Energy Storage Systems Must Be Charged Using Renewables: Round-the-Clock Power Bid

For claiming compensation against curtailment, the generator must sell the power in a power exchange as a price taker


The Ministry of Power (MoP) has amended the guidelines for the tariff-based competitive bidding process for the procurement of round-the-clock (RTC) power from grid-connected renewable power projects, complemented with power from any other source.

As per the new amendments, the term renewable energy power will refer to power from solar power generating systems, wind power generating systems, or a combination thereof, with or without energy storage systems (ESS), commissioned in pursuance of the bidding process.

Further, the ESS offered with a project must only be charged from renewable energy sources. The same renewable energy will either be considered for getting compensation in curtailment or charging ESS. The new amendments clarify that ESS charged using any source other than renewable energy will not qualify.

In the earlier guidelines, there was no mention of curtailment of power or charging ESS.

Regarding the ‘force majeure’ conditions, the amended clause adds that the generator should inform the procurer about the occurrence of ‘force majeure’ within 15 days. The procurer will decide on the claim within 15 days of the receipt of intimation. In the earlier guidelines, the time limit was 30 days.

In case the project is available to supply power, but the procurer does not offtake the power, the generator will be eligible for payment from the procurer. For claiming compensation, the generator must sell the power in a power exchange as a price taker.

As a price taker, a generator is not able to dictate the prices in a market and must only accept the prevailing market price.

However, any amount realized by the generator, by third-party sale or sale in the power exchange as price taker for renewable power or sale in the power exchange for non-renewable energy of such power which was offered but not scheduled, will be shared with the procurer in the following manner, after deducting expenses.

  • For renewable energy power: 95% of realization after deducting actual expenses. Earlier, it was 90% of the net realization.
  • For non-renewable energy power: 95% of realization above variable charges of non-renewable energy tariff. Earlier, it was 50% of the net realization above variable charges.

The guidelines for RTC power procurement have been amended repeatedly since the ministry issued regulations in July 2020.

Recently, the Solar Energy Corporation of India (SECI) issued revised the request for selection (RfS) document for the supply of 5 GW of RTC power from grid-connected renewable energy power projects, complemented with power from coal-based thermal power projects. The total tendered capacity was reduced to 2.5 GW from the initial 5 GW.

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