The Ministry of New & Renewable Energy (MNRE) today said its standards for toll based bidding for procuring solar power would reduce danger, improve openness and boost price. <br /> <br />The MNRE had provided the brand-new guidelines for toll based affordable bidding procedure on August 3. <br /> <br />The guidelines have been provided under the arrangements of Section 63 of the Electricity Act, 2003 for long-term purchase from grid-connected Solar PV Power Projects of 5 MW and above, via affordable bidding. <br /> <br />" New Guidelines for Tariff Based Competitive Bidding Process to decrease danger, improve openness as well as rise cost of Solar Power," the ministry claimed in a statement. <br /> <br />Besides, it stated, the action will certainly help protect consumer passions with budget friendly power. <br /> <br />It will also supply standardisation and harmony in processes and also a risk-sharing framework in between different stakeholders associated with the solar PV power purchase, it claimed. <br /> <br />This will also help in reducing off-taker danger as well as motivate financial investments, boost bankability of the Projects and boost productivity for the investors, it included. <br /> <br />A few of the salient attributes of the brand-new standards include generation payment for offtake restraints for reducing offtake dangers <br /> <br />The 'must-run' standing for solar jobs has actually been worried upon. <br /> <br />To guarantee lower tolls, minimum PPA (power purchase arrangement) period has actually been maintained at 25 years. Furthermore independent discontinuation or amendment of PPA is not allowed. <br /> <br />The guidelines likewise improve the stipulation for task preparedness to speed up and assist in the establishing up of tasks. <br /> <br />Better, they provides for termination settlement to raise bankability of tasks by protecting the investment by the generator and the loan providers against any arbitrary discontinuation of PPA. <br /> <br />Under the norms, the risk of generator's earnings obtaining blocked due to delayed payment/non-payment by the procurers has been dealt with through arrangement of Payment Security Mechanism with tools like Letter of Credit (LC), Payment Security Fund and State Guarantee. <br /> <br />It likewise attends to modification in regulation provision to offer clearness and also assurance to generators, procurers, and also investors/lenders. <br /> <br />The charges have actually been rationalized so as to decrease the overall cost to the generator, while at the exact same time, guaranteeing compliance with the Commissioning Schedule/Scheme Guidelines. The standards give that generators are cost-free to repower their plants. <br /> <br />Know more about it at http://www.zoltenergy.com
