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Thermal power to benefit from introduction of ‘Time of Day’ (ToD) tariffs in India

<p>MoP has made efforts to move towards &lsquo;time of day&rsquo; tariff system to balance the interest of traditional and emerging power sectors. &lsquo;Time of day&rsquo; pricing, prices will be allowed to go higher when suppliers are less, such as at night, when solar farms are no longer supplying power to the grid. The prices will be higher at night and during peak hours.</p> <p>ToD pricing will allow power distribution companies to pay a higher price to coal-based power plants at night, in a way compensating them for business lost due to competition from solar power producers during the daytime. India, which has around 150-200 GW of thermal power generation capacity, has aggressive plans to add solar power generation capabilities. Last year, the country generated 5.53 GW of solar power capacity. This year, the target is to add 10 GW, before raising it to 20 GW of addition per year.</p>