Ministry of Power Releases Guidelines For Uniform Renewable Tariff

Ministry of Power Releases Guidelines For Uniform Renewable Tariff

The Ministry of Power has now approved the procedure for implementing a Uniform Renewable Energy Tariff for the end power procurers, including discoms and open-access consumers. It will be applicable to renewable energy projects connected with the Inter-State Transmission Systems (ISTS). 

It comes after the Electricity (Amendment) Rules 2022 discussed the uniform renewable tariff (URET). As per these rules, the implementing agency (Grid-India) is liable to compute the URT every month for each category of central pool like solar power central pool and wind power central pool, among others. 

As per the latest guidelines issued by the ministry, there could be eight different central pools for different sets of renewable energy sources or their combinations like a central pool for solar power, a central pool for solar-wind hybrid, a central pool for firm and dispatchable renewable power and others. The norms said that the duration of the central poll will be five years. “All the capacity for which the Power Supply Agreement (PSA) is signed within this duration of five years will be part of the Central Pool,” the norms said. 

The URET norms said that the benefit of this will be for the end procurers, i.e the discoms and open-access consumers. “The Uniform Renewable Energy Tariff for Central Pool (URET) will be applicable only to power procured by the End Procurer and will not in any manner have any implication on the renewable energy tariff discovered under the respective tariff-based competitive bidding process and payable to renewable energy generators by the Intermediary Procurer as per the PPA,” it said. The ministry order said that the bilateral scheduling from the renewable energy generators should be done directly to the end procurers as per the power supply agreement. 

The norms said that the intermediary procurer would raise the bill on a monthly basis as per the uniform renewable energy tariff computed by the implementing agency for the relevant month and in accordance with the terms of the respective Power Sale Agreement.

The Ministry of Power, meanwhile, mandated the implementing agency to compute the URET on a monthly basis based on information submitted by the Intermediary Procurer. “Implementing Agency will issue the monthly account statements for adjustment of any surplus or deficit tariff among the intermediary procurers, based on information submitted by the Intermediary Procurer.” 

The latest norms said that after data verification by the Regional Load Despatch Centre (RLDC), it will be aggregated at each sour-wise central pool. The implementing agency will compute the tariff for each source-wise central pool within three days. The norms said the implementing agency will publish the URET for each source-wise central pool on its website within three working days of receiving the verified date from the RLDC.

“The Tariff for the month shall be calculated by aggregating, for each source of RE, all the amount to be paid for the energy supplied as per the tariff (including trading margin) in the PSA and divided by the total scheduled energy of the plant/scheme qualified under this scheme,” the order said. 

The order also talked about the legal obligations of the parties. “All the contractual obligations between power generators and intermediary procurer and intermediary procurer and end procurer, including but not limited to liquidated damages, penalties, extension charges, and dispute resolutions, will be governed by respective bidding documents including Power Purchase Agreements, Power Sale Agreements and will have no bearing on uniform renewable energy tariff,” it said.