Renewable Developers Directed to Give 15-Day Notice for Early Commissioning

Generators can initiate power supply from specific components outside the PPA

thumbnail

The Ministry of Power has amended the tariff-based competitive bidding process guidelines for power procurement from renewable sources, directing developers to give a 15-day notice to end and intermediary procurers for advance commissioning of power supply.

The amendments were made to the recently issued bidding guidelines for grid-connected wind power projects, wind solar hybrid projects, solar PV power projects, and renewable energy power projects with energy storage systems.

Acceptance by both end procurer and intermediary procurer is crucial within the specified fifteen-day period.

If acceptance is not received within the stipulated period, developers have the option to sell the unaccepted power through power exchanges or bilateral arrangements.

In cases where both end procurer and intermediary procurer give their acceptance, priority will be given to the end procurer in availing the power.

The tariff payable by the end procurer and intermediary procurer is specified in each case:

  • In wind power projects and wind solar hybrid projects, the tariff equals the power purchase agreement (PPA) tariff.
  • In solar projects, the tariff payable equals the PPA tariff.
  • In renewable energy projects with energy storage systems, the tariff payable is up to 50% of the PPA tariff.

For wind and solar power projects, the power generator is allowed to commence power supply from full or part capacity even before the scheduled commercial operation date, contingent on the availability of transmission connectivity and long-term access/general network access.

Similarly, for wind-solar hybrid projects, the amendment addresses situations where one or more components of a project (wind or solar) are ready for power injection into the grid while others are not; they would be permitted to commence power supply from the ready component outside the PPA ambit.

Lastly, for renewable energy power projects with energy storage systems, the amendment allows the generator to commence power supply from a single component outside the PPA if others are not ready.

By allowing early commencement of power supply under specified conditions, the amendments are expected to contribute significantly to the growth and sustainability of the renewable energy sector in the country.

RELATED POSTS