Common use of Offtake constraints due to Backdown Clause in Contracts

Offtake constraints due to Backdown. The 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 Power projects. Accordingly, no 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- 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 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: Hours of Backdown during a monthly billing cycle. Generation Compensation = 50% 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 ∑ (Backed down capacity in 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 Article 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 Wind Power Developer Generator and Buying Entity GUVNL shall follow the forecasting and scheduling process as per the regulations in this regard by the Appropriate CommissionGERC. The Government In case the plant is available to supply power but the off take of Indiapower is not done by the Procurer, including non-dispatch of power due to non-compliance with “Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 notified by the Ministry of Power vide Gazette notification dated 3rd June 2022” and any clarifications or amendment thereto, considering the principle of „must run‟ status for RE Power as per the Clause 5.2(u) of the Indian Electricity Grid India Elecricity Gird Code (IEGC), encourages a status of “must-run” to Wind Power projects. Accordingly, no Wind Power plantPlant, duly commissioned, should be directed to back down by a Discom/ DISCOM / 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” and any clarifications or amendment theretoBack down arises, except for the cases where the Backdown Back down 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 WPD Generator shall be eligible for a minimum generation compensationpayment from the Procurer, from Buying Entity, restricted corresponding to the reduced off take, in terms of following and there shall be no other claimmanner Reduced off-take beyond 50 hours in a year, directly or indirectly against SECI: Hours of Backdown during a monthly billing cycle. as defined in the PPA Generation Compensation = 50((Tariff X RE power (MW) offered but not scheduled by Procurer)) X 1000 X No. of hours of Reduced Offtake However, in the case of third-party sale or sale in the power exchange, as price taker, the 95% of [(Average the amount realized, after deducting expenses, shall be adjusted against the Generation during compensation payable, on monthly basis. The generation compensation as calculated above will be limited to the month extent of shortfall in annual generation corresponding to the capacity backed down)] X PPA tariff Wheremaximum CUF permitted as per clause no. 3.1 (iv)(a) and the same will be settled on annual basis. For claiming compensation the generator must sell their power in the power exchange as a price taker.Thus, Average Generation per hour during the month corresponding compensation would be limited to the capacity backed down (kWh) = (CUF during the month) x ∑ (Backed down capacity in 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 difference 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 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 actual generation up to declared capacity subject to a maximum of up to the acceptance contracted capacity and the quantum of the same power scheduled by the respective Buying Utility in the Power Sale Agreementprocurer.

Offtake constraints due to Backdown. The Wind 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 Power solar power projects. Accordingly, no Wind Power solar 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 opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism 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 or other such conditions, subject to the submission of documentary evidences from the competent authority, the WPD SPG shall be eligible for a minimum generation compensationMinimum Generation Compensation, from Buying EntityGRIDOC, restricted to in the following and there shall be no other claim, directly or indirectly against SECImanner detailed below: Hours of Backdown during a monthly billing cycle. Minimum Generation Compensation = 50100% of [(Average Generation per hour during the month corresponding to month) × (number of backdown hours during the capacity backed down)month) × PPA Tariff] X PPA tariff Where, Average Generation per hour during the month corresponding to the capacity backed down (kWh) = Total generation in the month (CUF during kWh) ÷ Total hours of generation in the month) x ∑ (Backed month No back-down capacity in MW x corresponding time / curtailment to be ordered without giving formal/ written instruction for the same. The details of backdown in hours x 1000) back-down / curtailment, including justifications for such curtailment, to be made public by the concerned Sate Load Dispatch Centre. The WPD SPG 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 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 Article 4.10.2 only. It is hereby clarified that for the purpose of Article 4.10, “generation” shall mean scheduled EBC 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 Agreementexport statement.

Offtake constraints due to Backdown. The Wind 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 Power solar power projects. Accordingly, no Wind Power 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 WPD 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: Hours of Backdown during a monthly billing cycle. Generation Compensation = 50100% of [(Average Generation per hour during the month corresponding to month) X (number of backdown hours during the capacity backed downmonth)] 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 the month The Generation Compensation as calculated above will be limited to the extent of shortfall in annual generation corresponding to the maximum CUF during permitted as per Article 2.11.3 and the month) x ∑ (Backed down capacity in MW x corresponding time of backdown in hours x 1000) same will be settled on annual basis. The WPD 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 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 4.10.2 2.13.3 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.