• MNRE has issued draft guidelines for tariff based competitive bidding for grid connected wind and solar hybrid power projects
  • These guidelines will apply to projects with individual size of 5 MW and above on a single site with a minimum bid capacity of 25 MW for intra-state projects and those with individual size of 50 MW and above with minimum bid capacity of 50 MW for inter-state projects
  • MNRE aims to lay down transparent bidding process, ensure competitive rates for distribution licensees and define roles and responsibilities for various stakeholders through these guidelines
  • Interested stakeholders can submit feedback to the MNRE latest by October 31, 2019

The Indian Ministry of New and Renewable Energy (MNRE) has issued draft guidelines for a tariff based competitive bidding process for grid connected wind and solar hybrid projects. Through these guidelines the ministry aims to set up a framework for a transparent bidding process, define roles and responsibilities of various stakeholders and enable distribution licensees to procure electricity from such hybrid power projects (HPP) at competitive rates.

Eligible projects under the scheme are stated as having an individual size of 5 MW and above on a single site with minimum bid capacity of 25 MW for intra-state projects. The other lot will be projects with individual size of 50 MW and above at a single site with minimum bid capacity of 50 MW for inter-state projects. Storage component may be added to such a hybrid project.

Winners will be selected basis the lowest tariff (L1) quoted and awarded a contract for a period of 25 years.

Last date to submit feedback on these draft guidelines is October 31, 2019.

India first announced its National Wind-Solar Hybrid Policy in May 2018 and updated it with the addition of storage technology in August 2018 (see India Amends Hybrid Wind Solar Policy). The President of India approved the plan to implement 2.5 GW of interstate transmission system (ISTS) connected wind solar HPPs through the Solar Energy Corporation of India to support the National Wind-Solar Hybrid Policy (see India To Procure 2.5 GW Wind-Solar Hybrid Power).

Realizing the benefits of a hybrid co-location of solar and wind power plants, the state of Andhra Pradesh is targeting 5 GW of this capacity under its Wind-Solar Hybrid Power Policy (see New Solar & Hybrid Power Policy In Andhra Pradesh).

SECI manufacturing tender amendment

Meanwhile, SECI has amended its much-awaited solar power tender linked with solar manufacturing, increasing the solar power plant capacity from 6 GW earlier to 7 GW now. It will be connected with 2 GW of manufacturing plant capacity. Bids have been capped at INR 2.93 ($0.041) per kWh increasing from the previous ceiling tariff of INR 2.75 ($0.039) per kWh (see SECI Launches Fresh Manufacturing Linked Tender).

As per the amendment, solar project developers are assured of power purchase agreements (PPA) for up to 2 GW against the 500 MW solar manufacturing plant in bidding Package-A and up to 1.5 GW against 500 MW of solar manufacturing in bidding Package-B.

Hence, under Package-A, a bidder can quote up to 2 GW of project capacity linked to 500 MW of manufacturing corresponding to one project. For Package-B, interested bidders can quote up to 1.5 GW of PV project capacity linked to 500 MW of manufacturing, also corresponding to one project.

The amendments can be viewed on SECI website.