MNRE Formalises Amendments to RTC RE Power Procurement Guidelines

MNRE has passed amendments to the guidelines for procurement of RTC RE power, complemented with power from any other source or storage.

The Ministry of New and Renewable Energy (MNRE), in a Gazetted notification, has passed a resolution with the amendments to the guidelines for tariff-based competitive bidding process for procurement of Round-The-Clock (RTC) power from grid-connected renewable energy (RE) power projects, complemented with power from any other source or storage.

The guidelines were initially issued in July 2020, for the procurement of RTC power from grid-connected RE projects, which were to be complemented with power from coal-based thermal power projects. The guidelines were later amended in November 2020, by the Ministry of Power.

The key amendment made to the guidelines was the formal introduction of “power from any other source or storage” into the guidelines to replace the unidirectional approach of bundling renewable energy with only thermal power.

The latest notification from the MNRE has further clarified that ‘renewable energy (RE) power’ wherever used in the guidelines, shall refer to power from solar power generating systems, wind power generating systems, or a combination thereof, with or without Energy Storage Systems (ESS), commissioned in pursuance of bidding process under these guidelines. 

“It is clarified that ESS charged using a source other than RE power would not qualify as RE power. Further, the ESS offered with a project under these guidelines should only be charged from RE power capacity. The same RE power shall either be considered for getting compensation in case of curtailment or for charging of ESS,” the MNRE notification stated.

The Power Ministry amendments in November 2020 had stated that under the key objective of the scheme for RTC renewable power i.e. the developments in the renewable energy sector and the necessity to address the issues of intermittency, limited hours of supply and low capacity utilisation of transmission infrastructure presents a case for – bundling, wherein firm power from any other source or storage is bundled with renewable energy and provided round-the-clock to the distribution company (Discom).

Furthermore, regarding the provision of Force Majeure, it has also been stated that the “PPA should contain provisions with regard to Force Majeure definitions, exclusions, applicability and available relief on account of force majeure as per the Industry Standards. The Generator shall intimate the procurer about the occurrence of force majeure within 15 days of the start of the force majeure and the procurer shall take a decision on his claim within 15 days of the receipt of the intimation.”

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Another key amendment in the earlier notification from the power ministry was the shift from composite tariff to weighted average levelised tariff as the bidding parameter. It has been decided that the bidding evaluation parameter shall be the weighted average levelised tariff per unit supply of RTC power. The Procurer shall invite bids wherein the bidder shall quote the first year weighted average levelised Tariff in Rs/kWh.