MNRE Issues Guidelines for Procurement of Wind-Solar Hybrid Power

MNRE has issued the guidelines for the procurement of power/ electricity from wind-solar hybrid power projects through a transparent bidding process.

The Ministry of New and Renewable Energy (MNRE) in its latest notification has issued the guidelines for the procurement of power/ electricity from wind-solar hybrid power projects through a transparent bidding process.

Addressed to the Solar Energy Corporation of India (SECI), the nodal agency for implementation of renewable energy projects in the country, the ministry mentioned that the Government has issued Wind-Solar Hybrid Policy on May 14, 2018, which was with the objective to provide a framework for the promotion of large grid-connected wind-solar PV hybrid system for optimal and efficient utilisation of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability.

Following this, SECI had sanctioned a schemer for setting-up of 2500 MW wind-solar hybrid power projects in the same month, for the procurement of hybrid power at a tariff discovered through a transparent process. Subsequently, wind-solar hybrid projects of 1440 MW capacity have been awarded by SECI to date, under the above scheme.

Now, the ministry, as a step forward and a step toward ensuring the availability of renewable energy to Discoms at competitive rates, has issued the guidelines for the procurement of wind-solar hybrid power through a tariff-based competitive bidding process.

The objective of the guidelines is to provide a framework for the procurement of electricity from ISTS grid-connected hybrid power projects.

The individual minimum size of the project allowed is 50 MW at one site and a single bidder cannot bid for less than 50 MW. Further, the rated power capacity of one resource (wind or solar) shall be at least 33 percent of the total contracted capacity.

The arrangement for implementation shall be as under:

a. SECI will be the nodal agency for implementation of these Guidelines.

b. The selection of the Hybrid Power Projects will be through a transparent e-bidding process followed by an e-reverse auction.

c. The solar and wind projects may be located at the same or different locations.

d. Storage may be added to the Hybrid power project

e. The power procured from the project may be used for fulfillment of solar RPO and non-solar RPO in the proportion of rated capacity of solar and wind power in the plant respectively.

f. Unless explicitly specified in these Guidelines, the provisions of these Guidelines shall be binding on the Procurer and SECI.

g. The Intermediary Procurer, i.e. SECI, shall enter into a Power Purchase Agreement (PPA) with the Hybrid Power Generator(s) and also enter into a Power Sale Agreement (PSA) with the Discoms/ consumers. The PSA shall contain the relevant provisions of the PPA on a back to back basis. In case SECI is not able to enter into a PSA to sell power from projects awarded to distribution licensee(s) or bulk consumers within six months from the issue of letter of award, those projects would be cancelled.

h. The duration of the PPA period should not be less than 25 years from the Scheduled Commissioning Date (SCD). SECI may charge a trading margin of seven paise/kWh from the Buying entity/ Procurer for purchase and sale of the hybrid power.

j. The bidders may avail fiscal and financial incentives available for such projects as per prevailing conditions and Rules, and the same may be disclosed by the SECI in the Request for Selection (RfS) document.

For more details and complete guidelines click here.