CoalMin rejects PowerMin plea to allow medium, short-term
PPAs
01/07/2014 15:48
The coal ministry has rejected the power ministry's plea to allow medium- and short-term electricity purchase agreements to secure fuel linkages. Power purchase agreements (PPA) are contracts between generators of electricity and their buyers that need to be signed before coal supplies can be allotted for projects. "Coal companies do not recognise medium-term and short-term PPAs for coal supplies. MoP (Ministry of Power) has taken up this issue with MoC (Ministry of Coal) several times with detailed justification for allowing medium-term PPAs for coal supplies," according to an official document. "However, MOC has not agreed to the issue so far," according to the document. Long-term PPAs range from seven years to 25 years, medium term PPAs from one to seven years and short-term PPAs are from one month to one year. Coal India (CIL) tweaked the model fuel supply agreement for new private power plants in April, allowing them to revise the annual contracted quantity once in a quarter by amending or supplementing the PPA if they were able to procure additional long-term power purchases.
01/07/2014 15:48
The coal ministry has rejected the power ministry's plea to allow medium- and short-term electricity purchase agreements to secure fuel linkages. Power purchase agreements (PPA) are contracts between generators of electricity and their buyers that need to be signed before coal supplies can be allotted for projects. "Coal companies do not recognise medium-term and short-term PPAs for coal supplies. MoP (Ministry of Power) has taken up this issue with MoC (Ministry of Coal) several times with detailed justification for allowing medium-term PPAs for coal supplies," according to an official document. "However, MOC has not agreed to the issue so far," according to the document. Long-term PPAs range from seven years to 25 years, medium term PPAs from one to seven years and short-term PPAs are from one month to one year. Coal India (CIL) tweaked the model fuel supply agreement for new private power plants in April, allowing them to revise the annual contracted quantity once in a quarter by amending or supplementing the PPA if they were able to procure additional long-term power purchases.
