake risk perception will come down and concerns related to non-payment of dues by discoms should disappear by next year in our view,” the report said. Second, availability and cost of private capital is expected to improve significantly with a cascading impact on competitiveness of solar power, it added. “Finally, improving discom finances will address growing concerns around grid curtailment by improving demand for power (currently many discoms back down the grid rather than buying more power because they make losses on incremental sale of power to rural and residential consumers) and increasing investments in upgradation of transmission and distribution infrastructure,” Bridge to India said.


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