News Brief | January 2011
Tariff bidding for thermal power projects soon
From 2011, all thermal power projects and transmission systems will be awarded on competitive tariff bidding and trading in renewable energy certificates (RECs) is set to start. Pramod Deo, Chairman of Central Electricity Regulatory Commission, said that the Ministry of Power has agreed to the suggestion of competitive bidding for all thermal power projects to be set up in the country after January 2011 onwards.
This will be applicable for all those projects whose power purchase agreements (PPAs) are signed from next January onwards. Public sector utilities like NTPC have completed their PPA for their projects. The ministry of power has said that it will not extend the deadline.
He further said that the process of trading in RECs will start in two months as registration has commenced with the Power System Operation Corporation. RECs are classified into two categories solar and non-solar and will be issued to renewable energy generators. Power distribution and captive power companies can buy RECs to meet their green power norms.