The Ministry of Power plans to amend its tariff-based competitive bidding process guidelines to procure power from grid-connected solar, wind, wind-solar hybrid projects, and firm and dispatchable renewable energy projects equipped with energy storage systems.

Stakeholders can submit their comments by November 9, 2024.

One of the amendments seeks to reduce the Power Purchase Agreement (PPA) period from 20 years to 15 years.

If the generator fails to maintain the minimum power availability for three consecutive years, it will be considered a default. The procurers may choose to lower the generator’s annual minimum availability requirement by paying a lump-sum compensation equivalent to 24 months (or the remaining period of the PPA, whichever is shorter) of the tariff for the supply obligations corresponding to the reduced availability.

Alternatively, they may treat this failure as a default event and terminate the PPA.

Additionally, the generator will be responsible for paying the procurers damages equivalent to 24 months (or the remaining PPA period, whichever is shorter) of the tariff for its contracted capacity at the stipulated availability level.

Automatic Weather Station

The developer must install and maintain a GPS-enabled Automatic Weather Station (AWS) that aligns with technical specifications and standards set by the relevant Central Government agency. Data availability from this AWS must meet requirements specified by the appropriate Load Dispatch Centre and other Central Government agencies, as outlined in the Indian Electricity Grid Code. It must comply with instructions from the Load Dispatch Centre as issued periodically.

The technical criteria will include provisions to ensure that the developer complies with cyber security regulations, directives, and guidelines issued by the authorities dealing with cyber security.

Insurance surety bonds, which would be paid unconditionally, similar to a bank guarantee or any other instrument approved in general financial rules as amended from time to time by the central government, will be established as a new instrument for earnest money deposit and performance bank guarantee.

The request for proposal may specify the substations in the interstate or intrastate transmission systems where the developers will connect their projects.

The performance bank guarantee will be returned to the generator within 45 days of the actual project supply commencement.

The intermediary procurer will approach the appropriate regulatory commission within 15 days of acceptance of the letter of award for tariff adoption.

The commission must approve any deviation from these proposed guidelines.

In August, the Ministry issued draft tariff-based competitive bidding guidelines for procuring stored energy from existing, under construction, or new pumped storage projects.

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