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Date: 17-May-2024 Category: Extra Ordinary State: Union Government Country: India

In pursuance of paragraph 5 1 and paragraph 6 4 of the Ministry of Power s Resolution dated 22 07 2020 on Guidelines for Tariff Based Competitive Bidding Process

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The Central Electricity Regulatory Commission (CERC) has notified the annual escalation rates and discount rate for bid evaluation of Round-The-Clock (RTC) power procurement from grid-connected Renewable Energy (RE) projects, complemented with power from Coal Based Thermal Power Projects. These rates are applicable for bid openings up to March 31, 2025.

Key Changes

  • Escalation rate for domestic coal is set at 3.59%.
  • Escalation rate for domestic gas is set at 2.66%.
  • Escalation rates for inland transportation charges for coal vary based on distance:
  • Up to 125 km: 11.56%
  • Up to 500 km: 7.22%
  • Up to 1000 km: 6.44%
  • Up to 2000 km: 4.39%
  • Beyond 2000 km: 3.87%
  • Escalation rate for inland transportation charges for gas is set at 4.80%.
  • Escalation rate for imported coal is set at 3.05%.
  • Escalation rate for imported gas is set at -3.97%.
  • Escalation rate for transportation of imported coal is set at -6.53%.
  • Escalation rate for transportation of imported gas is set at -6.53%.
  • The discount rate to be used for bid evaluation is 9.25%.

Impact Analysis

Renewable Energy Project Developers

  • Action Items: Incorporate the notified escalation and discount rates into financial models for upcoming bids. Assess the impact of these rates on project viability and competitiveness.

Coal Based Thermal Power Plants

  • Action Items: Re-evaluate fuel sourcing and transportation strategies based on the notified escalation rates. Optimize operational efficiencies to mitigate the impact of cost escalations.

Electricity Regulatory Bodies

  • Action Items: Ensure strict adherence to the notified rates and parameters during bid evaluations. Monitor the effectiveness of these guidelines in promoting RTC power procurement.

Power Procurers (DISCOMs)

  • Action Items: Utilize the notified rates for bid evaluation to ensure optimal power procurement costs. Analyze the long-term implications of these rates on power purchase agreements (PPAs).

Investors

  • Action Items: Factor in the notified escalation and discount rates when assessing investment opportunities in RTC power projects. Conduct thorough due diligence to evaluate project risks and returns.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The regulatory body responsible for notifying the rates and parameters for bid evaluation. Ministry of Power: The ministry that issued the resolution dated 22.07.2020, providing the framework for tariff-based competitive bidding for RTC power. "Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The-Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based Thermal Power Projects": The guidelines issued by the Ministry of Power on 22.07.2020 (amended on 03.11.2020), which this notification supplements.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-18052024-254248 xxxGIDHxxx CG-DL-E-18052024-254248 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 364] नई दिल्ली, िुक्रवार, मई 17, 2024/विै ाख 27, 1946 No. 364] NEW DELHI, FRIDAY, MAY 17, 2024/VAISAKHA 27, 1946 ubZ fnYyh] 19 vçSy] 2024 fnukad 03-11-2020 ds la'kk/s ku ds lkFk ifBr **dks;yk vk/kkfjr FkeZy ikoj ifj;kstukvkas ls ikoj ds lkFk laiwjd] fxzM lac) uohdj.kh; ÅtkZ fo|rq ifj;kts ukvks a ls jkm.M fn DykWd fo|qr dh izkfIr ds fy, VSfjQ vk/kkfjr izfrLi/kkZRed ckys h izfØ;k ds fy, ekxZfunsZ'k** ij fnukad 22-07-2020 ls lacaf/kr fo|qr e=a ky; ds izLrko ds iSjkxzkQ 5-1 vkSj iSjkxzkQ 6-4 ds vuqlj.k eas dsUnzh; fo|qr fofu;ked vk;kxs ckys h eYw ;kda u ds ç;kts u ds fy, fuEufyf[kr njks a vkSj vU; ekin.Mks a dk s vf/klwfpr djrk gSA I: % 1- Lons'kh dk;s yk ds fy, o`f) nj 3.59 2- Lons'kh xSl ds fy, o`f) nj 2.66 3- dk;s ys ds varnsZ'kh; ifjogu çHkkj gsrq o`f) njs a 3-1 125 fdykes hVj dh nwjh rd 11.56 3090 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 3-2 500 fdykes hVj dh nwjh rd 7.22 3-3 1000 fdykes hVj dh nwjh rd 6.44 3-4 2000 fdykes hVj dh nwjh rd 4.39 3-5 2000 fdykes hVj dh nwjh ls vkxs 3.87 4- xSl ds varnsZ'kh; ifjogu çHkkj grs q o`f) nj 4.80 5- vk;kfrr dks;ys ds fy, o`f) nj 3.05 6- vk;kfrr xSl ds fy, o`f) nj (-)3.97 7- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)6.53 8- vk;kfrr xSl ds ifjogu ds fy, o`f) nj (-)6.53 9- ckys h eYw ;kda u ds fy, ç;qDr dh tkus okyh NwV nj 9.25 gjizhr Çlg izqFkh] lfpo [जवज्ञापन-III/4/असा./133/2024-25] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 19th April, 2024 No. Eco-E/2024-CERC.—In pursuance of paragraph 5.1 and paragraph 6.4 of the Ministry of Power’s Resolution dated 22.07.2020 on “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The-Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based Thermal Power Projects” read with amendment dated 03.11.2020, the Central Electricity Regulatory Commission notifies the following rates and other parameters for the purpose of bid evaluation. I: Annual Escalation Rates for Bid Evaluation (for bid opening up to 31.03.2025) Sr. Description Annual Escalation Rates for Bid No. Evaluation (%) 1 Escalation rate for domestic coal 3.59 2 Escalation rate for domestic gas 2.66 3 Escalation rate for inland transportation charges for coal 3.1 Up to 125 Km distance 11.56 3.2 Up to 500 Km distance 7.22 3.3 Up to 1000 Km distance 6.44 3.4 Up to 2000 Km distance 4.39 3.5 Beyond 2000 Km distance 3.87 4 Escalation rate for inland transportation charges for gas 4.80 5 Escalation rate for imported coal 3.05 6 Escalation rate for imported gas (-)3.97 7 Escalation rate for transportation of imported coal (-)6.53 8 Escalation rate for transportation of imported gas (-)6.53 9 Discount rate to be used for bid evaluation 9.25 HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./133/2024-25] 5Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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