Centre issues guidelines for procurement of wind power through tariff based bidding

The centre has issued guidelines, standardised process and defined roles and responsibilities of various stakeholders, in order to provide a framework for procurement of wind power through a transparent process of bidding.

These guidelines aim at enabling distribution licencees to procure wind power at competitive rates in a cost effective manner, an official release stated.

The guidelines are applicable for procurement of wind power from grid-connected wind power projects (WPP) having individual size of 5 MW and above at one site with minimum bid capacity of 25 MW for intra-state projects and individual size of 50 MW and above at one site with minimum bid capacity of 50 MW for inter-state projects, the ministry of new and renewable energy stated in a release.

The guidelines provide for compensation for grid unavailability and backing-down, a robust payment security mechanism, standardisation of bidding process, risk-sharing framework between various stakeholders through provisions like change in law, force majeure, measures in case of default of procurer as also by generator,  etc.

These guidelines will give a boost to the wind power sector by facilitating the windy states to go for bidding process for procurement of wind power themselves.

After transition of tariff regime from feed-in tariffs to bidding route, it was mainly central government bids through SECI which were helping the sector. Biddings conducted by states like Tamil Nadu and Gujarat faced objections from the wind sector in the absence of guidelines.

In view of very competitive tariffs of Rs2.64 per unit discovered through SECI's second bid and the new guidelines, the wind power sector is poised for a strong growth towards achievement of 60 GW by 2022, according to the ministry.