The Ministry of Power, Government of India, has recently issued important amendments to the Guidelines for Tariff-Based Competitive Bidding Process for Power Procurement. These changes were officially communicated on June 25, 2025, by the Director (NRE). The new amendments aim to improve clarity and efficiency in power procurement, especially for grid-connected solar, wind, wind-solar hybrid, and firm and dispatchable power projects with energy storage systems.

The amendments are relevant to a wide group of stakeholders, including the Ministry of New and Renewable Energy (MNRE), Central Electricity Authority, Central and State Electricity Regulatory Commissions, PSUs under the Ministry of Power, SECI, distribution companies (Discoms), generation companies (Gencos), and various industry associations.

One of the key changes is related to Power Sale Agreements (PSAs). A new rule has been added across all project types. If power is being bought through an Intermediary Procurer and the end buyer is a Distribution Licensee, then that Distribution Licensee must apply to the relevant electricity commission for approval of the PSA within 30 days of signing it, in case this approval has not been taken earlier. This change is meant to ensure quicker regulatory approvals for PSAs.

Another important update deals with delays in tariff adoption or PSA approval by the Appropriate Commission. Previously, if a decision was not taken within 60 days of submission or 120 days from the PSA signing date (whichever was more), the project’s Scheduled Commercial Operation Date (SCSD) would be extended by the Procurer. The revised rule now clearly states that the extension will match the number of days delayed beyond these limits, up to the date of final approval. In case of multiple delays, the higher delay—either in tariff adoption or PSA approval—will be used to calculate the extension. This offers greater clarity to developers and helps in planning project timelines.

There are also changes concerning the Performance Bank Guarantee (PBG) requirement. For firm and dispatchable power projects with energy storage systems, wind-solar hybrid, and solar PV projects, the revised rule states that the PBG should be fixed by the Procurer and must not be less than 35% of the estimated project cost for the financial year in which the bids are invited. It may also follow any other criteria mentioned in the Request for Selection (RfS) document. This PBG is to be submitted when the Power Purchase Agreement (PPA) is signed. For wind power projects, the same 35% rule applies, but with an added condition—the amount should not exceed the upper limit set by the Ministry of Finance, whichever is lower. This measure is aimed at ensuring developers have sufficient financial backing and are committed to project execution.

For wind-solar hybrid projects, another change has been made in Clause 5.1 related to Bid Documentation. Procurers are expected to follow the guidelines while preparing bid documents. If they wish to make any changes in the draft RfS, PPA, or PSA that deviate from the guidelines or standard documents, these changes will need approval from the Appropriate Commission. However, if the changes are detailed provisions that are still consistent with the guidelines, they will not be treated as deviations.

These amendments are a part of the government’s continued efforts to make the power procurement process more transparent, efficient, and aligned with the goals of expanding renewable energy in India.