Ministry of Power Modifies Rules for Purchasing RTC Renewable Energy

The parameters for the tariff-based competitive bidding process to purchase round-the-clock (RTC) power from grid-connected renewable energy projects have been amended, according to the Ministry of Power (MoP). Under Section 63 of the Electricity Act of 2003, these regulations were first released in July 2020. The current amendment permits producers of renewable energy to combine storage to meet the minimum annual availability requirement of 90% and maintain a minimum of 90% monthly availability for at least eleven months out of the year. However, at least 51% of the total energy used annually must come from renewable sources.

The power purchase agreement (PPA) term is 25 years from the later of the scheduled commissioning date or the commissioning date for the entire project’s capacity. The PPA could also be set for a longer time frame, like 35 years. If the agreements with the organisations responsible for owning the land and infrastructure, the pertinent transmission utilities, and the system operators permit, the generators are free to continue operating their projects after the PPA time has ended.

Utilizing the weighted average levelized tariff per unit supply of RTC electricity, the bidding procedure must be analysed. A fixed renewable and non-renewable component, a variable non-renewable power scalable for fuel, and a variable non-renewable power scalable for transportation must all be included in the quoted rate. The fixed portions of the renewable and non-renewable power rates will be quoted throughout each year of the PPA period. Utilizing the escalation indices provided by the Central Electricity Regulatory Commission, the levelized tariff must be determined.

With a revolving letter of credit in an amount equal to at least one month’s typical billing for the projects under consideration, the end procurer must provide payment security to the intermediary procurer. The tender must include provisions for the payment of an additional risk premium of Rs 0.10 per kWh if the end procurer is not qualified to be protected under the state government guarantee.