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MNRE issues bidding Guidelines for setting up 1000 MW Wind Power Projects connected to ISTS scheme

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Capital Market
Last Updated : Nov 03 2016 | 12:47 PM IST
Ministry of New and Renewable Energy (MNRE) issued Guidelines for transparent bidding process for implementation of Scheme for setting up of 1000 MW Wind Power Project connected to inter-state transmission system (ISTS).

As per Guidelines the Wind Power Projects will be selected through open and transparent competitive bidding followed by e-reverse auction and the capacity may go higher than 1000 MW, if there is demand from Buying Entities. The implementing agency SECI has already floated RfS document for selection of bidders under the Scheme.

Discoms of non-windy State and UTs and also the bulk consumers of any State/UTs who intend to buy 10 MW or more can buy wind power under the Scheme.

PTC India, trading company selected by SECI under the scheme, will sign Power Purchase Agreement (PPA) with wind projects at bidded tariff and back-to-back Power Sale Agreement (PSA) with Buying Entities at a pooled price of the total bids selected. The term of PPA and PSA will be 25 years.

Bidder can bid for a minimum capacity of 50 MW and maximum up to 250 MW. The selected bidder is required to injected wind power at ISTS interconnection point. Bidder is allowed to install 5% of additional rated capacity that will compensate auxiliary consumption and system losses up to interconnection point.

Provision relating to pass through of GST impact, part commissioning, efficiency in generation, performance monitoring have also been stipulated in the guidelines.

The Guidelines are available at https://bsmedia.business-standard.commnre.gov.in/file-manager/grid-wind/Scheme-for-Setting-up-of-1000-MW-ISTS-connected-Wind-Power-Projects.pdf

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BACKGROUND

Ministry sanctioned a Scheme for setting up of 1000 MW ISTS connected Wind Power Project on 14 June 2016.

The objective of the Scheme is to encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes. It will also facilitate fulfilment of Non-Solar Renewable Purchase Obligation (RPO) requirement of non-windy states.

In order to facilitate transmission of wind power from these windy states to non-windy states provisions have been made in the Tariff Policy to waive the inter-state transmission charges and losses for wind power projects and Ministry of Power has already issued order in this regard.

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First Published: Nov 03 2016 | 12:15 PM IST

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