Offshore Wind Worldwide 2022 edition - Flipbook - Page 113
Offshore Wind Worldwide 2022
IV. Grid and grid connection
A.Legal framework for the connection
to the onshore grid and the
establishment of the grid connection
In terms of the Offshore Wind Policy, the
CTU and/or STU would be responsible for
undertaking onshore evacuation of
electricity and connection to the electricity
grid. The Offshore Wind Policy also indicates
that the concerned transmission utility/state
government may facilitate allocation of land
onshore proximate to the wind farm site “...
to enable establishments of substations to
evacuate power generated from OWFs.”25
However, the policy is not clear as to the
entity responsible for the construction of the
substation and the allocation of costs in
respect of the same. In the onshore
construct, typically, the responsibility of the
developer is to obtain connectivity with the
transmission system up to the designated
substation at its own cost and to bear the
entire cost of transmission from the project
to the interconnection point. In case of a
pooling substation, losses in transmission
line are apportioned among developers
sharing such pooling arrangement as per
their generation.
B.Consequences of delays
and disruptions of the
grid connection system
Wind power projects are accorded ‘must run’
status and as such are to be compensated by
the offtaker in case of any back down of
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generation requested by the offtaker or load
despatch centre.26 Such compensation would
not only be payable if the back-down has
been requested on account of considerations
of grid security or safety of equipment and
personnel or such other extraneous
conditions. The exclusions from generation
compensation would be articulated in the bid
documents and the PPAs.
C.Onshore grid congestions,
prioritization of renewable
energy resources and
compensation mechanisms
As indicated above, wind power projects
have been accorded ‘must run’ status and as
such would be prioritized over conventional
power. Additionally, various State Electricity
Regulatory Commissions have specified
renewable purchase obligations (RPO) on
distribution utilities stipulating that a
minimum percentage of total consumption
should be derived from renewable sources.
However, note that there is no priority
allocation inter se various renewable power
options and as such it is possible for the RPO
requirements to be fulfilled through
purchase of potentially cheaper sources such
as solar or onshore wind. That being said,
note our responses above on the scheme for
generation compensation in case of backdown and the exclusions to the same.
25 Supra note 9.
26 Ministry of Power, Government of India, Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid
Connected Wind Power Projects (8 December 2017).