Govt allows flexibility in selection of power supplies under RTC bids
With the aim to drive bids for round-the-clock (RTC) power supply, the Ministry of Power has amended the guidelines for tariff-based competitive bidding for power procurement from such projects, allowing them bundling with any non-renewable source of energy rather than just coal-based thermal projects.
The earlier guidelines for bundled projects required a bidder to place tariff bids after allowing power generated from renewable resource and via based thermal power projects.
With the changes in guidelines, a bidder for a RTC tender can quote tariff by bundling power from renewable and any other non-renewable resource such as thermal and hydro, including power from energy storage systems.
The measure is expected to give more flexibility to generators while placing bids for RTC. However, under the amended guidelines, bundling will be allowed only with one non-renewable resource and not multiple resources.
Also, the amended regulations have made stricter provisions for penalty if a power generator is unable to meet commitments on power supply. The regulations provide that the generator maintain minimum power supply of 85 per cent annually and if it falters, it would have to pay a hefty penalty equivalent to 400 per cent of the cost of power they fell short of. The penalty level earlier was 25 per cent.
The penalty will be higher at 400 per cent even for any shortfall in supply of committed level of renewable power.