Trina Solar’s 2023 Profit Up 50% as Module Shipments Soar

Solar Park DPRs of Central PSUs Exempted from State Committee Vetting

Railways Invites Bids for 1.15 MW Rooftop Solar Projects in Varanasi Division

Tata Power Solar, Amplus and Roofsol: Top Rooftop Solar Installers in 2023

Daily News Wrap-Up: Solar Generation in India Rises 8.8% YoY to 32 BU in 2024

US Doubles Tariff on Chinese Solar Cells to 50%, Targets EVs and Batteries

Funding and M&A Roundup: Matrix Renewables Secures $322 Million Debt Funding

Project Finance Brief: BrightNight and Cordelio Secure $414 Million for Solar Project

Railways Issue Empanelment Tender for 2.33 MW Rooftop Solar Projects

FTC Solar Expects Revenue Rebound as Q1 2024 Losses Shrink


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/04/amazon_polly_65499.mp3?version=1713879083">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has clarified that power stations must always be available and ready to dispatch power according to the Tariff Policy 2016. Power generators can sell surplus power in the power market to best use unutilized generation capacity.</p>
<p>The clarification, sent to energy departments of all states and generating companies, comes amid concerns that some power generators are not offering surplus power in the power market, leading to unused capacity.</p>
<p>In October 2021, the Ministry of Power <a href="https://www.mercomindia.com/guidelines-optimum-utilization-power-generation" target="_blank" rel="noopener">issued</a> guidelines for operationalizing the optimum utilization of generating stations as per the requirements of the electricity grid. These guidelines aim to ensure that power generators can effectively utilize their capacity by selling surplus power in the market.</p>
<p>Section 9(5) of the Electricity (Late Payment Surcharge and Related Matters) Rules of 2022, later amended in 2024, empowers generators to sell surplus power within their declared generation capacity, even if distribution companies do not requisition it.</p>
<p>Despite these provisions, the Ministry of Power has received feedback from power utilities highlighting certain restrictions in existing agreements. For instance, Fuel Supply Agreements (FSAs) and agreements under SHAKTI B (ii) for independent power producers restrict linkage coal solely for fulfilling long-term power purchase agreement obligations with distribution companies.</p>
<p>In response to these concerns, the Ministry of Power clarified that generating companies, including those with long-term coal linkages under FSAs, can offer surplus power in the market.</p>
<p>This clarification, under the provisions of the Tariff Policy of 2016 and the Electricity (Late Payment Surcharge and Related Matters) Rules, aims to promote a more dynamic and responsive electricity market by utilizing power generation capacity efficiently.</p>
<p>By allowing power generators to sell surplus power, the government aims to minimize wastage of resources.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to stay informed about critical updates from the renewable industry.</p>


Ministry Says GENCOs Can Sell Surplus Power in the Market   

optimum-utilization

Get the most relevant India solar and clean energy news.

RECENT POSTS