Updated: July 25, 2019 3:40:41 am
The Ministry of New and Renewable Energy (MNRE) has amended the standard bidding guidelines for wind projects in a move to incentivise projects in this sector. This includes measures to overcome hurdles like delays in acquisition of land by wind power project developers.
“The amendments (are) intended not only to reduce the investment risks related to the land acquisition and CUF (capital utilisation factor), but also to provide incentives for early part commissioning of project. The subjectivity in penalty provisions has been removed and the penalty rate has been fixed,” stated the ministry in a release about the amendments.
“The risk of wind power developers in case of delay in signing of PSA has been mitigated by starting timeline of execution of project from date of signing of PPA or PSA, whichever is later,” it added.
The guidelines for tariff-based competitive bidding process for procurement of power from grid connected wind power projects was notified on December 8, 2017, but consultations with stakeholders and experiences of delays in the bidding process have called for the amendments, according to the ministry.
In the latest amendments, the timeline for land acquisition for wind power projects has been extended to 18 months from seven months. “This will help wind power project developers in states where land acquisition takes longer time,” stated the ministry.
The commissioning schedule of wind power projects have been defined as 18 months from the date of execution of the Power Purchase Agreement (PPA) or Power Selling Agreement (PSA), “whichever is later”.
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