Ministry of Power Amends Competitive Bidding Guidelines for Wind Procurement
Wind projects to have 18-month commissioning timeframe
The Ministry of Power (MoP) has amended the competitive bidding guidelines for the procurement of power from grid-connected wind energy projects. This is the first time that these competitive bidding guidelines for wind have been amended since their formulation in December 2017.
The MoP has specified identifying 100% of the land at the time of bid submission and submission of documents to establish the possession should be made on or before the scheduled commissioning date (SCD).
Wherever the leasing of private land is involved, the lease should allow the transfer of land to the lenders or procurers in case of default of the wind generator.
The wind generator will declare the annual capacity utilization factor (CUF) of its project at the time of signing of the PPA and will be allowed to revise it once within the first three years of the commercial operation date of the project.
The calculation of the CUF will be yearly from April 1 of the year to March 31 of the next year. The declared annual CUF will in no case be less than 22%. The variation permitted in wind power generation from the declared CUF value will be indicated in the Request for Selection (RfS).
In case the project supplies energy less than the energy corresponding to the minimum CUF, the wind power generator will be liable to pay the penalty for the shortfall in the availability of energy. The amount of such penalty will be calculated at the rate of 50% of the PPA tariff for the shortfall in energy. The shortfall will be waived if it is due to non-availability of the grid for the evacuation of wind power.
According to the ministry, part commissioning of wind energy projects will be allowed. The minimum capacity for the acceptance of the first part commissioning will be 50% of the project capacity or 50 MW, whichever is lower. In the case of an interstate wind project, the minimum capacity for the acceptance of the first part commissioning will be at least 50 MW.
The wind power generator will be permitted for full commissioning as well as part commissioning of the wind power project even before the scheduled commissioning subject to availability of transmission connectivity and long-term access (LTA). In cases of early part commissioning, the procurer can purchase the generation at the PPA tariff.
According to the MoP, the wind projects must be commissioned within 18 months from the date of execution of the PPA or power sale agreement, whichever is later. However, if for some reason, the scheduled commissioning period needs to be kept higher than that provided in these guidelines, the procurer can do the same at his end. Any delay in commissioning beyond the scheduled date will lead to the levy of penalties on the wind power generator.
Recently, the ministry amended the competitive bidding guidelines for the procurement of power from grid-connected solar projects for the third time since formulation.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.