The Central Government has announced amendments to the guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects and Wind-Solar Hybrid Projects. These amendments were published through notifications dated February 12, 2025.
The government has issued amendments to the following guidelines:
- Guidelines for Tariff Based Competitive Bidding Process for Procurement Power from Grid Connected Wind Power Projects and
- Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Projects.
These guidelines aim to streamline the procurement process and enhance the integration of wind energy and wind-solar hybrid energy into the national grid.
Common Conditions of the Guidelines
Location Specific Bids
Procurers can now specify substations in the Inter-State Transmission System (ISTS) or Intra-State Transmission System (InSTS) where developers must connect their wind power projects or wind-solar hybrid power projects, as the case may be. This enables targeted grid integration.
Change in Law
Change in Law provisions will align with the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021, and subsequent amendments. “Change in Law” will refer to events occurring from seven days prior to the last day of Bid Submission.
Capacity Utilization Factor (CUF) Default
The guidelines have been modified regarding CUF defaults. If a generator fails to maintain the declared minimum CUF for two consecutive years (excluding the first contract year), their yearly minimum CUF obligation will be reduced to the average of the actual CUF for those two years.
The generator will be obligated to pay lump-sum damages equivalent to 24 months, or the remaining PPA period, of the tariff for the reduction in yearly minimum CUF obligation. Failure to pay the lump sum damages can lead to PPA termination.
Technical Criteria
Technical Criteria
Procurers may specify technical criteria to ensure proper project implementation and adequate competition. In case of wind power projects, the cut-off date for meeting the technical criteria should generally be kept as the end date of the financial year that is previous to the financial year in which the bid is being floated.
In both types of projects, developers must install and maintain GPS-enabled Automatic Weather Stations (AWS) as per specified standards.
Additionally, compliance with applicable cybersecurity regulations is mandatory.
PPA and PSA Signing
PPA and PSA signing should be completed within 30 days of the LoA issuance, with a potential extension up to 12 months.
Tariff Adoption
Distribution licensees or Intermediary Procurers (in case of wind-solar hybrid projects) or distribution licensees (in case of wind power projects) must approach the Appropriate Commission for tariff adoption within 30 days of tariff discovery.
Earnest Money Deposit (EMD) and Performance Bank Guarantee (PBG)
Insurance Surety Bonds and other instruments approved by the General Financial Rules are now acceptable alternatives to traditional Bank Guarantees for EMD and PBG.
PBG can be encashed to recover any damages/dues of the generator. Any damages/dues recovered by the Intermediary Procurer by encashing the PBG, will be credited to the Payment Security Fund. PBG corresponding to partial capacity of the project should be released within 45 days of the actual commencement of supply date.
Deviation Approvals
Any deviations from the guidelines must be approved by the Appropriate Commission before the initiation of the bidding process. If deviations were approved by the Appropriate Government prior to these amendments, fresh approval is not required.
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