The Ministry of New and Renewable Energy (MNRE) has announced that the President has approved the proposed program to set up 2.5 GW of inter-state transmission system (ISTS)-connected wind and solar hybrid projects across the country on build own operate (BOO) basis.

The Solar Energy Corporation of India (SECI) has been appointed as the nodal agency for the implementation of this program.

The main objective of the program is to provide a framework for promotion of large grid connected wind-solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability. The program also aims at encouraging new technologies, methods and way-outs involving combined operation of wind and solar PV projects.

The developers will be selected through reverse bidding and SECI will enter 25-year power purchase agreements (PPAs) with the developers. To ensure there is no delay in the implementation of the program, SECI will execute power sale agreements (PSAs) with distribution companies (DISCOMs) and bulk consumers at pooled price of the total capacity in a region.

The MNRE has issued guidelines for transparent bidding process for implementation of 2.5 GW ISTS-connected wind solar hybrid program.

• Capacities will be awarded through competitive bidding.
• The lowest bidder will be the winner of the auction.
• Projects can be set up on locations of bidders’
• A single bidder must bid for a minimum 200 MW and can bid for a maximum of 500 MW.
• The minimum project capacity at a single project site must be 50 MW.
• Hybrid project developers must install energy storage to manage the power output from the hybrid projects.
• The developer will not be allowed to inject power more than the declared project capacity at the injection point.
• The PPAs will be executed within two months of issue of Letters of Award (LoAs).
• If conditions permit, developers can continue to operate their projects after the expiration of 25 years.
• Extension of PPA tenure beyond 25 years will be through an agreement.
• Developers will deposit a performance bank guarantee (PBG) of ₹2 million/MW.
• Project commissioning timeframe is 18 months from issue of LoA.
• For delay up to six months, PBG on per day basis proportionate to capacity not commissioned will be deducted.
• If project commissioning is delayed beyond six months, the tariff quoted will be reduced by 0.50 paise/kWh per day for the remaining capacity.
• A developer will be allowed a maximum of 27 months to commission the project.

The approval comes only days after the MNRE announced the new wind solar hybrid policy which aims at providing a framework for the expansion of grid-connected wind-solar PV hybrid systems in the country.