Ministry of Power issued Amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The Clock (RTC) Power from Grid Connected Renewable Energy Power Projects, complemented with Power from any other source or storage.
For the procurement of RTC power from grid-connected RE projects, the guidelines were issued in July 2020 and later amended in November 2020. It got further amended in February 2021 and then in February 2022.
The Key amendments in the earlier notifications from the power ministry was the shift from composite tariff to weighted average levelised tariff as the bidding parameter. It has been decided that the bidding evaluation parameter shall be the weighted average levelised tariff per unit supply of RTC power. The Procurer shall invite bids wherein the bidder shall quote the first year weighted average levelised Tariff in Rs/kWh. Other key amendment was the formal introduction of “power from any other source or storage” into the guidelines to replace the unidirectional approach of bundling renewable energy with only thermal power. In the February 2022 amendment, matching of L1 tariff clause was taken away from the guideline.
The present amendments talks about the following:
- The Generator will supply despatchable RE Power, complemented with power coming from other sources, in Round-The–Clock fashion, maintaining at minimum 90% availability annually.
- 90% availability on a monthly base for at least 11 months in a year.
- During peak hours, the generator shall be available at minimum 90%. The peak hours shall be four hours of 24 hours, as determined by RLDCs in accordance with the applicable CERC regulation.
- The Generator shall be liable to pay to the Procurer, penalty for any shortfall in power availability. Penalty for not meeting the stipulated availability shall be equal to the fixed tariff for the number of units not supplied.
- Selection of bidders will be basis of lowest weighted average tariff in bucket filling method. While the L1 matching criteria is taken off, allocation will be made only to bidders who fall within 2 to 3% of the L1 tariff.
- The PPA period shall be for a period of 25 (twenty-five) years from the date of the Scheduled Commissioning Date (SCD) or the date of commissioning of full project capacity, whichever is later.
- Payment Security Amended to Revolving LC and State government guarantee. In places where state guarantee cant be provided, there will be a additional risk premium of INR 0.10/kWh by end procurer to intermediary procurer and credited to payment security fund.
- Change in Law to be as per Electricity Rules 2021 and further amendments to the same
- In case a particular component of the project is commissioned early, it can be allowed to commission outside the ambit of the PPA. Such power can be sold with first refusal right to end procurer followed by intermediary procurer. In case they agree to buy such power, the same will be purchased at 50% of PPA tariff.
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