BUSINESS

Centre issues bid guidelines for procuring wind power

Aims to prod windy States to opt for bidding process

The government on Tuesday issued guidelines for the procurement of wind power through a bidding process, which included the standardisation of the process and a definition of the roles and responsibilities of various stakeholders.

“The guidelines are applicable for procurement of wind power from grid-connected wind power projects (WPP) having- (a) individual size of 5 MW and above at one site with minimum bid capacity of 25 MW for intra-state projects; and (b) individual size of 50 MW and above at one site with minimum bid capacity of 50 MW for inter-state projects,” the Centre said in a release.

The guidelines include provisions for compensation in case of grid unavailability, put out a payment security mechanism, standardise the bidding process, and spell out the risk-sharing framework among stakeholders.

‘Good for developers’

“The payment security approved in the new bidding guidelines has not been seen in PPAs [power purchase agreements] signed by the state distribution utilities [discoms] with wind power developers in the past,” Sabyasachi Majumdar, senior VP & group head, ICRA Ratings said in a note, flagging the development as favourable for developers while improving the bankability of the PPA document.

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