The Ministry of New & Renewable Energy (MNRE) today said its standards for toll based bidding for procuring solar power would reduce danger, improve openness and boost price.
The MNRE had provided the brand-new guidelines for toll based affordable bidding procedure on August 3.
The guidelines have been provided under the arrangements of Section 63 of the Electricity Act, 2003 for long-term purchase from grid-connected Solar PV Power Projects of 5 MW and above, via affordable bidding.
" New Guidelines for Tariff Based Competitive Bidding Process to decrease danger, improve openness as well as rise cost of Solar Power," the ministry claimed in a statement.
Besides, it stated, the action will certainly help protect consumer passions with budget friendly power.
It will also supply standardisation and harmony in processes and also a risk-sharing framework in between different stakeholders associated with the solar PV power purchase, it claimed.
This will also help in reducing off-taker danger as well as motivate financial investments, boost bankability of the Projects and boost productivity for the investors, it included.
A few of the salient attributes of the brand-new standards include generation payment for offtake restraints for reducing offtake dangers
The 'must-run' standing for solar jobs has actually been worried upon.
To guarantee lower tolls, minimum PPA (power purchase arrangement) period has actually been maintained at 25 years. Furthermore independent discontinuation or amendment of PPA is not allowed.
The guidelines likewise improve the stipulation for task preparedness to speed up and assist in the establishing up of tasks.
Better, they provides for termination settlement to raise bankability of tasks by protecting the investment by the generator and the loan providers against any arbitrary discontinuation of PPA.
Under the norms, the risk of generator's earnings obtaining blocked due to delayed payment/non-payment by the procurers has been dealt with through arrangement of Payment Security Mechanism with tools like Letter of Credit (LC), Payment Security Fund and State Guarantee.
It likewise attends to modification in regulation provision to offer clearness and also assurance to generators, procurers, and also investors/lenders.
The charges have actually been rationalized so as to decrease the overall cost to the generator, while at the exact same time, guaranteeing compliance with the Commissioning Schedule/Scheme Guidelines. The standards give that generators are cost-free to repower their plants.
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