- December 15, 2017
- Posted by: Bicon Consultants
- Category: Ministry of Power - Policy
The Govt. has issued guidelines for procurement of Wind Power under Section 63 of the Electricity Act, 2003 providing a framework for procurement of wind power through a transparent process of bidding including standardization of the process and defining of roles and responsibilities of various stakeholders. These guidelines aim to enable the Distribution Licensees to procure wind power at competitive rates in a cost effective manner.
The guidelines are applicable for procurement of wind power from grid-connected Wind Power Projects having:
(a) individual size of 5 MW and above at one site with minimum bid capacity of 25 MW for intra-state projects; and
(b) individual size of 50 MW and above at one site with minimum bid capacity of 50 MW for inter-state projects.
Key components the guidelines include:
- compensation for grid unavailability and backing-down,
- robust payment security mechanism
- standardization of bidding process
- Risk sharing provisions for various stake holders through various provisions like change in law, force majeure, measures in case of default of procurer as also by generator,
These guidelines will give boost to the wind power sector as it would facilitate the windy States to go for bidding process for procurement of wind power. After transition of tariff regime from feed in tariffs to bidding route, it was mainly central government bids through SECI which were helping the sector. State bids from Tamil Nadu and Gujarat had objections from the wind sector in absence of guidelines.
Please find the guidelines at the following link