Govt issues guidelines for optimum usage of generating stations

The Ministry of Power has issued guidelines for operationalising optimum utilisation of producing stations according to the requirement in the electricity grid.

A ministry directive declared on Friday presented guidelines in this regard.

As per the order of the ministry, it has been notified to the government that some power facilities are not producing to their complete capacity at any given time and the unused capacity remains idle as they are tied up under power purchase agreements.

In public interest, such power requires to be despatched (supplied) where there is a need in the grid by the other users or consumers, it stated.

As per the Tariff Policy, 2016, power stations are needed to be available and ready to dispatch supply at all times.

For optimum usage of un-requisitioned production capacity of any production stations regulated under Section 62 as well as those carrying PPA (power purchase agreement) under Section 63 of the Electricity Act, 2003, the generators have been authorised to trade power in the power market in consonance with laid down policy of the central government.

The guidelines render that where the buyer does not requisition power from the power plant with which he has inked the PPA, up to 24 hours in advance before 00:00 hours of the day of delivery of power, the generator shall be allowed to trade the un-requisitioned power in the power exchange.

It said that where the buyer chooses not to schedule power for any period, either full or part capacity, from the producing station with which it has inked the PPA, which may be over 24 hours in advance, the generator shall be free to trade the un-requisitioned power for the period for which it has not been requisitioned on the power exchange.

The developer and the buyers having the PPA would share the gains realised from the sale, if any, of such unrequisitioned power in power exchange in the ratio of 50:50, if not otherwise presented in the PPA, it provided.

Such gain will be determined as the difference between the selling price of such power and the energy charge rate (ECR) as defined under Section 62 or Section 63 of the Electricity Act, 2003, it said.

The responsibility for the buyers regarding the fixed costs shall remain the same following the PPA, it said.

These terms shall apply both for the power plants whose tariff has been determined under Section 62 or Section 63 of the Electricity Act 2003, it said.

The power plants shall proceed to have duties and obligations to make their plants available according to the provisions of the PPA, it stated.

Image Source

---

Also read: SHAKTI coal auction: Govt revises guidelines to improve coal supply