Power ministry proposes amendments to tariff-based competitive bidding for solar, wind and hybrid renewable energy projects

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India’s ministry of power has released draft amendments to guidelines for tariff-based competitive bidding process for procurement of power from grid-connected solar, wind-solar hybrid and renewable energy projects with energy storage systems. The ministry has sought comments/feedback from the stakeholders.

As per the new guidelines,

  1. The tender document may specify the sub-station(s) in inter-state transmission system (ISTS)/intra-state transmission system (InSTS), where the developers will connect the RE power project.
  2. The PPA period shall be for a period of 15 years from the scheduled commencement-of-supply date (SCSD), as against 25 years at present.
  3. If the generator fails to maintain a minimum availability continuously for three consecutive years, the generator shall be in default and the procurers will have the option to either reduce the generator’s yearly minimum availability upon payment of lump-sum damages equivalent to 24 months or balance PPA period, whichever is less, of tariff for the supply obligation corresponding to reduction in availability or treat such failure of the generator as an event of default and terminate the PPA.
  4. The developer shall install and maintain GPS enabled automatic weather station (AWS) as per the technical specifications and standards specified by relevant Central Government agency.
  5. The technical criteria shall include provisions to ensure that the developer complies with applicable cyber security regulations, directives, and guidelines issued by the Central Government Authorities dealing with cyber security.
  6. A new instrument for establishment of earnest money deposit/performance bank guarantee is added: Insurance surety bonds, which would be paid unconditionally similar to a bank guarantee or any other instrument approved in general financial rules as amended from time to time by the central government.

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