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: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 100% of [(Average Generation 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 (Backed down capacity in MW) x corresponding time of backdown in hours x 1000) 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 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 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 / 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: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 100% of [(Average Generation 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 per hour during the month) x Σ (Backed down capacity in MW) x corresponding time 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 x 1000) 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 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 wind and solar power Wind Power projects. Therefore wind solar hybrid power Accordingly, no Wind 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 WPD 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: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 10050% of [(Average Generation during the month corresponding to the capacity backed down) )] X PPA tariff Where, Average Generation per hour during the month corresponding to the capacity backed down (kWh) = (CUF during the month) x Σ ∑ (Backed down capacity in MW) MW x corresponding time of backdown in hours x 1000) 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 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 4.10.2 only. 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 in the Power Sale Agreement.

Offtake constraints due to Backdown. The Hybrid 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 the wind and solar power projects. Therefore wind solar hybrid power plant, duly commissioned, should never 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 personnel, where it justification should be duly recordedrecorded and be notified to the WPD in writing, the justification of which can be verified by any third party agency, and be notified in writing. No back-down / down, curtailment to shall be ordered without giving formal/ formal/written instruction instructions for the same. The details of back-down / curtailment, including justifications for such curtailment, specifying data to back such curtailment, to should be made public public, including by putting in their website, by the concerned Load Dispatch Centre. In the event of any backing Backing down, except in the HPD cases where the back down is due to grid security or safety of any equipment or personnel or such other conditions, the WPD shall be eligible for a Generation Compensation, from the Procurer, in the manner detailed below and there shall be no other claim, directly or indirectly against SECIbelow: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cycle. Generation Compensation = 10050% of [(Average Generation during the month corresponding to the capacity backed down) )] X PPA tariff Where, Average Generation per hour during the month corresponding to the capacity backed down (kWh) = (CUF during the month) x Σ ∑ (Backed down capacity in MW) MW x corresponding time of backdown in hours x 1000) The Generation Compensation shall as calculated above will be paid limited to the extent of shortfall in annual generation corresponding to the maximum CUF permitted as part of per Article 4.4.1 and the energy xxxx for the successive month after receipt of Regional Energy Accounts (REA)/SEA/JMR. No Trading Margin shall same will be applicable settled on the Generation Compensation as provided in Articleannual basis.

Offtake constraints due to Backdown. The Hybrid Power Developer SPG and Buying Entity GRIDCO shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate CommissionOERC. 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. Therefore wind Accordingly, no solar hybrid power plant, duly commissioned, should never be directed to back down by a Discom/ Load Dispatch Centre (LDC). In case such eventuality of Backdown arises, including 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 the 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, the justification SPG shall be eligible for a Minimum Generation Compensation, from GRIDOC, in the manner detailed below: Duration of which can be verified by any third party agencyBackdown Provision for Generation Compensation 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) × PPA Tariff] Where, and be notified Average Generation per hour during the month (kWh) = Total generation in writing. the month (kWh) ÷ Total hours of generation in the month 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 Sate Load Dispatch Centre. In the event of any backing down, the HPD The SPG shall not be eligible for a Generation Compensation, any compensation in case the manner detailed below and there shall be no Backdown is on account of events like consideration of grid security or safety of any equipment or personnel or other claim, directly or indirectly against SECI: Duration of Backdown Provision for Generation Compensation Hours of Backdown during a monthly billing cyclesuch conditions. Generation Compensation = 100% of [(Average Generation 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 (Backed down capacity in MW) x corresponding time of backdown in hours x 1000) The Generation Compensation shall be paid as part of the energy xxxx bill for the successive month after receipt of Regional Energy Accounts (REA)/SEAas per JMR/JMR. No Trading Margin shall be applicable on the Generation Compensation as provided in ArticleEBC energy export statement.