The Ministry of Power on 15th November 2022, has notified amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected RE Power Projects for utilisation under the scheme for flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with Renewable Energy and Storage power.
Through this amendment it has notified that the power purchase agreement (PPA) period influences the tariff by determining the period over which the investment is returned to the investor/RE Power Developer, the PPA period should normally be 25 (twenty-five) years from the Scheduled Commissioning Date (SCD).
However, where Renewable Energy is proposed to be bundled with Thermal/Hydro Plant in accordance with the policy of the Government, the PPA period may be in accordance with the balance life of the Thermal or Hydro Plant. The RE Generator will be free to operate their RE plant after the expiry of the PPA period and sell its power to other procurers through Long Term/Medium Term/Short Term PPAs or sell it in the Exchange or through bilateral agreement.
