India wants competitive tariff bidding for thermal projects

All thermal power projects and transmission systems will be awarded on competitive tariff bidding and trading in renewable energy certificate by 2011. This was announced by India's power sector regulator, according to the India Times.

"The ministry of power has agreed to the suggestion of competitive bidding for all thermal power projects to be set up in the country after January 2011 onwards. This will be applicable for all projects whose power purchase agreement would be signed from next January onwards," Central Electricity Regulatory Commission chairman Pramod Deo said.

Deo stated that public sector utilities like NTPC have completed their power purchase agreements for their projects. And that the ministry of power has said it will not extend the deadline."

Deo said the process of trading in renewable energy certificate or RECs will start in two months as registration has commenced with the Power System Operation Corporation Ltd.

"The volume of RECs that would come up for trading is not possible to estimate," he added.
The REC is classified into two categories - solar and non-solar - and will be issued to renewable energy generators.
Power distribution and captive power companies can buy RECs to meet their green power norms.