MNRE Issues Guidelines For Tariff Bidding Process of 2500 MW Blended Wind Power Projects

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The Ministry of New and Renewable Energy (MNRE) has recently issued Guidelines for the tariff-based competitive bidding process for Scheme procurement of blended wind power from 2500 MW ISTS connected projects.

The government has issued two sets of standard bidding guidelines for tariff-based competitive bidding for wind and solar power projects respectively. It has also sanctioned a Scheme of 2500 MW of wind-solar hybrid power projects. 

Ministry said that As a step towards ensuring the availability of renewable energy to DISCOMs at competitive rates and also developing wind power sector which is primarily domestic, they decide to announce a scheme for Tariff Based Competitive Bidding Process for procurement of REpower from 2500 MW ISTS Connected Blended Wind Power Projects’ for procurement of power at a tariff discovered through a transparent process of bidding through Solar Energy Corporation of India (SECI).

The objective of the Scheme is to provide a framework for the procurement of electricity from 2500 MW ISTS Grid Connected Wind Power Projects with up to 20% blending with Solar PV Power through a transparent process of bidding. 

The total capacity to be awarded under the scheme is 2500 MW. The individual minimum size of the project allowed under the scheme is 50 MW at one site and a single bidder cannot bid for less than 50 MW. Further, the rated power capacity of wind power projects must be at least 80% of the total contracted capacity. 

SECI has been appointed as the nodal agency for the implementation of the Scheme. The selection of the Blended Wind Power Projects under the Scheme will be through a transparent e-bidding process followed by an e-reverse auction. Under this scheme, the solar and wind projects can be located at the same or different nearby locations. However, it has been highlighted that the individual wind/solar component constituting the Blended Wind Power Project, will inject power in the grid through a single point. 

The blended wind power project developer would be free to install wind turbines and DC solar PV capacity as per its design of required output including its requirement of auxiliary consumption, it will not be allowed to sell any excess power to any other entity other than SECI unless refused by SECI. 

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

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

The Ministry instructed SECI to enter into a Power Purchase Agreement (PPA) with the Blended Wind Power Generator(s) and also enter into a Power Sale Agreement (PSA) with the distribution licensee(s) or bulk consumers. In case SECI is not able to enter into a PSA to sell power from projects within six months from the issue of letter of award, those projects would be deemed to be canceled.The duration of the PPA period will not be less than 25 years from the Scheduled Commissioning Date (SCD) or from the date of full commissioning of the projects, whichever is earlier.

The Intermediary Procurer ie.SECI will charge a trading margin of 7p/ kWh from the Buying entity / Procurer for purchase and sale of the blended power. 

The State Nodal Agencies appointed by respective State Governments will provide the necessary support to facilitate the required approvals and sanctions in a time-bound manner to achieve commissioning of the projects within the scheduled timeline. 

If any difficulty arises in giving effect to any provision of this Scheme including Guidelines or interpretation modification is required, the Ministry of New & Renewable Energy after approval of Minister In-Charge will issue the same.

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