In a major development, Rajasthan Energy Regulatory Commission (RERC) has approved the deviations from Union Ministry of Power's guidelines on buying Firm and Dispatchable Renewable Energy (FDRE) from grid connected renewable energy project with energy storage system.
This will pave the way for proposed tender of 2450 MW Solar plus 1600MW/6400 MWh BESS at Pugal Solar Park, Rajasthan. The power generated in this park will be purchased by Discoms through 25-year Power Purchase Agreement with Rajasthan Urja Vikas and IT Services Limited (RUVITL).
“Deviations are intended to ensure better grid discipline, reliable peak hour power supply, optimum utilization of energy storage systems, and long-term sustainability and competitive tariff under the FDRE framework.
Rajasthan Renewable Energy Corporation (RREC) through its wholly owned subsidiary Rajasthan Solar Park Development Company Limited (RSPDCL), has sought 10-point deviations for long term sustainability and reliability of power at competitive rates.
“Deviations sought by RSPDCL were placed with well thought rationale. Each point was strongly put. For the first time we have seen such a strong push for reforms in renewable energy sector. RREC team has done a strong homework with utmost detailing,” said a senior official of RERC.
The energy regulator has approved all the deviations including increase in penalty on developers of they fail to meet the commitment in supply power during peak hours.
However, on the issue of RREC's proposal to increase the minimum quantum of of power offered from 50 MW to 250 MW in Lot 1 and 225 MW in Lot 2 with proportionate BESS, the regulator directed RREC to consult with power purchaser (Discoms in this case) to study if competitiveness and discovered tariff are adversely impacted as compared to 50 MW Lot as mentioned in Standard Bidding Guidelines.
“If required, they may reduce the minimum Lot size at their level. If they reach the conclusion that the minimum lot size is required as per their submission (i.e., 250 MW for Lot-1 and 225 MW for Lot-2 with associated storage) and same is not adversely impacting the Competitiveness and tariff, the petitioner may proceed further for procurement. Even in that case, the RREC should ensure wide publicity of the tender,” the energy regulator directed.
Why RREC batted for increase in Lot size?
RSPDCL argued that park's internal plot sizing is planned such that each plot has a capacity of 250 MW/225 MW.
“Permitting smaller bid capacities would cause fragmentation, coordination complexity, and infrastructure inefficiency while higher minimum capacities ensure participation of financially and technically sound developers, optimising land and transmission infrastructure utilisation. Fragmentation of the project into 50 MW lots would not serve the integrated nature,” the developer argued.
Developer to vacate park on expiry of PPA at its own cost
Provisions of MoP stipulates that developer shall be free to operate their plants after expiry of the PPA period. The developer may upgrade and repower their plants during the PPA period at its own risk and cost; and participate in subsequent bids to the extent of their untied capacity it.
As per the deviation approved, developers shall have to dismantle and vacate the park at its sole cost and risk after expiry of PPA unless through mutual agreement between the power purchaser, RSPDCL and developer justify the case which has to be finally approved by RERC.
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