Under the present bidding practice, the capacity won by a successful bidder is termed as the "contracted capacity", which is the capacity in AC terms, allocated for supply by that bidder under the power purchase agreement ("PPA"). Along with 'contracted capacity', the PPA also provides for a range of energy supply based on capacity utilisation factor ("CUF"). While the procurer is not obligated to buy energy beyond this range, the developer is liable for penal charges for supply of energy less than the minimum committed energy or minimum committed CUF.
The MNRE has issued the clarification, dated November 5, 2019 with respect to D.C. Capacity of Solar PV Power Plants. The clarifications issued by MNRE are:
- If the solar PV power plant follows the requirements set out in the PPA, the design and installation of solar capacity on the DC side should beleft to the discretion of the developer.
- Even if the installed DC capacity (MWp) is in excess of the value of the contracted AC capacity (MW), it will not amount to a violation of PPA or PSA, as long as the AC capacity of the solar PV power plant set up by the developer is in consonance with the contracted AC capacity, and at no point, the power (MW) scheduled from the solar PV power plant is in excess of the contracted AC capacity, unless there is a specific provision in the PPA restricting such DC capacity.
- Further, the procurer is not obligated to buy any power in excess of the contracted capacity. Additionally, there is a provision of penalty in case of a shortfall in supply of contracted capacity by the developer.
- Since, generation is now a de-licensed activity, therefore, any person is entitled to set up a power plant with any capacity as desired and sell power to any entity which may want to buy it.
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