Guidelines for Round-the-Clock Procurement of Renewable Power with Thermal Power

The Ministry of Power (MoP) released guidelines for the procurement of round-the-clock (RTC) power from renewable projects complemented with power from thermal power projects.

Highlights of Renewable Power and Thermal Power Procurement on RTC Basis

  1. Renewable energy generator should supply power on RTC basis by combining RE Power and Thermal Power.
  2. Generator Must supply 85% of contracted energy during peak hours.
  3. The generator can avail storage option to maintain a minimum annual availability of 85 percent.
  4. RE generation must meet at least 51% on Annual Basis and remaining power may supplied through Thermal power.
  5. the minimum amount of power should be offered is 250 MW. For this , bidder can tie-up with more than one thermal generator with capacities of lesser than 250 MW.
  6. Minimum PPA duration is 25 years from the date of the scheduled commencement-of-supply date (SCSD)
  7. RE Generator are eligible to clime their RECs(Renewable energy certificates).

According to the Ministry of Power(MOP) guideline Generator should to supply RE Power Complemented With Thermal Power to meet RTC , Seller must meet 85% of Peak demand and . Annual supplied quantum must minimum included 51% of Renewable power.

Annual Minimum Supply Granite is fixed as 85% of contacted Energy to meet Minimum supply generator may avail energy storage option.

Quoted Tariff from should be single composite for Renewable energy Generator complemented with thermal energy.

As per MOP guidelines minimum tendering quantum should be 250 MW. For that RE generator shall tie-up with either 1 generator or more than one thermal generator if in case thermal project capacity is less than 250 MW.

The minimum number of qualified bidders restricted to two Procurers . If the number of qualified bidders are less than two, even after three attempts of bidding and the procurer still wants to continue with the bidding process. it can be done with the consent of the appropriate commission.

The power purchase agreement (PPA) Duration is minimum 25 years from the date of the scheduled commencement-of-supply date (SCSD). PPA duration also be extended up to 35 years but it should be must have to mention up front in the agreement .

15 Minutes Block RE generation Must not exceed the contracted capacity . However, Combined generation of renewable energy Generation complementing with thermal Generation can be higher than the contracted capacity.

Transmission charges and Losses for Power transmitting through interstate transmission system (ISTS) applicable as per existing regulations also waiver of any charges for renewable power. will also be applicable as per the existing regulations

Penalty clause for short fall for renewable energy generation of minimum 51% is calculated as 25% of the maximum indexed composite tariff payable during the year for each unit of the shortfall.

Deviation Settlement Mechanism (DSM) will be applicable as per the prevailing regulations.

Renewable energy generator can avail REC certificates . And the distribution of RPO between solar and non-solar will be based on the principles adopted in the case of hybrid projects.

Challenges for Power Procurers

  1. if Procurer wants to install Hybrid Model ,on an average PLF for wind Plant is 28% and solar PLF is 18.7% . RE generator need to decide for installation capacity for either with 18.7 % PLF or 28%. But the total RE generation may not exceed contracted energy.
  2. Wind generation Season is only for 5 months and PLF is expected to be higher than an normal . In this case forecasting and scheduling of RE generation may default to restrict generation up to contracted energy.
  3. MOP given as option to avail storage facility but still battery installation costs are higher than competitive bidding prices. It should be questioned how bidders go for lower prices with storage option.

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