The Ministry of New and Renewable Energy (MNRE) has issued a memorandum clarifying the non-requirement of no-objection certificates from the intermediatory procurer/buying entity/end procurer in existing and future bids or power purchase agreements (PPAs) under firm and despatchable renewable energy (FDRE) bidding guidelines when an energy storage system (ESS) is charged using non-renewable power.
According to the MNRE, ESS are categorised as storage components and not renewable energy generating sources. Furthermore, power discharged from an ESS that is charged using non-renewable sources does not qualify as renewable energy under the applicable guidelines.
Additionally, the MNRE has reviewed provisions under the tariff-based competitive bidding framework for the procurement of FDRE. It has been noted that developers are allowed early commencement of supply from individual project components outside the ambit of the power purchase agreement. In such cases, developers are required to provide a 15-day advance notice to end procurers and intermediary procurers. Moreover, the MNRE has clarified that the right of first refusal by end procurers or intermediary procurers applies only to renewable energy generated from commissioned solar or wind projects.