The Ministry of Power has declared that the central pools for solar power and solar-wind hybrid power have begun operations from February 15, 2024. Any interstate transmission system (ISTS) connected solar and solar-wind hybrid capacity bid after this date will fall under their corresponding pools.

The operation of these pools will follow a first-in, first-out approach. This means that projects receiving their letter of award first will be included and sold first within their respective pools.

The Ministry has also proposed an amendment to shorten the duration of each central pool from five to three years. Stakeholders have until February 29, 2024, to provide feedback on this proposed amendment.

In October, the Grid Controller of India issued the procedure to implement the uniform renewable energy tariff for the central pool of projects.

According to the procedure, each renewable energy source has been assigned an individual category of central pool:

• Solar power central pool
• Wind power central pool
• Hydropower central pool
• Solar-wind hybrid central pool
• Round-the-clock power (solar wind hybrid + storage) central pool
• Peaking power (solar wind hybrid + storage) central pool
• Firm and dispatchable renewable power
• Any other new pool as specified by the Central Government

There may be more than one category of central pool for solar-wind hybrid central pool, round-the-clock power (solar wind hybrid + storage) central pool, and peaking power (solar wind hybrid + storage) central pool depending upon the technology, and generation mix,  as decided by the government.

The procedure was issued as a follow-up to the announcement in August last year when the Ministry of Power proposed establishing central pools of ISTS-connected renewable energy sources such as solar, wind, hybrid, and storage. Intermediary companies like NTPC, NHPC, SJVN, and SECI could use these pools to purchase power for distribution and retail supply to multiple states at a uniform tariff for each pool.

The Ministry emphasized that adopting a uniform renewable energy tariff incentivizes distribution companies (DISCOM) to engage in power purchase agreements (PPAs) and stimulate growth in the renewable energy sector.

A uniform tariff is expected to alleviate issues arising from DISCOMs delaying PPAs or starting renegotiations due to tariff discrepancies compared to previous PPAs.

Subscribe to our real-time Regulatory Updates to ensure you never miss any critical updates from the renewable energy industry.