Govt Releases New Bidding Norms For Hybrid Projects

The Ministry of Power has now developed its latest bidding guidelines for solar and wind hybrid projects. It will apply to all intra-state hybrid projects with a capacity of 10 MW and more and to all those with 50 MW or more capacity.

The norms said that the rated power capacity of one resource (wind or solar) in such projects should be at least 33% of the total contracted capacity. The norms allow the setting up of solar and wind projects at the same location or in different locations. 

The ministry said that these new bidding norms could promote competitive power procurement through hybrid sources and compliance with Renewable Purchase Agreements (RPO) norms. It also said that all such projects need to abide by these rules. In case of deviation from these, the procurers need to take permission from the government.

The new norms said that all the tender documents must specify the project milestones like land acquisition, connectivity, and others. It also puts the onus on all clearances, permits, licenses, and arrangements of land and connectivity to the grid and access to the hybrid power generators.

It also asked the issuers of the tenders to invite the bids in Megawatt (MW) terms. They were also asked to identify the maximum and minimum power capacity that could be allocated to one entity. The bidders, meanwhile, have been asked to submit their quotes for the tenders on Rs/Kwh basis for the PPA period.

Norms on PPA and CUF

The new norms also said that ideally, the PPA should be signed for 20 years but could be extended up to 25 years. It also asked the procurer to specify the Capacity Utilisation Factor (CUF) range for these plants. It batted for levying a penalty for the shortfall in CUF compliance. “The amount of such penalty will be equal to one and a half times of the PPA tariff for the shortfall in energy terms, in accordance with the terms of the PPA,” the norms read. 

It also allowed the generators to sell their surplus power. “In case of availability of energy more than the maximum annual CUF specified, HPG will be free to sell it to any other entity provided first right of refusal will vest with the procurer (s). The procurer (s) shall provide refusal within 15 days from the receipts of the request, beyond which it would be considered as deemed refusal,” the document read.

The new bidding norms of the ministry also specified the formula to be adopted for compensation for the producer of hybrid energy in case there is no offtake or partial offtake due to grid unavailability or other issues. In the last few months, the ministry has released bidding norms for solar and wind projects with similar guidelines.