MNRE’s new solar bidding guidelines elaborate on force majeure events

The Ministry of New and Renewable Energy (MNRE) has amended its guidelines for the competitive bidding process of solar projects. According to the amended guidelines, in case of a force majeure event, the affected party will be excused from performing their obligations as part of the power purchase agreement, provided that the period does not exceed 180 days from the date of issuance of the force majeure notice. The latest amendments also tackle issues regarding payment security mechanism, curtailment of power, acquisition of land and timely tariff adoption.

In September 2019, The MNRE issued guidelines to implement the second phase of the rooftop solar programme. The government set a target to install 100,000 MW of solar power capacity by 2022, of which 40,000 MW is to be achieved from the rooftop solar segment. It approved the second phase of the programme, comprising two main components, in February 2019. Under the first component, 4,000 MW of grid-connected rooftop solar projects will be installed in the residential sector with central financial assistance. Under the second component, incentives will be provided to distribution companies based on their achievements in the initial 18,000 MW of grid-connected rooftop solar plants.

In October 2019, The MNRE issued its draft guidelines for the tariff-based competitive bidding process for the procurement of power from grid-connected wind-solar hybrid projects. The guidelines aim to provide a framework for a bidding process for the procurement of hybrid wind-solar projects. The guidelines have been issued for hybrid projects of at least 5 MW at one site with the minimum bid capacity of 25 MW for intra-state projects; and individual size of at least 50 MW at one site with the minimum bid capacity of 50 MW for inter-state projects.

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