Govt issues guidelines for optimum usage of generating stations
POWER & RENEWABLE ENERGY

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

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

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Panel Urges Zone-Wise Freight Plans and Crew Strengthening

A Parliamentary Standing Committee has urged the Railway Ministry to prepare zone-wise plans to enhance freight traffic in regions with limited mineral movement and industrial activity, according to its ninth report tabled in Parliament on 10 August. The Committee commended efforts to augment network capacity through multitracking, operationalisation of Dedicated Freight Corridors (DFC) and modernisation of yards. It noted that the Ministry has said periodic data-driven assessments are carried out with inputs from Zonal Railways, Divisional Railways and Business Development Units to support po..

Next Story
Infrastructure Urban

Coal India Weighs Buying Wealth Minerals Unit For Chile Lithium

Coal India Limited is evaluating a proposal to acquire the Chilean lithium assets held by the Wealth Minerals unit in Canada as part of a strategic move into battery materials. The company is assessing the asset portfolio, regulatory landscape and integration challenges while retaining coal operations as its core business. The potential interest reflects a shift by a state-owned miner towards minerals critical to the low emission transition. Wealth Minerals, a Canada-based exploration company, holds licences and exploration agreements in Chile that involve hard rock and brine lithium prospects..

Next Story
Infrastructure Energy

Bajel Projects Wins Ultra?Mega Transmission Line Contract

Bajel Projects Limited has secured an Ultra?Mega engineering, procurement and construction order for a transmission line package TL05 from PowerGrid Corporation of India Limited on behalf of its special purpose vehicle. The award forms part of the Western Region–Eastern Region inter?regional network expansion scheme Part A procured under the tariff based competitive bidding route. The contract covers construction of a 765 kV double circuit transmission line. The scope includes bypassing of the Raigarh (Tamnar)–Dharamjaygarh (Sec?B) 765 kV double circuit line and reconfiguration to form the..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement