Common use of Offtake constraints due to Backdown Clause in Contracts

Offtake constraints due to Backdown. The 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. Therefore, wind solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC) except grid security or safety of any equipment or personnel where it should be duly recorded, the 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 Generation Compensation, in the manner detailed below and there shall be no other claim, directly or indirectly against SECI: Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% of [(Average Generation per hour during the month) (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 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 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. Therefore, wind solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC) except grid security or safety of any equipment or personnel where it should be duly recorded, the 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 Generation Compensation, in the manner detailed below and there shall be no other claim, directly or indirectly against SECI: Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% of [(Average Generation per hour during the month) (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 The Generation Compensation shall be paid as part of the energy xxxx bill 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 Hybrid 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 wind and solar power projects. ThereforeAccordingly, wind no 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 where it should be duly recordedor other such conditions, subject to the submission of documentary evidences from the competent authority, the 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 SPD shall be eligible for a Generation Compensationminimum generation compensation, in from Buying Entity, restricted to the manner detailed below following and there shall be no other claim, directly or indirectly against SECI: 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 month 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 Regional Energy Accounts (REA)/SEA/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in ArticleArticle 2.13.3 only.

Offtake constraints due to Backdown. The Hybrid Power Developer HPD and Buying Entity RUVNL 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. Therefore, wind solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC) except grid security or safety of any equipment or personnel where it should be duly recorded, the justification of which can be verified by any third-party agency, and be notified in writing. No back-down / down/ curtailment to be ordered without giving formal/ formal/written instruction for the same. The details of back-down / 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 Generation Compensation, in the manner detailed below and there shall be no other claim, directly or indirectly against SECIRUVNL: 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) ÷ Total hours of generation in the month The Generation Compensation shall be paid as part of the energy xxxx bill for the successive month after receipt of Regional Energy Accounts (REA)/SEA/JMR. No Trading Margin It is hereby clarified that for the purpose of Article 4.10, “generation” shall mean scheduled energy based on Energy Accounts. Notwithstanding anything mentioned above, the provisions of Article 4.10 shall be applicable subject to the acceptance of the same by the respective Buying Utility. No compensation shall be payable, however, if the backdown/ curtailment is on account of considerations of grid security/ safety. Such a backdown will be recorded and reported to RLDC/ NLDC. RLDC/ NLDC will examine the Generation Compensation as provided in Articleissue of grid safety/ security and give a finding that the issue of grid safety existed.

Offtake constraints due to Backdown. The 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. Therefore, Therefore wind solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC) except grid security or safety of any equipment or personnel where it should be duly recorded, the justification of which can be verified by any third-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 Generation Compensation, in the manner detailed below and there shall be no other claim, directly or indirectly against SECI: Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% 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 Σ (number Backed down capacity in MW) x corresponding time of backdown in hours during the monthx 1000) 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 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. (a) The Hybrid 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 wind and solar power projects. ThereforeAccordingly, wind no solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ STU (MSETCL)/ Load Dispatch Centre (LDC) ). In case such eventuality of 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 where it should be duly recordedor other such conditions, the 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 Solar Power Developer shall be eligible for a Minimum Generation Compensation, in from Buying Entity, restricted to the manner detailed below following and there shall be no other claim, directly or indirectly against SECIagainstNODAL RAILWAY: 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 month 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. (b) 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. It is hereby clarified that for the purpose of Article 4.10, “generation” shall mean scheduled energy based on Energy Accounts. (c) No Trading Margin shall back-down / curtailment to be applicable on ordered without giving formal / written instruction for the Generation Compensation as provided in Articlesame. (d) The details of back-down / curtailment, including justifications for such curtailment, to be made public by the concerned Load Dispatch Centre / STU (MSETCL).