The guidelines regulate the subsidies for Missionary Electrification Areas (areas not connected to the main grid) and cash incentives for renewable energy developers for Missionary Electrification both financed from the Universal Charge for Missionary Electrification and referred to under the Renewable Energy Act of 2008.
A Competitive Selection Process (CSP) can be organised by Electric Cooperatives (ECs) to select New Power Producers (NPP) for electricity generation in off-grid areas. The bidders are required to ensure compliance by submitting a performance bond (or other form of financial guarantee). The winner is selected on a least cost basis. To test whether the winning bidder’s price is reasonable, the Energy Regulatory Commission may use the national Feed-in-tariff price as a benchmark.
Missionary Electrification Subsidy (ME Subsidy) will be granted to the selected NPPs to allow recovery of the cost of generation.
The policy adopted in this resolution amends the Subsidized Approved Generation Rate Guidelines (SAGR).