The Ministry of Power has released draft amendments to its comprehensive guidelines for the Tariff Based Competitive Bidding (TBCB) Process, impacting the procurement of power from various grid-connected renewable energy projects. These include Solar Power, Wind Power, Wind Solar Hybrid Projects, and Firm and Dispatchable Power from Renewable Energy Projects with Energy Storage Systems.
The proposed amendments primarily focus on streamlining regulatory approvals, providing relief for delays caused by regulatory bodies, and revising performance guarantee requirements. The Ministry has invited comments from stakeholders on these draft changes by July 9, 2025.
Key Amendments Across Project Categories:
The proposed modifications, while contained in separate resolutions for different renewable energy categories, introduce consistent changes across the bidding guidelines:
Streamlined Power Sale Agreement (PSA) Approvals:
A new proviso has been added (e.g., under Clause 11.4/12.4 of respective guidelines) stipulating that if power is procured through an Intermediary Procurer and the ultimate buyer is a Distribution Licensee, the Distribution Licensee must approach the Appropriate Commission for PSA approval under Section 86 (1) (b) within 30 days from the date of signing the PSA, especially if prior approval has not been obtained.
Extension for Regulatory Delays in SCSD:
Crucially, modifications to clauses (e.g., 11.5/12.5) now mandate that if the Appropriate Commission fails to decide upon the adoption of tariffs (under Section 63 of the Electricity Act) or the approval of PSA within 120 days from the date of submission of a complete application, the Procurer(s) shall grant an appropriate extension of time in the Scheduled Commercial Operation Date (SCSD) to the generator(s). This extension will correspond to the delay incurred beyond the 120-day period, with the higher of the delays (for tariff adoption or PSA approval) being considered.
Revised Performance Bank Guarantee (PBG) Requirements
The minimum Performance Bank Guarantee (PBG) has been reduced across various project types. For example, for Firm and Dispatchable Power from RE Projects with Energy Storage Systems, Wind Solar Hybrid Projects, and Wind Power Projects, the PBG to be submitted at the time of signing the Power Purchase Agreement (PPA) has been fixed at 3% (Three percent) of the estimated RE Project cost or estimated capital cost, respectively, for the financial year in which bids are invited, or any other criteria specified in the RfS. This marks a reduction from previous requirements (e.g., from 5%).
Specific Amendment for Wind Solar Hybrid Projects
Additionally, for Wind Solar Hybrid Projects (under Clause 5.1 “Bid Documentation”), the guidelines clarify that while the Procurer must prepare bid documents in accordance with the guidelines, detailed provisions in draft RfS, PPA, and PSA that are consistent with the guidelines will not be considered deviations. However, any actual deviations from the guidelines or Standard Bidding Documents (SBDs) will still require approval from the Appropriate Commission.
The Ministry of Power has directed that comments on these draft amendments be sent via email to nre.section-mop@gov.in. Stakeholders are urged to provide their feedback by the stipulated deadline of July 9, 2025, to contribute to the finalization of these important regulatory changes aimed at fostering a more efficient and supportive environment for renewable energy development in India.
