MoP issues scheme for pooling of tariff of plants whose PPAs have expired

The Ministry of Power (MoP) has issued the scheme for pooling of tariff of those plants whose power purchase agreements (PPAs) have expired.

In view of the long gestation period required for the construction of new thermal capacities and impending retirement of old inefficient thermal plants, it would be prudent to continue to operate the existing efficient thermal capacities of central public sector undertakings whose PPAs have expired, but have remaining operational life, deferring the capital expenditure required for creation of new capacities. Notably, continued operation of gas-based power plants can provide peaking /balancing power for smoother and affordable energy transition towards renewable energy and for resource adequacy. Accordingly, it has been decided to utilise these capacities, and pool power from all central generating stations whose PPAs have expired, and such pooled power will be made available to willing beneficiaries for a duration of a minimum of 5 years. The scheme will be implemented from July 1, 2023.

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