Scheme for Setting up of 2000 MW ISTS-connected Wind Power Projects

Bidding was introduced in the wind energy sector during the year 2016-17 and first wind power auction for 1000 MW capacity was successfully concluded by SECI with a price of Rs. 3.46 per unit of wind power. After success of first wind power auction, another 1000 MW capacity was auctioned on 4th October 2017 with price discovery of Rs. 2.64 per unit. Wind power auction scheme of ministry was well received by wind industry and the Discoms of non-windy States.

It is seen that after discovery of competitive price Discoms are encouraged to purchase wind power to comply non-solar RPO. In order to facilitate the purchase of wind power at a tariff discovered through competitive bidding process, MNRE has issued scheme for setting up of 2000 MW Wind Power Projects connected to Inter-state Transmission System (ISTS), through Solar Energy Corporation of India (SECI). Important features of the Scheme are as under:

i. The objectives of the Scheme are to:

  • facilitate fulfillment of non-solar RPO requirement of Discoms of non-windy States through supply of wind power at a price discovered through transparent bidding process; and
  • encourage competitiveness in wind power sector through transparent e-bidding followed by e-reverse auction.

ii. Capacity under the Scheme: The Scheme will be implemented for setting-up 2000 MW capacity Inter-State Transmission System (ISTS) connected wind power projects by Wind Project Developers on build, own and operate basis.

iii. The arrangement for implementation of the Scheme shall be as under

  • SECI will be the nodal agency for implementation of the scheme.
  • The selection of wind power projects under the Scheme will be through a transparent and competitive e-bidding process for eligible bidders followed by e-reverse auction.
  • Eligible bid capacity for bidding will be minimum 50 MW and maximum 400 MW by a bidder.
  • Discoms of non-windy States that requires wind power to fulfill their non-solar RPO under respective RPO regulations will be eligible to buy wind power under the Scheme.
  • Request for Selection (RfS) document for the bidding under the Scheme will be issued by the SECI within a period often days from the date of issue of sanction of the Scheme.
  • SECI shall sign Power Purchase Agreement (PPA) with selected bidders at tariff discovered through reverse auction and also back-to-back PSA with buyers at a pooled price of the total capacity allotted.
  • The duration of PPA and PSA will be 25 years from the date of commercial operation of the project.
  • SECI will be entitled to charge trading margin as mutually agreed with buyer or as decided by the CERC for long-term power purchases, whichever is less.
  • The bidders may avail fiscal and financial incentives available for such projects as per prevailing conditions and rules.
  • No separate Central Financial Assistance is envisaged for implementation of the Scheme.

iV The Guidelines for transparent bidding process for implementation of the Scheme are attached as Annexure.

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V. Role of SECI: SECI shall execute the bidding process through issue the RfS document inviting bidders to submit the bids quoting tariff for 25 years for sale of power from the Wind Power Projects they propose to set-up at specified locations through e-bidding followed by e-reverse auction.

SECI shall market the scheme with utilities of non windy states so that entire capacity of the scheme is utilized.

SECI shall also sign PPA with selected bidders at tariff discovered through reverse auction and also back-to-back PSA with buyers at a pooled price of the total capacity allotted.

SECI shall monitor the execution of the contract, so that wind power plants are set up as per defined timelines.

In addition, SECI shall develop a suitable mechanism for continuous online monitoring the performance of the projects through data transfer.

Vi. Role of State Nodal Agencies (SNAs): The State Nodal Agencies will provide necessary support to facilitate the required approvals and Sanctions in a time bound manner so as to achieve commissioning of the Projects within the scheduled timeline.

Vii. Power to remove Difficulties: If any difficulty arises in giving effect to any provision or interpretation of the Scheme or there is a requirement to modify/change the provisions of the Scheme, MNRE will be competent to make such arrangements with approval of Minister in-charge.

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