MoP releases guidelines for competitive bidding-based solar power procurement

The MoP has released guidelines regarding the competitive bidding process for the procurement of grid-connected solar power rated 5 MW or above. The guidelines have been issued under Section 63 of the Electricity Act, 2003 for the long-term procurement of electricity. The guidelines aim to enhance transparency and fairness in the procurement process, provide standardisation and uniformity along with a risk-sharing framework among the various stakeholders, supply affordable power in order to reduce offtaker risk and encourage investments, enhance the bankability of projects and improve profitability for investors. The guidelines focus on strict timelines for the completion of land acquisition, transmission connectivity and other approvals; payment security mechanisms; PPA termination compensations; and lender substitution rights.