- The Ministry of Power amended the guidelines for the tariff-based competitive bidding process for procurement of round-the-clock (RTC) power from renewable energy (RE) sources, complemented with power from any other power sources.
Guidelines for a competitive bidding process for procurement of round the clock power from mixed sources
- The guidelines were released in July 2020 to facilitate the bundling of renewable energy with other non-renewable sources of energy to address the intermittent nature of renewable energy.
Key features of the amendments
- Threshold for sharing the amount realised from non-scheduled power
- The power generators and procurers are required to follow a forecasting and scheduling process for sale of power.
- If the power is not procured by the procurer as per the schedule, the procurer must compensate the generators.
- Also, the generators may sell the non-scheduled power to a third-party and adjust the amount realised against the compensation.
- The power generators are required to share a certain part of the amount realised, from the third-party sale of non-scheduled powers (powers offered but not scheduled), with the procurer.
- For renewable power, the amendments increase the threshold of the shareable amount from 90% of the net realisation to 95% of the net realisation.For non-renewable power, the threshold has been increased from 50% of the net realisation (excluding variable charges) to 95% of the net realisation (excluding variable charges).
- Period for decision on force majeure
- The amendments reduce the decision-making period of the procurer from 30 days to 15 days to decide on the force majeure claims of power generators.
- Force majeure claims refer to the claims for relief (such as excuse from performance obligations) in wake of uncontrollable events such as earthquakes, and floods.