Guidelines for power purchase from hybrid power projects issued. Here’s what govt wants

• The MNRE has named state-run Solar Energy Corporation of India (SECI) as the nodal agency for the implementation of the guidelines

• The solar and wind projects may be located at same or different locations and storage may be added to the hybrid power project

New Delhi: In a set of guidelines released for the procurement of electricity from ISTS grid-connected wind-solar hybrid power projects, the government has mandated bidders to bid for a minimum of 50 MW and the duration of Power Purchase Agreement (PPA) to be not less than 25 years. The document released by the Ministry of New and Renewable Energy, which was reviewed by PSU Watch, has named state-run Solar Energy Corporation of India (SECI) as the nodal agency for the implementation of the guidelines.

"Individual minimum size of project allowed is 50 MW at one site and a single bidder cannot bid for less than 50 MW. Further, the rated power capacity of one resource (wind or solar) shall be at least 33 percent of the total contracted capacity," the document said. The MNRE said that the guidelines have been issued as a step towards the availability of renewable energy to DISCOMs at competitive rates. "These Guidelines would be applicable for wind solar hybrid bids, till notification of unified Guidelines," the ministry said.

Hybrid power projects: Duration of PPA period shouldn't be less than 25 yrs

The government also said that the duration of the PPA period should not be less than 25 years from the Scheduled Commissioning Date (SCD). "The Intermediary Procurer, i.e. SECI, shall enter into a Power Purchase Agreement (PPA) with the Hybrid Power Generator(s) and also enter into a Power Sale Agreement (PSA) with the distribution licensee(s) I consumer(s). The PSA shall contain the relevant provisions of the PPA on a back to back basis. In case SECt is not able to enter into a PSA to sell power from projects awarded to distribution licensee(s) or bulk consumers within six months from issue of letter of award, those projects would be cancelled," it said.

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Selection of hybrid power projects

The selection of the Hybrid Power Projects will be through a transparent e-bidding process followed by an e-reverse auction. The solar and wind projects may be located at same or different locations and storage may be added to the hybrid power project, the ministry said. "The power procured from the project may be used for fulfilment of solar RPO and non-solar RPO in the proportion of rated capacity of solar and wind power in the plant, respectively. The bidders may avail fiscal and financial incentives available for such projects as per prevailing conditions and Rules, and the same may be disclosed by the SECI in the Request for Selection (RfS) document," the MNRE said.

The backdrop

The government had issued the Wind-Solar Hybrid Policy on May 14, 2018, which was with the objective to provide a framework for the promotion of large grid-connected wind-solar PV hybrid system for optimal and efficient utilisation of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability.

Subsequently, a scheme for setting-up of 2,500 MW wind-solar hybrid power projects was sanctioned on May 25, 2018, for the procurement of hybrid power at a tariff discovered through transparent process of bidding by Solar Energy Corporation of India (SECI). Wind solar hybrid projects of 1,440 MW capacity have been awarded by SECI till date, under the above scheme.

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