MoP To Introduce Uniform Renewable Tariff For Central Pool Of Projects


In order to implement the unvarying renewable energy tariff for the central pool of projects connected to the interstate transmission system (ISTS), the Ministry of Power (MoP) modified the Electricity Rules.


By dividing the total amount due under the power supply agreement for a particular month by the total amount of electricity delivered, the uniform renewable energy tariff will be calculated.


Due to observed tariffs being higher or lower than prior PPAs, DISCOMs sometimes postpone joining PPAs or require developers to renegotiate pricing.


Thus, after the introduction of a consistent renewable energy tariff, Distribution companies (DISCOM) are anticipated to sign power purchase agreements (PPAs) and further the growth of the renewable energy industry.


Further, to improve the capacity of transmission corridors in order to execute the central pooling mechanism, transmission infrastructure must be upgraded. This will allow for the construction of more ISTS-connected projects of renewable energy.

Additionally, the wind industry, which is slowing down as a result of low tariffs uncovered in reverse auctions, will also benefit from the uniform tariff’s catalytic effects.

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Only power purchased by end users will be subject to uniform pricing; the renewable energy tariff established via the tariff-based competitive bidding procedure and paid to generators in accordance with their PPAs will remain unaffected.

The tariff set by the competitive bidding process used by intermediary procurers can be adopted by a suitable commission.

If an application has been made by the intermediate procurer or end procurer, this adopted tariff for one category of renewable energy power will be placed in the appropriate category of the central pool.

The applicable bidding documents will govern all contractual obligations such as liquidated damages, extension fees, penalties, and dispute resolutions between power generators, intermediary procurers, and end procurers. These obligations will not have an impact on the uniform renewable energy tariff.

The pooled tariff will be updated to reflect any changes in the law and will be in conformity with the pertinent bidding papers.

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End procurers must acquire permission from the relevant State Commission before purchasing power from a pool at the uniform renewable energy tariff set by these regulations, except open access customers.

Intermediate procurers, like the Solar Energy Corporation of India (SECI), would be permitted to sell any unsold electricity to open-access users for a price at least equivalent to the standard renewable energy tariff. 

According to the terms of their power supply agreements, end procurers and renewable energy developers will directly engage in bilateral scheduling. The appropriate commission’s rules will be followed for variance settlements, accounting, and scheduling.

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