Central Generating Stations Can Now Exit From PPA After Full Tenure And Resale The Power

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From now State DISCOMs or Central Generating Stations (e.g.NTPC) who have long term PPA with generating station (Firm in nature) can exit from the PPA or continue after completion of 25 years from project commissioning date. Ministry Of Power clarified the exist or continue clause after PPA tenure in a recent notification.


As per the notification, the central generating station who have completed 25 years of PPA tenure, are eligible to exit or continue with the state DISCOM given the first right to avail power with revised tariff rate will be of state DISCOM with whom the PPA was signed. The entire pool of allocated power which has completed PPA tenure, need to be relinquished. No partly power capacity relinquishment will be allowed. The Central Generating Station who have completed PPA tenure and want to exit from PPA clause, need to take permission from respective state commission (i.e.SERC) who will ensure the adequacy of power tied up with the DISCOM before exit from PPA to meet the demand of electricity for all the consumers under such DISCOM. For Central Generating Stations where power was allocated by central government to the state DISCOM, the relinquishment of power from the PPA clause will be treated as withdrawn and the same intimation should be given to Ministry Of Power by Central Generating Station or State.

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The Central Generating Station where PPA tenure is going to expire in near future and willing to exit, need to serve 6 months prior notice to state DISCOM. Power allocated to Central Generating Station which has been bundlef with solar can not be relinquished by the states.


All pending payment need to be settled with generating station by state DISCOM before final exit from the PPA.

In case of bulk power supply agreement (BPSA) state/ DISCOM can exit from the PPA after completion of total PPA tenure.

For Nuclear Power relinquishment after PPA tenure, Department Of Atomic Energy will decide the mechanism of exit process.

After exit from PPA, Centrak Generating Station can sell their power by the following routes:

a. Enter with other buyer with long term/ medium term (5 years)/ short term PPA clause through competitive bidding process.

b. Sell power through power exchange route i.e. Day-ahead market/ Real-Time market/ Term-Ahead market etc.

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c. Reallocation of power with willing buyers.

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