New Delhi, Dec 12 (PTI) The power ministry today said ithas issued guidelines for transparent procurement of windpower through tariff-based competitive bidding in a bid toboost the clean source of energy.
The government has already auctioned 2 GW wind capacityso for in the first and second round this year. In the thirdround, it has floated tender for another 2 GW capacity lastweek.
The norms are significant because the government haddecided to put for bidding 10 GW wind capacities each in 2018-19 and 2019-20 to meet the target of 60 GW by 2022. Atpresent, wind power installed capacity is 32 GW.
The government has issued guidelines under Section 63 ofthe Electricity Act, 2003, providing a framework forprocurement of wind power through a transparent process ofbidding including standardisation of the process and definingof roles and responsibilities of various stakeholders, a powerministry statement said today.
According to the the statement, these guidelines aim toenable the distribution licensees to procure wind power atcompetitive rates in a cost-effective manner.
It said the guidelines are applicable for procurement ofwind power from grid-connected wind power projects (WPP)having individual size of 5 MW and above at one site withminimum bid capacity of 25 MW for intra-state projects.
Besides, it will also cover individual size of 50 MW andabove at one site with minimum bid capacity of 50 MW forinter-state projects.
The key components the guidelines include compensationfor grid unavailability and backing-down, robust paymentsecurity mechanism, standardisation of bidding process, risk-sharing framework between various stakeholders throughprovisions like change in law, force majeure, measures in caseof default of procurer as also by generator.
The ministry said these guidelines will give boost to thewind power sector as it would facilitate the windy states togo for bidding process for procurement of wind powerthemselves.
After transition of tariff regime from feed in tariffsto bidding route, it was mainly the central government bidsthrough SECI (Solar Energy Corporation of India), which werehelping the sector. State bids from Tamil Nadu and Gujarat hadobjections from the wind sector in absence of guidelines, itadded.
The ministry further said, "In view of very competitivetariffs of Rs 2.64 per unit discovered through the SECIÂ’ssecond bid, the availability of these guidelines for states,the wind power sector is poised for a strong growth pathtowards achievement of 60 GW by 2022."Commenting on guidelines, Sabyasachi Majumdar, SeniorVice President & Group Head, ICRA Ratings, said, "The paymentsecurity approved in the new bidding guidelines has not beenseen in PPAs signed by the state distribution utilities(discoms) with wind power developers in the past.
"This along with the measures on compensation for gridcurtailment and termination payments, if implemented, isfavourable for the wind power developers and improves thebankability of the PPA document." PTI KKSMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.