## Report on Amendments to Guidelines for Tariff Based Competitive Bidding for Round-The-Clock Renewable Energy
**1. Executive Summary:**
This report analyzes amendments to the "Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects," originally notified on July 22, 2020, and amended on November 3, 2020. These amendments, published on February 5, 2021, primarily concern the definition of "Renewable Energy (RE) Power," Force Majeure clauses, and payment mechanisms for reduced power off-take by procurers. The key findings are that these changes aim to clarify the conditions under which power qualifies as RE power, standardize Force Majeure provisions, and establish a compensation framework for generators when procurers reduce power off-take, particularly emphasizing the "must run" status of RE power.
**2. Introduction:**
This report provides an informative analysis of the amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects, based solely on the information provided in the official gazette notification dated February 5, 2021. The report aims to inform affected industries about the nature and potential impact of these changes.
**3. Policy Overview:**
* **Original Policy:** "Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects" (notified July 22, 2020, and amended November 3, 2020).
* **Core Objective(s) (Inferred):** To facilitate the procurement of round-the-clock (RTC) power from grid-connected renewable energy (RE) projects, potentially complemented by power from other sources or storage, through a tariff-based competitive bidding process. The amendments further aim to address specific challenges and ambiguities in the initial guidelines related to RE power definition, risk allocation, and compensation for reduced off-take.
**4. Background and Rationale:**
The amendments appear designed to address specific issues that arose in the implementation or interpretation of the original guidelines. The clarifications regarding the definition of RE power, the standardization of Force Majeure clauses, and the establishment of compensation mechanisms for reduced off-take suggest a need to provide greater certainty and fairness to both generators and procurers. The reference to the "must run" status for RE power in the context of reduced off-take compensation indicates a priority to ensure the consistent utilization of renewable energy sources.
**5. Key Provisions / Changes:**
The amendment introduces three key changes:
* **2.1: Definition of Renewable Energy (RE) Power:**
* **Original Policy (Inferred):** The original policy likely had a definition of RE power, but this amendment refines it.
* **New Rule/Provision:** RE power is defined as power from Solar Power Generating Systems, Wind Power Generating Systems, or a combination thereof, with or without Energy Storage System (ESS). ESS must be charged *only* from RE power capacity to qualify as RE power. The same RE power considered for curtailment compensation can also be used for charging ESS.
* **Difference/Effect:** This change clarifies that ESS charging from non-RE sources disqualifies the output as RE power, tightening the criteria for what can be considered renewable energy under these guidelines. It establishes a direct link between curtailed RE power and ESS charging, emphasizing the renewable source for energy storage within these projects.
* **2.2: Force Majeure:**
* **Original Policy (Inferred):** The original policy contained provisions for Force Majeure, but this amendment mandates specific content.
* **New Rule/Provision:** The Power Purchase Agreement (PPA) shall contain provisions regarding Force Majeure definitions, exclusions, applicability, and available relief as per "Industry Standards." The generator must inform the procurer within 15 days of the Force Majeure event, and the procurer must decide on the claim within 15 days of the intimation.
* **Difference/Effect:** This amendment promotes standardization of Force Majeure clauses within PPAs, referencing "Industry Standards" to reduce ambiguity and potential disputes. It also sets a strict timeline for the notification and decision-making process related to Force Majeure events.
* **2.3: Payment in Case of Reduced Off-take:**
* **Original Policy (Inferred):** The original policy likely had provisions for payment in cases of reduced off-take, but this amendment introduces a specific formula and process.
* **New Rule/Provision:** If the plant is available but the procurer doesn't off-take the power (including non-dispatch due to non-compliance with Ministry of Power's Letter of Credit regulations), the generator is eligible for compensation, adhering to the "must run" status for RE power and fixed charges for thermal power. The generator *must* sell their power in the power exchange as a price taker to claim compensation. The compensation is based on the difference between the actual generation (up to declared capacity, limited by contracted capacity) and the power scheduled by the procurer, calculated using a specific formula involving RE Tariff and Non-RE Fixed Charges. Revenues from third-party sales or power exchange sales of the un-scheduled power shall be shared with the procurer, at 95% of the realization after deducting expenses, if any, in such sale.
* **Difference/Effect:** This amendment provides a clearer, formula-based approach to compensating generators when procurers reduce off-take. It introduces a requirement for generators to sell the unscheduled power in the power exchange and share the revenue with the procurer, reducing the procurer's financial burden and incentivizing the generator to find alternative buyers for the electricity.. This attempts to balance the interests of both the generator (ensuring revenue) and the procurer (managing costs).
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by these amendments include:
* Renewable energy power generators participating in tariff-based competitive bidding processes.
* Power procurers (distribution licensees) purchasing RTC power from RE projects.
* Energy storage system (ESS) providers integrating ESS with RE projects.
* Regulatory bodies and commissions involved in electricity regulation and tariff determination.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** The Ministry of Power is the primary body responsible for issuing these guidelines. The Appropriate Commission is responsible for regulations regarding forecasting and scheduling process.
* **Timelines/Procedures:** The Force Majeure clause amendment specifies a 15-day timeline for both the generator's notification and the procurer's decision. The compensation mechanism for reduced off-take requires adherence to the regulations of the Appropriate Commission. Also, the amendment dictates the generator *must* sell their power in the power exchange as a price taker to claim compensation.
* **Amendment-Specific Implementation:** Generators seeking compensation for reduced off-take will need to implement systems for tracking power generation, scheduling, and sales in the power exchange. Procurers will need to establish processes for verifying these claims and making appropriate payments. Adherence to the MoP's Letter of Credit regulations is crucial.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these amendments are likely to be:
* Greater clarity and certainty regarding the definition of RE power, preventing disputes and ensuring consistent application of the guidelines.
* Standardized Force Majeure clauses in PPAs, facilitating smoother resolution of unforeseen events and reducing contractual risks.
* A fairer and more transparent compensation mechanism for reduced off-take, incentivizing procurers to adhere to their contractual obligations and ensuring revenue stability for generators.
* Increased utilization of renewable energy sources, aligning with the "must run" status principle.
**9. Conclusion:**
The amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects represent a fine-tuning of existing regulations. These changes, focused on clarifying definitions, standardizing risk allocation, and improving compensation mechanisms, are likely to contribute to a more stable and predictable environment for RE power procurement in India. The amendments signify a commitment to promoting renewable energy while addressing the practical challenges of integrating it into the grid.
Key Entities Referenced
New Delhi: Location where the resolution was issued.
Electricity Act, 2003: Act under which the guidelines for tariff based competitive bidding process are notified.
Ministry of Power: The government ministry issuing the resolution and guidelines.
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects: The main subject of the notification, concerning the procurement of round-the-clock power from renewable energy sources.
Coal Based Thermal Power Projects: Source of power that can be combined with Renewable Energy Power Projects.
Gazette of India: Official government publication where the resolution was published.
Energy Storage System ESS: A system for storing energy, especially renewable energy.
Power Purchase Agreements: Agreements under which power is purchased.
Appropriate Commission: Body responsible for regulations regarding forecasting and scheduling process.
Order No. 23222019RR: Order of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit LC as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees.
Ghanshyam Prasad: Jt. Secy.
Mayapuri, New Delhi: Location of the Dte. of Printing at Government of India Press.
Delhi: Location of the Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-05022021-224975
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CG-DL-E-05022021-224975
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असाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 46] नई दिल्ली, िुक्रिार, फरिरी 5, 2021/माघ 16, 1942
No. 46] NEW DELHI, FRIDAY, FEBRUARY 5, 2021/MAGHA 16, 1942
जिद्यतु मत्रं ालय
संकल्प
नई दिल्ली, 5 फरिरी, 2021
दकसी भी अन्य स्रोत अथिा भडं ार स े प्राप्त जिद्यतु स े पररपरू रत, जिड सबं द्ध अक्षय ऊिा ा जिद्यतु पररयोिनाओं स े चौबीसों
घटं े (राउंड ि क्लॉक) जिद्यतु क्रय करन ेके जलए टैररफ आधाररत प्रजतस्ट्पधी बोली प्रदक्रया के जलए दििाजनिेिों म ेंसिं ोधन
स.ं 23/05/2020-आरएण्डआर.—
1.0 जिद्युत अजधजनयम, 2003 की धारा 63 के उपबंधों के अंतगात कोयला आधाररत तापीय जिद्युत पररयोिनाओं स े
पररपूररत, जिड संबद्ध अक्षय ऊिाा जिद्युत पररयोिनाओं से चौबीसों घंटे (राउंड ि क्लॉक) जिद्युत क्रय करन े के
जलए टैररफ आधाररत प्रजतस्ट्पधी बोली प्रदक्रया के जलए दििाजनिेिों को दिनांक 22 िुलाई, 2020 को भारत के
रािपत्र (असाधारण) (भाग-। - खण्ड-1) में प्रकाजित सकं ल् प सं् या 23/05/2020-आरएण्डआर के द्वारा
अजधसूजचत दकया गया ह ै तथा भारत के रािपत्र (असाधारण) (भाग-। - खण्ड-1) म ें प्रकाजित संकल्प सं् या सं.
23/05/2020-आरएण्डआर दिनांक 03 निंबर, 2020 के द्वारा संिोजधत दकया गया ह।ै
2.0 दिनांक 03 निंबर, 2020 को संिोजधत 22 िलु ाई, 2020 के उक्त दििाजनिेिों में एतद्द्वारा जनम्न जलजखत
संिोधन दकए िात े ह:ैं
2.1 बबंि ुसं् या 2.2(ख) पर पैरा को जननानानुसार पा ा िाए
अक्षय ऊिा ा (आरई) जिद्यतु : इन दििाजनिेिों में िहां कहीं भी ‘आरई जिद्युत’अथिा ‘अक्षय ऊिाा’अथिा ‘अक्षय
ऊिाा जिद्युत’ िब्ि का प्रयोग हुआ ह,ै िह इन दििाजनिेिों के तहत बोली प्रदक्रया के अनुसरण में चाल ूकी गई ऊिा ा
भंडारण प्रणाली (ईएसएस) के साथ अथिा उसके जबना, सौर जिद्युत उत्पािन प्रणाजलयों, पिन जिद्युत उत्पािन
748 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
प्रणाजलयों अथिा तत्संबंधी सजम्मश्रण के संिभ ा में होगा। यह स्ट्पष्ट दकया िाता ह ै दक अक्षय ऊिाा जिद्युत के अलािा
अन्य स्रोत का उपयोग करके चािा की गई ऊिाा भडं ारण प्रणाली को आरई जिद्युत के रूप म ें नहीं माना िाएगा।
इसके अजतररक्त, इन दििा-जनिेिों के तहत दकसी पररयोिना के साथ प्रस्ट्तुत की गई ऊिा ा भंडारण प्रणाली को
केिल अक्षय ऊिाा जिद्युत क्षमता का उपयोग करके ही चािा दकया िाना चाजहए। उसी अक्षय ऊिाा जिद्युत के संबंध
में कटौती के मामल े में यातो मआु ििा पाने या ऊिाा भडं ारण प्रणाली के चार्ििंग के जलए जिचार दकया िाएगा।
2.2 पैराओं 7.4.1, 7.4.2.1, 7.4.2.2, 7.4.3.1, 7.4.4.1, 7.4.4.2, 7.4.4.3, 7.4.5.1,
7.4.5.2, 7.4.5.3, 7.4.5.4, 7.4.6, 7.4.7, 7.4.8.1, 7.4.8.2 को जननानानसु ार पा ा िाएः
"7.4 अप्रत्याजित घटनाः
7.4.1 पीपीए म ें उद्योगों के मानकों के अनुसार अप्रत्याजित घटना के कारण अप्रत्याजित घटना की पररभाषाओं,
बजहष्करणों, प्रयोज्यता तथा उपलब्ध राहत के संिभा म ें प्रािधान होंगे। उत्पािक अप्रत्याजित घटना के िुरू होन े के
15 (पन्रह) दिनों के भीतर अप्रत्याजित घटना के बारे में खरीिार को सूजचत करेगा तथा खरीिार सूचना प्राप्त होन े
के 15 दिनों के भीतर अपने िािे पर जनणाय लगे ा।"
2.3 बबंि ुसं् या 7.5 (ख)पर परै ा को जननानानुसार पा ा िाए
"घटे हुए ऑफटेक के मामल े म ें भगु तानः उत्पािक और खरीिार उपयक्तु आयोग द्वारा इस संबंध में िारी जिजनिेिों
के अनुसार पूिाानुमान और जिड्यूबलगं प्रदक्रया का अनुसरण करेंगे। यदि संयत्र जिद्युत आपूर्ता के जलए उपलब्ध ह ै
परंत ु खरीिार द्वारा "जितरण लाईसेंसधाररयों द्वारा जिद्युत खरीि करार के तहत भुगतान सुरक्षा तंत्र के रूप म ें
पयााप्त लेटर ऑफ क्रेजडट (एलसी) िुरु करने और संचाजलत करने के संबंध में जिद्युत मंत्रालय के दिनांक
28.06.2019 के आिेि स.ं 23/22/2019-आरएडं आर’’ और इससे संबंजधत दकसी स्ट्पष्टीकरण या संिोधन की
अनुपालना न होन े के कारण जिद्युत की आपूर्त ा न होन े सजहत जिद्युत ऑफटेक नहीं दकया िाता है, तो आरई जिद्यतु
के जलए 'मस्ट्ट रन' जस्ट्थजत और तापीय जिद्युत के जलए जनधााररत िल्ु कों को ध्यान म ें रखत े हुए, उत्पािक खरीिार स े
भुगतान के जलए जननानजलजखत तरीके से घटे ऑफटेक के अनुरूप भुगतान प्राप्त करने के जलए पात्र होगा। मुआििे का
िािा करन े के जलए उत्पािक को एक प्राइस टेकर के रुप म ें पािर एक्सचेंि म ें अपनी जिद्यतु बेचनी चाजहए। इस
प्रकार मआु ििा घोजषत क्षमता तक िास्ट्तजिक उत्पािन के अन्तर तक सीजमत होगा िो अजधकतम अनुबंजधत क्षमता
और खरीिार द्वारा जिड्यूल की गई जिद्युत की मात्रा के अध्यधीन होगा।
घटा हुआ ऑफटेक उत्पािन मुआििे के जलए प्रािधान
उत्पािन मुआििा = ((आरई टैररफ x आरई जिद्युत (मेगािाट,) िो खरीिार द्वारा प्रस्ट्ताजित थी,
परंतु जिड्यूल नहीं हुई) + (गैर-आरई जनधााररत िल्ु क x अन्य स्रोतों से जिद्युत (मेगािाट), िो
खरीिार द्वारा प्रस्ट्ताजित थी, परंत ु जिड्यलू नहीं हुई)) X 1000 X घटे हुए ऑफटेक के घण्टों की
सं्या
तथाजप, उत्पािक द्वारा, तीसरे पक्ष को बेची गई अथिा आरई जिद्युत के जलए प्राइस टेकर के रूप म ें
जिद्युत जिजनमय में बेची गई अथिा गैर-आरई जिद्युत के जलए जिद्युत जिजनमय म ें बेची गई ऐसी
जिद्युत िो प्रस्ट्ताजित थी, पर जिड्यूल नहीं हुई, उससे प्राप्त कोई धनराजि, यदि ऐसी जबक्री में कोई
खचा हुआ हो, तो उसकी कटौती के बाि, खरीिार से जननानानुसार जहस्ट्सेिारी की िाएगी, और माजसक
आधार पर िेय उत्पािन मआु ििे में समायोजित की िाएगी।
(क) आरई जिद्यतु के जलएः
ऐसी जबक्री में, यदि कोई हो, िास्ट्तजिक जबक्री में कटौती के बाि 95% िसूली
(ख) गरै -आरई जिद्यतु के जलएः
ऐसी जबक्री में, यदि कोई हो, िास्ट्तजिक जबक्री में कटौती के बाि गैर-आरई टैररफ के पररितानीय
िुल्कों से अजधक 95% की िसलू ी
घनश्याम प्रसाि, संयुक्त सजचि[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3
MINISTRY OF POWER
RESOLUTION
New Delhi, the 5th February, 2021
Amendments to the 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 any other source or storage
No. 23/05/2020-R&R.—
1.0 The 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 have been notified under the provisions of Section 63 of the
Electricity Act, 2003 vide resolution No. 23/05/2020-R&R published in the Gazette of India
(Extraordinary) (Part I - Section 1) on 22nd July, 2020 and have been amended vide resolution No.
23/05/2020-R&R dated 3rd November, 2020 published in the Gazette of India (Extraordinary) (Part I -
Section 1).
2.0 The following amendments are hereby made in the said guidelines of 22nd July, 2020 amended on
3rd November, 2020 namely:-
2.1 The Para at point no 2.2(b) may be read as under:
“Renewable (RE) Power’: The term ‘RE Power’, or ‘Renewable Power’, or ‘Renewable Energy
Power’, wherever used in these Guidelines, shall refer to power from Solar Power Generating
Systems, Wind Power Generating Systems, or a combination thereof, with or without Energy
Storage System (ESS), commissioned in pursuance of bidding process under these Guidelines. It is
clarified that ESS charged using a source other than RE power would not qualify as RE power.
Further, the ESS offered with a project under these Guidelines should only be charged from RE
power capacity.The same RE power shall either be considered for getting compensation in case of
curtailment or for charging of ESS.”
2.2 The paras 7.4.1, 7.4.2.1, 7.4.2.2, 7.4.3.1, 7.4.4.1, 7.4.4.2, 7.4.4.3, 7.4.5.1, 7.4.5.2,
7.4.5.3, 7.4.5.4, 7.4.6, 7.4.7, 7.4.8.1, 7.4.8.2 may be read as under
“7.4 Force Majeure:
7.4.1 The PPA shall contain provisions with regard to Force Majeure definitions, exclusions,
applicability and available relief on account of force majeure as per the Industry Standards. The
Generator shall intimate the procurer about the occurrence of force majeure within 15(fifteen)
days of the start of the force majeure and the procurer shall take a decision on his claim within 15
days of the receipt of the intimation.”
2.3 The Para at point no 7.5 (b) may be read as under
Payment in case of reduced off take:The Generator and the Procurer shall follow the
forecasting and scheduling process as per the regulations in this regard by the Appropriate
Commission. In case the plant is available to supply power but the off take of power is not
done by the Procurer, including non-dispatch of power due to non-compliance with “Order
No. 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and
maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under
Power Purchase Agreements by Distribution Licensees” and any clarifications or
amendment thereto, considering the principle of ‘must run’ status for RE Power, and the
Fixed charges for thermal power, the Generator shall be eligible for payment from the
Procurer, corresponding to the reduced off take, in terms of following manner. For
claiming compensation the generator must sell their power in the power exchange as a
price taker. Thus, the compensation would be limited to the difference of the actual4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
generation up to declared capacity subject to a maximum of up to the contracted capacity
and the quantum of power scheduled by the procurer.
Reduced off Provision for Generation Compensation
take
Generation Compensation = (( RE Tariff x RE power (MW) offered but not
scheduled by Procurer ) + (Non RE Fixed Charge x power from other source
(MW) offered but not scheduled by Procurer) ) X 1000 X No. of hours of
Reduced Off take.
However, any amount realized by the Generator, by third party sale or sale in the
power exchange as price taker for RE power or sale in the power exchange for
Non-RE powerof such power which was offered but not scheduled, shall be
shared with the Procurer in the following manner, after deducting expenses, if
any, in such sale, and shall be adjusted against the Generation compensation
payable, on monthly basis.
(a) For RE Power:
95% of realization after deducting actual expenses, if any, in such sale
(b) For Non RE Power:
95% of realization above variable Charges of Non RE Tariff after deducting
actual expenses, if any, in such sale
GHANSHYAM PRASAD, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.