The Ministry of Power on 22nd October 2021 has published the Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021. The rules provide that electricity generated from a must-run power plant may be curtailed or regulated only in the event of any technical constraint in the electricity grid or for reasons of security of the electricity grid.
A wind, solar, wind-solar hybrid or hydropower plant (in case of excess water leading to spillage) or a power plant from any other sources, as may be notified by the Appropriate Government, which has entered into an agreement to sell the electricity to any person, shall be treated as a must-run power plant.
In the event of a curtailment of supply from a must-run power plant, compensation shall be payable by the procurer to the must-run power plant at the rates specified in the agreement for purchase or supply of electricity.
The intermediary procurer, an agency nominated by the Central Government or State Government, may procure electricity through a transparent process of bidding in accordance with the guidelines issued by the Central Government under section 63 of the Act for sale to one or more distribution licensees.
Further, the intermediary procurer shall be deemed to be a trader for the purposes of the Act, buying electricity from the must-run power plant and selling the same to one or more distribution licensees and the intermediary procurer, from the sale of electricity under these rules, shall be allowed to retain only the trading margin as specified in the agreements or the regulations or as may be determined by the Appropriate Commission.
