MNRE Issue Framework For Competitive Bidding In Procurement Of Electricity From Grid-Connected Wind Solar Hybrid Projects

Representational image. Credit: Canva

In a significant move towards bolstering the renewable energy sector, the Ministry of New and Renewable Energy (MNRE) has introduced comprehensive guidelines under Section 63 of the Electricity Act, 2003. These guidelines pertain to the long-term procurement of electricity through a competitive bidding process for Wind-Solar Hybrid Power Projects. The provisions aim to streamline the process and establish a framework for the procurement of clean energy, ensuring a sustainable and diverse energy mix.


Under the newly issued guidelines, the procurement process is intended for Wind-Solar Hybrid Power Projects with a bid capacity of 10 MW and above for projects connected to the intra-state transmission system. For projects connected to the inter-state transmission system, the bid capacity requirement is set at 50 MW and above. A crucial condition outlined in the guidelines is that the rated power capacity of one resource, either wind or solar, must account for at least 33% of the total contracted capacity. This stipulation emphasizes the balanced integration of multiple clean energy sources.

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Furthermore, these guidelines offer flexibility in the project location. The solar and wind components of a hybrid project can be situated at the same location or different locations, allowing for optimal utilization of available resources.


The MNRE guidelines also address the integration of energy storage solutions within hybrid power projects. Storage solutions can play a pivotal role in three key aspects: reducing the variability of output power from wind-solar hybrid projects and enhancing energy output. By installing additional capacity of wind and solar power in a hybrid project, higher energy output can be achieved for a given capacity and ensure the availability of firm power for a particular period. This innovative approach not only enhances efficiency but also contributes to grid stability.

The guidelines establish the binding nature of their provisions on the Procurer, Authorized Representative, and Intermediary Procurer, and also outline the process to be followed in the event of any deviation proposed from the guidelines. This provides a structured mechanism for ensuring compliance while accommodating specific project requirements.

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One of the noteworthy aspects of the guidelines is the recognition of Renewable Purchase Obligations (RPO). The power procured from the hybrid power project can be used to fulfill the RPO in proportion to the rated capacity of solar and wind power in the plant. This aligns with the broader national goals of increasing renewable energy consumption and reducing reliance on fossil fuels.

With the issuance of these guidelines, the earlier guidelines related to wind projects, as notified under No. 238/78/2017-Wind dated 14.10.2020, will no longer be applicable for bids issued after the notification of the new guidelines. However, projects that were awarded, under implementation, or commissioned under the previous bidding guidelines will continue to be governed by those regulations.

In cases where ongoing bids have submission deadlines after the notification of the new guidelines, the bid documents will be appropriately modified to align with the latest provisions, ensuring a seamless transition to the new framework.

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The MNRE’s comprehensive guidelines for Hybrid Power Projects underscore India’s commitment to expanding its renewable energy capacity and diversifying its energy mix. By encouraging the integration of different clean energy sources and energy storage solutions, these guidelines pave the way for a more resilient and sustainable energy future. As the nation takes steps towards achieving its renewable energy targets, these guidelines provide a clear roadmap for developers, procurers, and stakeholders, fostering innovation and progress in the renewable energy sector.

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