Power PSUs to get in-principle approval for renewable energy capacity bidding – EQ Mag Pro
There will be no requirement for separate PPAs (Power Purchase Agreements) for renewable energy power projects developed under the flexibility scheme.
New Delhi : The Union power ministry has decided to give in-principle approval at the beginning of a year for the CPSUs under it to bid for pre-determined renewable energy capacities based on their balance sheet strength.
The decision was taken during a meeting chaired by Power Minister R K Singh on an action plan for enhancing the investment by power sector Central Public Sector Undertakings (CPSUs) in renewable energy projects on Tuesday.
“A meeting to discuss the action plan for enhancing the investment by power sector CPSEs in renewable energy projects, was held under the chairmanship of R K Singh, Union Minister of Power & NRE yesterday,” the ministry said in a statement on Wednesday.
Representatives of all hydro CPSUs, NTPC, MNRE (Ministry of New & Renewable Energy) and SECI (Solar Energy Corporation of India) were present at the meeting.
According to the statement, it was decided that in-principle approval would be accorded to CPSUs of the power ministry for bidding of renewable energy power projects at the beginning of a year for a pre-determined capacity based on the strength of their balance sheet.
The matter of enhancing the power of investment approval of the boards of mini ratna CPSUs would be taken up with the Department of Public Enterprises.
The proposal for reducing hurdle rate IRR (Internal Rate of Return) for renewable energy sector from 10 per cent to 8 per cent would be taken up with the finance ministry, as per the statement.
On policy and regulatory issues, it has been decided to allow bundling renewable energy projects with new or untied/high tariff hydro projects to bring down the tariff of hydro power for consumers.
According to the statement, it has been decided to consider the proposal for waiver of transmission charges for renewable energy capacity under flexibility scheme.
There will be no requirement for separate PPAs (Power Purchase Agreements) for renewable energy power projects developed under the flexibility scheme.
Also, separate guidelines would be formulated under Section 63 of The Electricity Act, 2003, for bundling scheme, for setting up renewable energy plant on their own land or a new location.
With respect to allocation under CPSU scheme, the ministry said, “it was deliberated to allocate the offered capacity amongst CPSUs through bidding process in some form on equitable basis”.
The MNRE would examine allowing solar power park developer/ individual promoters to participate in TBCB (Tariff-Based Competitive Bidding) process and a separate policy would be formulated for floating solar by the MNRE, the statement said.
Besides, the MNRE would evolve mechanisms to ensure sanctity of the bidding process and PPA by the state government and for rationalizing high Solar Park charges.
Source : PTI
