Nodal agency: Ministry of Power

Policy brief

The Ministry of Power has issued guidelines for procurement of round-the-clock power from a mix of renewable and other sources including storage.

Key highlights

Power supply Minimum share of renewable power should be 51%. Renewable energy technologies include solar, wind and solar-wind hybrid. Projects may also install storage capacity which may only be charged with solar, wind or solar-wind hybrid projects.
Only one non-RE source is allowed to complement RE power supply. Non-RE power plants operational or under-construction at time of bidding are eligible to participate. 
Bidders must ensure at least 90% CUF annually and on monthly basis in at least 11 months and during specified peak hours. Failure to meet CUF would result in penalty at applicable tariff for shortfall in power. Failure to meet RE share requirement would result in penalty equivalent to 400% of applicable tariff for shortfall in renewable power. 
Renewable and non-renewable power supply can be located in same or different Regional Load Dispatch Centre (RLDC) areas.
Tariff Bidders are required to submit four-part tariff bids - tariff for renewable power, fixed charges and variable charges for fuel and transportation costs for non-renewable power.
Levellised tariff will be determined based on CERC’s escalation indices for respective fuel types.
Capacity will be allocated on the basis of weighted average levellised tariff through bucket filling method to developers submitting bids within a range of 2-3% of L1 bid. 
Deadlines Financial closure: 
Projects smaller than 1 GW: 18 months from PPA execution date
Projects over 1 GW: 24 months from PPA execution date
Project commissioning: 
Projects smaller than 1 GW: 24 months from PPA execution date
Projects over 1 GW: 30 months from PPA execution date
Early commissioning: Power from solar/ wind projects may be procured at 50% of PPA tariff.
Others Developers may sell unscheduled power to any third-party or at power exchanges on day-ahead basis without any NOC from procurers.
Compensation for reduced offtake is limited to difference between declared capacity and power scheduled by offtaker. 
PPA tenure shall be at least 25 years.