The Ministry of New and Renewable Energy proposed ‘reverse bundling’ scheme for balancing between coal-fired power and renewable.

About Bundling Scheme:

• To ‘bundle’ the solar energy with the cheaper coal fired power.
• This is done for pushing renewable power in a market driven manner.
• The solar energy generated using photovoltaic cell fall down dramatically. So, this scheme became obsolete.

About the new proposal:

• It is to bundle the cheap renewable energy with the costlier coal fired power.
• It will ensure 24*7 uninterrupted electricity.
• The draft policy stipulates supply of 51% renewable energy with or without energy storage bundled with 49% thermal power component. 

Concerns:

• The tariff of the bundled electricity is higher than the average of renewable energy and coal power. Because, renewable energy can supplied for 6 to 8 hours.
• Coal fired plants are postponing the deadlines to follow the emission controlling systems.
• Coal fired plants capacity utilization has falling year on year.
• Combining renewable energy with coal power counters India’s climate objectives.
• Poor Financial health of Discom's for procuring the power.
• Currently, Electricity from renewable energy constitutes about 10 percent of the total energy generation of the country.
• According to the International Energy Agency, By 2024, India’s coal demand is expected to grow more than any other country in absolute terms.