Nodal agency: Ministry of Power

Policy brief

Ministry of Power has issued draft rules to set up a central pool for sale of renewable power to DISCOMs at an average tariff and propose methodology to determine fuel and power purchase adjustment surcharge.

Key highlights

Applicability All ISTS renewable power projects (with or without storage) and DISCOMs
Central pool for renewable power Central pool for each renewable power technology would be set up, for a period of five years, for sale of power to DISCOMs.
Uniform renewable power tariff Average monthly tariff would be determined based on PPA tariff of individual projects and actual power supplied in a month. 
DISCOMs would be billed at average monthly tariff and a trading margin approved by relevant regulator and on basis of actual power supplied. 
Developers would be paid as per PPA tariffs. 
Fuel and power purchase adjustment surcharge (FPPAS) FPPAS would be determined every month based on formula approved by state regulator. It would be billed automatically to consumers. 
FPPAS must be determined and charged to consumers within two months of actual variation or DISCOM would forfeit right to charge FPPAS for that month.
Energy storage projects Energy storage projects may be developed with a power generation project or on standalone basis.
Operation of standalone energy storage system would be considered a delicensed activity. 
Energy storage projects may be developed/ owned/ leased/ operated by a power producer/ DISCOM/ TRANSCO/ system operator.
Other highlights Cross subsidy surcharge would not exceed 20% of average cost of supply.