Govt issues guidelines for optimum utilisation of power generation capacity

Ministry of Power on Friday issued guidelines for operationalising optimum utilisation of generating stations as per the requirement in the electricity grid.

A ministry directive issued on Friday provided guidelines in this regard.

According to the order of the ministry, it has been brought to the notice of the government that some power plants are not generating to their full capacity at any given time and the unutilised capacity remains idle as they are tied up under power purchase agreements.

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

According to the Tariff Policy, 2016, power stations are required to be available and ready to dispatch supply at all times.

For optimum utilisation of un-requisitioned generation capacity of any generating stations regulated under Section 62 as well as those having PPA (power purchase agreement) under Section 63 of the Electricity Act, 2003, the generators have been permitted to sell power in the power market in consonance with laid down policy of the central government.

Keeping these factors in view and after careful consideration, the government hereby issues the guidelines in accordance with the aforesaid provisions of the Tariff Policy, 2016, it stated.

The guidelines provide that where the procurer does not requisition power from the power plant with which he has signed the PPA, up to 24 hours in advance prior to 00:00 hrs of the day of delivery of power, the generator shall be free to sell the un-requisitioned power in the power exchange.

Besides, it provided that where the procurer decides not to schedule power for any period, either full or part capacity, from the generating station with which it has signed the PPA, which may be more than 24 hours in advance, the generator shall be free to sell the un-requisitioned power for the period for which it has not been requisitioned on the power exchange.

The developer and the procurers 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 provided in the PPA, it provided.

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

The obligation for the procurer with regard to the fixed charges shall remain the same in accordance with the PPA, it said.

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

The power plants shall continue to have obligations and duties to make their plants available as per the terms of the PPA, it stated.