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ARTICLE · 04 SEPTEMBER 2023

Guidelines For Tariff-Based Competitive Bidding Process For Procurement Power From Grid Connected Solar PV Power Projects

On August 02, 2023, Ministry of Power (MoP) introduced the Guidelines to enable procurement of solar power by procurers from grid-connected solar photovoltaic...

IndiaEnergy and Natural Resources
  • On August 02, 2023, Ministry of Power (MoP) introduced the Guidelines to enable procurement of solar power by procurers from grid-connected solar photovoltaic (PV) power projects (Guidelines/2023 Guidelines), with or without energy storage through tariff-based competitive bidding under Section 63 of the Electricity Act with the objectives of:
    • Promoting competitive procurement of electricity from solar PV power plants, by Distribution Licensees.
    • Facilitating solar PV capacity addition and fulfilment of Renewable Purchase Obligation (RPO) and Energy Storage Obligation (ESO) requirement of DISCOMs.
    • Providing a transparent, fair, standardized procurement framework based on open competitive bidding with appropriate risk-sharing between various stakeholders to enable procurement of power at competitive prices in consumer interest, improve bankability of projects and ensure reasonable returns to the investors.

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