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Home Renewable

MoP amends bidding guidelines for renewable energy to streamline project commencement

editor by editor
February 9, 2024
in Renewable
Reading Time: 1 min read
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Ministry of Power (MoP) has introduced amendments to renewable energy bidding guidelines, transforming the competitive bidding process for grid-connected projects with energy storage. The update centers on enhancing Clause 14.3 to specifically tackle delays in initiating power supply.

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Previously, the generator used to be subject to penalties, such as the encashment of the performance bank guarantee or other instruments on a daily basis proportionate to the contracted capacity that has not initiated power supply, if power supply was delayed beyond the scheduled commercial operation date (SCOD) for up to six months. If the power supply commencement was delayed by more than six months from the SCOD, the contracted capacity was adjusted to the project capacity that had initiated power supply within the SCOD plus an additional six months. As a result, the power purchase agreement for the remaining contracted capacity, which had not commenced power supply, was also cancelled. Previously, in instances of such delays, the renewable energy generator could be debarred from participating in future tenders for a period of up to three years. However, in the recent revision, the MoP has removed the provision that pertained to debarring renewable energy generators in instances of delays in initiating power supply.

In December 2023, in an effort to enhance the hydroelectric power capacity in the country, MoP announced establishment of 13 hydroelectric projects in Arunachal Pradesh, collectively providing a capacity of 13,000 MW.

In November 2023, MoP updated the Biomass Co-Firing Policy to establish biomass pellets price benchmark used in co-firing within thermal power plants.

Tags: BiomassHydroelectric PowerMoPRenewable EnergySCODThermal power plants
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