MOP Unveils Draft Amendment to TBCB Guidelines for Grid-Connected Power Procurement
The Ministry of Power (MOP) has unveiled a draft amendment to the Tariff-Based Competitive Bidding (TBCB) guidelines, aimed at optimising the procurement of power from grid-connected renewable energy projects, including solar, wind, wind-solar hybrid, and dispatchable power with energy storage systems.
October 29, 2024. By EI News Network
The amendment covers various project categories, including solar power projects, wind-solar hybrid projects, wind power projects, and for procurement of firm and dispatchable power sourced from grid-connected renewable energy power projects with energy storage systems.
As per the draft, the Power Purchase Agreement (PPA) period has been modified, which is reduced from 20 years to 15 years. However, it is extendable up to 25 years, allowing developers to operate their plants beyond this period and upgrade them at their own cost.
The amendments have introduced Insurance Surety Bonds as alternatives to Bank Guarantees for earnest money and performance guarantees. Finally, the draft clarifies that the Performance Bank Guarantee may be encashed to recover damages, with the stipulation that it “shall be returned to the generator within 45 days of the actual commencement of supply date.”
The guidelines now stipulate that if a generator fails to maintain the minimum Capacity Utilisation Factor (CUF) for three consecutive years, the procurers can either reduce their supply obligations or terminate the PPA, with damages payable equivalent to 24 months of the contracted tariff.
The amendments also emphasise the promotion of commercially established technologies and mandate the installation of GPS-enabled Automatic Weather Stations (AWS) by developers. Furthermore, the guidelines highlight the importance of compliance with cybersecurity regulations.
The distribution licensees must approach the Appropriate Commission for tariff adoption within 15 days of accepting the Letter of Award.
In terms of technical criteria, developers must install GPS-enabled Automatic Weather Stations and comply with cybersecurity regulations, ensuring sufficient competition in the bidding process.
Overall, these comprehensive amendments reflect a proactive approach by the government to enhance the competitive bidding process in the renewable energy sector, promoting innovation and efficiency across various technologies while ensuring a more stable energy future for India.
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