SECI Amends RfS Guidelines for 2 GW ISTS-Connected Wind Tranche-IV Tender
Under the new amendments, SECI has also provided for the formation of Special Purpose Vehicles for the development of the wind projects
March 6, 2018
The Solar Energy Corporation of India (SECI) has amended the guidelines for the Request for Selection (RfS) to develop 2 GW of Inter-State Transmission System (ISTS)-connected wind power projects under Tranche-IV.
Under the new amendments, if the commissioning of the project is delayed by over six months, the quoted tariff will be reduced at the rate of ₹0.15 (~$0.0023)/kWh for each day of the delay. Under the original RfS, the rate of reduction in tariff had been fixed at ₹0.50 (~$0.007)/kWh per day of the delay.
Moreover, the capacity awarded and developed will now be used for the non-solar Renewable Purchase Obligation (RPO) requirements of the buying distribution company (DISCOM). SECI will also intimate the central transmission utility Power Grid Corporation of India Limited (PGCIL) for open access. The quantity may be revised based on the input from PGCIL and corridor availability. The original RfS did not have this provision.
SECI has also provided for the formation of Special Purpose Vehicles (SPVs) for the development of these wind projects. To ensure fair-play, SECI has introduced a provision under which the applicable tariff payable by the buying entity will be the one quoted by the project developer until the commissioning of the cumulative capacity by SECI under the RfS. After the entire 2 GW capacity has been commissioned, only then the applicable tariff will be the pooled tariff, payable by the buying entity.
In case of early part-commissioning, the buying utility will purchase the generation at 75 percent of the tariff plus trading margin of ₹0.07 (~$0.001)/kWh till the achievement of full commissioning or scheduled commissioning date. In the original RfS, there was no mention of a trading margin.
As reported previously by Mercom, SECI had tendered the capacity in February 2018.
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.