Rules Amended for Bundling Renewables With Thermal & Hydropower Projects
The renewable energy project must be established through a competitive EPC tendering process
The Ministry of Power has amended the program for bundling renewables and storage with thermal and hydropower projects to allow the setting up of renewable energy projects not co-located in the engineering, procurement, and construction (EPC) tendering mode or through joint ventures.
The amendments to the ‘Flexibility in Generation and Scheduling of Thermal and Hydropower Projects through Bundling with Renewable Energy and Storage Power’ program were issued after the Ministry received several requests to relax certain provisions
The Ministry has also clarified the provisions for co-located renewable energy projects and their tariff determination process.
In August last year, the Ministry of Power issued guidelines for competitive procurement of renewable power by thermal and hydropower generators under the Generation Flexibility Program. The program intended to allow flexibility in the generation and scheduling of thermal and hydropower stations by bundling renewable energy and storage.
The guidelines aim to promote competitive procurement of renewable energy by thermal and hydropower generators to reduce emissions.
According to the amendments, in the case of renewable energy projects co-located in the premises of the generating station (thermal plants and hydropower projects), the appropriate commission will determine the tariff of the renewable energy supplied, provided the renewable energy project has been established through a competitive EPC tendering process.
Also, the generating company can establish a renewable energy project within the premises of the generating station through a joint venture company if the generating company has at least a 26% share in the joint venture.
The renewable energy project in this scenario, too, must be established through a competitive EPC tendering process.
Further, any central or state generating company can establish a renewable energy project which is not co-located through a competitive EPC tendering process after being authorized by the appropriate state government.
In all other cases, renewable energy for such projects under the program will be procured at a tariff discovered through a competitive bidding process.
Earlier, the Ministry of Power had outlined a detailed mechanism allowing bundling thermal and hydropower projects with standalone renewable energy projects or renewable energy projects with battery storage systems either through setting up renewable energy generation capacities themselves or through developers by inviting bids.
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