Guidelines for tariff based competitive bidding process for procurement of power from grid connected solar PV power projects

Promotion of competition in the electricity industry in India is one of the key objectives of the Electricity Act, 2003 (‘Act’). Power purchase costs constitute the largest cost element for distribution licensees. Competitive procurement of electricity by the distribution licensees is expected to reduce the overall cost of procurement of power and facilitate development of power markets. Internationally, competition in wholesale electricity markets has led to reduction in prices of electricity and in significant benefits for consumers. These Guidelines are being issued under the provisions of Section 63 of the Electricity Act, 2003 for long term procurement of electricity by the ‘Procurers’, from grid-connected Solar PV Power Projects (‘Projects’), having size of 5 MW and above, through competitive bidding.