Common use of Offtake constraints due to Backdown Clause in Contracts

Offtake constraints due to Backdown. The Solar Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar power projects. Accordingly, no solar power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the month

Offtake constraints due to Backdown. The Solar Wind Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar wind power projects. Accordingly, no solar wind power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD WPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 10050% of [(Average Generation per hour during the month corresponding to the capacity backed down) X PPA tariff] Where, Average Generation during the month corresponding to the capacity backed down (kWh)=(CUF during the month) X (number x ∑(Backed down capacity in MW x corresponding time of backdown in hours during x 1000) The Generation Compensation as calculated above will be limited to the month)] X PPA tariff Where, Average extent of shortfall in annual generation corresponding to the maximum CUF permitted as per Article 2.11.3 and the same will be settled on annual basis. The WPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions. The Generation per hour during Compensation shall be paid as part of the energy xxxx for the successive month after receipt of Energy Accounts (kWh) = Total generation REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in the month (kWh) ÷ Total hours of generation in the monthArticle 2.13.3 only.

Offtake constraints due to Backdown. The Solar Power Developer HPD and the Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a provides for status of “must-run” to wind and solar power projects. Accordingly, no wind-solar hybrid power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the case such eventuality of backdownBackdown arises, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject the Buying Entity shall pay to the submission of documentary evidences HPD, a Minimum Generation Compensation, from the competent authorityProcurer, in the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECImanner detailed below: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] ) X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ kWh)÷ Total hours of generation in the month

Offtake constraints due to Backdown. The Solar Power Developer Governments encourages status of 'must- run' to wind and Buying Entity shall follow the forecasting and scheduling process as per the regulations solar power projects, which is reflected both in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC)) as well as State Grid Codes /Regulations. Therefore, encourages a status of “must-run” to solar power the wind projects. Accordingly, no solar power plant, duly commissioned, should not be directed to back down by a Discom/ DISCOM, Load Dispatch Centre (LDC)) except for reasons of grid security or safety of any equipment or personnel, where justification should be duly recorded and be notified to the WPD in writing, which can be verified by any third party agency. No back-down, curtailment shall be ordered without giving formal/written instructions for the same. The details of back-down / curtailment, including justifications for such curtailment, specifying data to back such curtailment, should be made public, including by putting in their website, by the concerned Load Dispatch Centre. In the eventuality event of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment theretoBacking down, except for in the cases where the Backdown back down is on account of events like consideration of due to grid security or safety of any equipment or personnel or such other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD WPD shall be eligible for a minimum generation compensationGeneration Compensation, from Buying Entitythe Procurer, restricted to in the following and there shall be no other claim, directly or indirectly against SECImanner detailed below: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 10050% of [(Average Generation per hour during the month) X (number of backdown hours during month corresponding to the monthcapacity backed down)] X PPA tariff Where, Average Generation per hour during the month corresponding to the capacity backed down (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in CUF during the month) x ∑ (Backed down capacity in MW x corresponding time of backdown in hours x 1000)

Offtake constraints due to Backdown. The Solar Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar power projects. Accordingly, no solar power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the monthmonth The SPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions. The Generation Compensation shall be paid as part of the energy xxxx for the successive month after receipt of Energy Accounts (REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in Article 2.13.3 only.

Offtake constraints due to Backdown. The Solar Hybrid Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to wind and solar power projects. AccordinglyTherefore, no wind solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authoritywhere it should be duly recorded, the SPD justification of which can be verified by any third-party agency, and be notified in writing. No back-down / curtailment to be ordered without giving formal/ written instruction for the same. The details of back-down / curtailment, including justifications for such curtailment, specifying data to back such curtailment, to be made public by the concerned Load Dispatch Centre. In the event of any backing down, the HPD shall be eligible for a minimum generation compensationGeneration Compensation, from Buying Entity, restricted to in the following manner detailed below and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] ) X PPA tariff tariff] Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the monthmonth The Generation Compensation shall be paid as part of the energy xxxx for the successive month after receipt of Regional Energy Accounts (REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in Article

Offtake constraints due to Backdown. The Solar Wind Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar wind power projects. Accordingly, no solar wind power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD WPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 10050% of [(Average Generation per hour during the month corresponding to the capacity backed down) X PPA tariff] Where, Average Generation during the month corresponding to the capacity backed down (kWh)=(CUF during the month) X (number x ∑(Backed down capacity in MW x corresponding time of backdown in hours during x 1000) The Generation Compensation as calculated above will be limited to the month)] X PPA tariff Where, Average extent of shortfall in annual generation corresponding to the maximum CUF permitted as per Article 2.11.3 and the same will be settled on annual basis. The WPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions. The Generation per hour during Compensation shall be paid as part of the energy bill for the successive month after receipt of Energy Accounts (kWh) = Total generation REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in the month (kWh) ÷ Total hours of generation in the monthArticle 2.13.3 only.

Offtake constraints due to Backdown. The Solar Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar power projects. Accordingly, no solar power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the monthmonth The Generation Compensation as calculated above will be limited to the extent of shortfall in annual generation corresponding to the maximum CUF permitted as per Article 2.11.3 and the same will be settled on annual basis. The SPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions. The Generation Compensation shall be paid as part of the energy xxxx for the successive month after receipt of Energy Accounts (REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in Article 2.13.3 only.

Offtake constraints due to Backdown. The Solar Power Developer and Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a status of “must-run” to solar power projects. Accordingly, no solar power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- 23/22/2019-R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the monthmonth The Generation Compensation as calculated above will be limited to the extent of shortfall in annual generation corresponding to the maximum CUF permitted as per Article 2.11.3 and the same will be settled on annual basis. The SPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions. The Generation Compensation shall be paid as part of the energy bill for the successive month after receipt of Energy Accounts (REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in Article 2.13.3 only.

Offtake constraints due to Backdown. The Solar Power Developer HPD and the Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of the Indian Electricity Grid Code (IEGC), encourages a provides for status of “must-run” to wind and solar power projects. Accordingly, no wind-solar hybrid power plant, duly commissioned, should be directed to back down by a Discom/ Load Dispatch Centre (LDC). In the case such eventuality of backdownBackdown arises, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject the Buying Entity shall pay to the submission of documentary evidences HPD, a Minimum Generation Compensation, from the competent authorityProcurer, in the SPD shall be eligible for a minimum generation compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECImanner detailed below: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the monthmonth corresponding to the capacity backed down) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month corresponding to the capacity backed down (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in CUF during the month) x Σ (Backed down capacity in MW) x corresponding time of backdown in hours x 1000)

Offtake constraints due to Backdown. (a) The Solar Power Developer and the Buying Entity shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate Commission. The Government of India, as per Clause 5.2(u) of asperClause5.2(u)of the Indian Electricity Grid Code (IEGC), encourages a IEGC)provides for status of “must-run” to solar power projects. Accordingly, no solar power plant, duly commissioned, should be directed to back down by a Discom/ STU (MSETCL)/ Load Dispatch Centre (LDC). In the case such eventuality of backdown, including backdown on account of non-dispatch of power due to non-compliance with “Order No. 23/22/2019- R&R dated 28.06.2019 of Ministry of Power regarding Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees” Backdown arises and any clarifications or amendment thereto, except for the cases where the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions, subject to the submission of documentary evidences from the competent authority, the SPD Solar Power Developer shall be eligible for a minimum generation compensationMinimum Generation Compensation, from Buying Entity, restricted to the following and there shall be no other claim, directly or indirectly against SECIagainstNODAL RAILWAY: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation per hour during the month) X (number of backdown hours during the month)] X PPA tariff Where, Average Generation per hour during the month (kWh) = Total generation in the month (kWh) ÷ Total hours of generation in the monthmonth The SPD shall not be eligible for any compensation in case the Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other such conditions.