RENEWCONNECT - All about renewables & power sector

Here are some of the different taxes that are present apart from the regular taxes that we pay to the government in our respective countries: 1. Super-Rich Tax Definition: A tax targeting individuals with extremely high wealth or income, often through wealth taxes or additional income tax surcharges. Purpose: Reduce income and wealth inequality, raise revenue for social programs. Examples: France proposed a “Zucman tax” on billionaires. U.S. proposals include a Billionaires Income Tax Act and state-level wealth taxes. Key Point: Effective rates for the ultra-rich can exceed 45–60% when considering global taxes, though loopholes allow avoidance strategies like foundations and offshore accounts. [truthout.org] , [taxfoundation.org] , [trp.tax] 2. Pigouvian Tax Definition: A tax imposed on activities that create negative externalities (costs to society not borne by the producer/consumer). Purpose: Internalize social costs and correct market inefficiencies. Examples:...

Here’s a complete A-to-Z guide on Carbon Markets, structured from basic concepts to advanced strategies and future trends: A. What Are Carbon Markets? Carbon markets are systems where carbon credits —representing one metric ton of CO₂ (or equivalent greenhouse gases) reduced or removed—are bought and sold . They aim to put a price on carbon emissions , incentivizing reductions and funding climate action. Why they exist: To help achieve global climate goals under frameworks like the Paris Agreement , which targets limiting warming to 1.5°C. [agecon.mgc...fe.uky.edu] B. Types of Carbon Markets Compliance Markets Mandatory systems regulated by governments. Examples: EU Emissions Trading System (EU ETS) California Cap-and-Trade China’s National ETS Operates via cap-and-trade or carbon tax mechanisms. [carboncx.io] Voluntary Carbon Markets (VCM) Optional participation by companies or individuals to meet ESG or net-zero goals. Credits issued under standards like Verra...

  1. Core Components of Electricity Pricing Electricity prices reflect the full cost of delivering power , which includes: Generation Costs : Fuel (coal, gas, oil), renewable integration, carbon pricing, and plant operating costs. Transmission & Distribution (T&D) : Infrastructure maintenance, grid modernization, and loss recovery. Regulatory & Policy Costs : Taxes, subsidies, renewable obligations, and cross-subsidies. Retail Add-ons : Metering, billing, and customer service charges. [eia.gov] , [energy.con...lation.com] 2. Market Structures and Price Formation Regulated Markets : Prices set by regulators using cost-plus or performance-based tariffs . Deregulated Markets : Prices formed via wholesale bidding in power exchanges and bilateral contracts. Wholesale vs Retail : Wholesale prices depend on marginal cost of generation , fuel prices, and grid constraints. Retail prices include wholesale cost + T&D + taxes + fixed charges. [nyiso.com] , [callmepow...

 Here is the comprehensive overview on the energy transition took place in the energy and power sector and how it is inter-connected with the other commodities is as follows: 1. What is Energy Transition? Energy Transition refers to the global shift from fossil fuel-based energy systems (coal, oil, gas) to renewable and low-carbon sources such as solar, wind, hydro, and green hydrogen. It involves structural changes in production, distribution, and consumption of energy to achieve sustainability, reduce greenhouse gas emissions, and meet climate targets like those in the Paris Agreement . Key pillars include: Decarbonization : Reducing CO₂ emissions. Energy Efficiency : Optimizing consumption. Energy Access & Security : Reliable and equitable supply. Technological Innovation : Smart grids, storage, AI-driven optimization. [en.wikipedia.org] , [ibm.com] , [diversegy.com] 2. History of Energy Transition Energy transitions have occurred throughout human history: ...

 Here’s a comprehensive update on Green Hydrogen tenders in India as of 2025: ✅ 1. Overall Tender Landscape Total tenders in 2025 : 465 live tenders for green hydrogen projects across India, including production plants, transmission systems, and infrastructure development. (Source: TenderDetail ) ✅ 2. Key Government Initiatives National Green Hydrogen Mission (NGHM) : Launched in Jan 2023 with an outlay of ₹19,744 crore. Target: 5 million metric tonnes per annum (MMTPA) by 2030. Incentives under SIGHT Scheme : Mode-1 Tranche-I : 4.12 lakh tonnes/year awarded to 10 companies. Electrolyser manufacturing : 1,500 MW/year capacity awarded to 8 companies. Subsidy: ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3). (Source: PIB ) [pib.gov.in] ✅ 3. Major Auctions & Winners Second Auction under SIGHT (Jan 2025) : Capacity: 450,000 tonnes/year . Winners: Reliance Green Hydrogen, L&T Energy, Waaree Clean Energy, AM Green , Oriana Power (lowest incentive ...

Here’s a comprehensive timeline and current status of the Fiscal Responsibility and Budget Management (FRBM) Act and its guidelines , from inception to the latest updates: 1. Origin and Purpose Proposed: 2000 by Finance Minister Yashwant Sinha. Enacted: 2003; implemented from July 2004 . Objective: Ensure fiscal discipline and macro-economic stability . Reduce fiscal deficit , revenue deficit , and public debt . Enhance transparency in fiscal operations. Initial Targets: Eliminate revenue deficit by 2008–09. Reduce fiscal deficit to 3% of GDP by 2008–09. 2. Key Features of FRBM Act Mandates presentation of: Medium-Term Fiscal Policy Statement Macroeconomic Framework Statement Fiscal Policy Strategy Statement with Union Budget. Prohibits borrowing from RBI except under exceptional circumstances. Introduced escape clause for ...

Understanding Air Pollution Air pollution refers to the presence of harmful substances in the atmosphere that degrade air quality and pose risks to health, ecosystems, and climate. It is a global challenge with local consequences, affecting urban and rural environments alike. As on 2025, the following are the list of challenges and methods to minimize the pollution levels and development of the action plan for the CHANGE Major Pollutants in the Atmosphere Particulate Matter (PM2.5 & PM10) – Tiny particles that penetrate lungs and bloodstream. Nitrogen Oxides (NOx) – Emitted from vehicles and industrial processes. Sulfur Dioxide (SO₂) – From burning fossil fuels and smelting. Carbon Monoxide (CO) – Incomplete combustion of fuels. Ground-Level Ozone (O₃) – Formed by chemical reactions between NOx and VOCs. Volatile Organic Compounds (VOCs) – From solvents, paints, and fuels. Greenhouse Gases (CO₂, CH₄) – Contribute to climate change. Methods to Minimize Air Pollution ...

  Overview The Central Electricity Regulatory Commission (CERC) is a statutory body constituted under the Electricity Regulatory Commissions Act, 1998. It plays a pivotal role in regulating the tariff of central generating stations, interstate transmission of electricity, and promoting competition, efficiency, and economy in the electricity sector in India. Mandate CERC's mandate includes regulating tariffs for central sector utilities, facilitating interstate transmission, ensuring grid discipline, and promoting open access in transmission. It also advises the government on policy matters and monitors the performance of licensees. Key Functions - Determining tariffs for central generating stations and interstate transmission. - Regulating interstate transmission of electricity. - Facilitating development of power markets. - Promoting competition and efficiency in the electricity sector. - Adjudicating disputes involving generating companies and transmission licensees. Governance S...

  🏛️ Overview of the Draft Electricity (Amendment) Bill, 2025 The Electricity (Amendment) Bill, 2025 seeks to revise the Electricity Act, 2003 to address persistent challenges in India’s power sector and align it with the country’s developmental vision of “Viksit Bharat @ 2047.” The amendments aim to improve financial sustainability, promote clean energy, enhance regulatory accountability, and support industrial competitiveness. 🔑 Key Objectives of the Amendment Ensure financial viability of distribution companies (DISCOMs) Promote cost-reflective tariffs Enable open access and competition Support clean energy transition Strengthen regulatory institutions Improve ease of living and doing business ⚡ Major Amendments and Their Implications 1. Financial Viability and Tariff Rationalization Cost-Reflective Tariffs : Regulatory Commissions must now determine tariffs that reflect the actual cost of electricity supply. This aligns with the Supreme Court’s 2025 judgment...

Regulatory Assets (RAs) are deferred costs recorded by power distribution companies ( DISCOMs ) when their average cost of electricity supply (ACS) exceeds the revenue they collect (ARR) through tariffs. Instead of immediately increasing consumer tariffs to cover this gap, State Electricity Regulatory Commissions (SERCs) allow DISCOMs to recover the shortfall in the future—thus creating a regulatory asset . 🧾 How It Works (Example) Average Cost of Supply (ACS) : ₹7.20/unit Approved Tariff (ARR) : ₹7.00/unit Revenue Gap : ₹0.20/unit Units Sold : 10 billion Regulatory Asset Created : ₹2,000 crore This ₹2,000 crore becomes a regulatory asset , to be recovered later through future tariff hikes, often with interest. 📉 Why Are they Created? Non-cost reflective tariffs : Tariffs kept low for political or social reasons. Delayed subsidies : State governments delay payments for subsidized consumers. Fuel price shocks : Sudden increases in coal or gas prices. Operational ...