Renewables Growth Yet to Shift Thermal-Centric State Procurement Strategies
DISCOMs fall back on thermal for their predictability and established payment mechanisms
February 25, 2026
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Despite record-low renewable energy tariffs, several states have entered long-term thermal power purchase agreements (PPAs) at significantly higher tariffs of ₹5.38 (~$0.059)-₹7.27 (~$0.079)/kWh, reflecting concerns over supply security, baseload requirements, and renewable intermittency.
