Solar-wind hybrid projects will be cancelled if they fail to sign PSA within six months

The annual capability utilization aspect of these proposals should not be minor than 30%

NEW DELHI (Natural Energy News): Solar-wind hybrid projects will be cancelled if they fail to sign PSA within six months.

The Ministry of New and Renewable Energy (MNRE) has issued tariff-based competitive bidding guidelines for power purchase from grid-connected solar-wind hybrid projects. The policies state that the Solar Energy Corporation (SECI) will be the nodal factor of India to execute these strategies. If SECI cannot enter into a power sale agreement (PSA) to sell power from these projects provided within six months from the date of issue of the letter to SECI, the projects will be cancelled.

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The objective is to provide a roadmap for the purchase of power from wind-solar hybrid power projects connected to the interstate transmission system (ISS) through a competitive bidding route. They are also meant to protect consumer interest, enable transparency and fairness in procurement, and provide a risk-sharing framework among all stakeholders.

Competitive Bidding:

The guidelines announced that all hybrid power projects (wind-solar hybrids) would be selected through a transparent e-bidding process followed by an e-reverse auction. The power purchase agreement (PPA) for these projects should not be less than 25 years from the scheduled commission date (SCOD).

The power derived from these projects can be used in proportion to the rated capacity of wind and solar power in the hybrid project by purchasing the entities to meet their solar and non-solar RPOs.

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Power procurers can opt for a fixed tariff as Rs 25 per kilowatt (W / kWh) for Rs 25 or more. Alternatively, they can choose an increased tariff in k / kWh with a pre-defined number of annual increases. These increases will also be decided in terms of k / kWh and the number of years from which the increase will begin.

Project Requirements:

The rated power capacity of one of the renewable energy sources should be at least 33% of the total contracted capacity of the project, which falls within the guidelines.

They allowed individual solar and wind components of these hybrid projects to be implemented at the same or different locations. These projects can be linked to battery energy storage systems (BESS). The minimum permitted size for these hybrid projects is 50 MW at one site. Bidders are not allowed to bid less than 50 MW.

Nodal Agencies:

He also said that state governments will appoint state nodal agencies. State nodal agencies will support the developers by facilitating necessary approvals and restrictions to ensure that the project is operational within the specified time. They will also conform with state and central agencies to increase undertaking execution.

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As per the new guidelines, bidders are expected to submit documents or lease agreements, showing that they own and fully own the land required in their name for the PPA period on or before SPOD. 100% right to use. If the private land is leased, the lease should allow the transfer of the right to lease the land to the lenders or buyer if any default is in favour of the hybrid power generator.

Besides, the selected bidders are also required to provide No Objection Certificate (NOC), Environmental Clearance, Forest Clearance, NOC from Ministry of Defense, Central Transmission Utility (CTU), technical feasibility to add to the project. Confirms Substation, and any other clearance as required.

Capacity Utilization Factor:

MNRE proclaimed that the declared annual capability utilization factor (CUF) should not be minor than 30%. Generators must preserve a production point to attain an at least CUF 90% and an at most CUF 120% of the proclaimed value. The annual CUF will be calculated from 1 April to 31 March every year.

If electricity is produced more than the maximum CUF, generators can sell it to another entity with the approval of the buyer. If the buyer purchases additional generation, they are expected to pay 75% of the PPA tariff.

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The declared guidelines stated that duly hybrid power projects should not be ordered to be returned generation by generation company (DISCOM) or load dispute centre. In the event of non-compliance, backdown or power is not sent, the power generator is eligible for minimum generation compensation from the buyer. This is to be paid along with the energy bill for consecutive months.

If electricity is supported or switched off for grid safety or security reasons, generators will not be eligible for any compensation.

Key Time:

There should be a gap of at least 22 days between the issue of Request for Selection (RFS) documents and the last date for submission of bids. Bids should be evaluated and Letter of Intent (LoI) within 110 days from RfS issues. PPAs and PSAs must be approved within 140 days.

The hybrid power generator is expected to undergo a financial closure as per the terms of the PPA within 12 months from the date of execution of the power purchase agreements. Projects must be commissioned within 18 months from the date of execution of the PPA.

Commission Delay:

If commissioning from SCOD is delayed by less than six months, the deposited bank guarantee can be encoded daily based on the proportion of project capacity that has not been commissioned. If SCOD is delayed more than six months, it will be considered a "generator event of default", and the contracted capacity will be reduced to that point. PPA for capacity that is not completed and commissioned.

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If commissioning is delayed as a result of commissioning in obtaining a long-term use (LTA) agreement or in readiness of an ISTS substation, delivery point, power clearance, or transmission system infrastructure, they will be considered beyond the control of the generator. . Subsequently, SCOD will be extended to 60 days after addressing the setback.

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