Summary:

—

### 1. No NOC Required for Early ESS-Only Sales– **Situation:** BESS is commissioned early; solar/wind RE sources are not yet ready.– **Action:** Developer charges BESS from the **grid** (non-RE power).– **Rule:** No NOC needed from intermediary/end procurer to sell that power in **merchant or third-party markets**.– **Result:** Developers can generate **revenue from BESS immediately** without waiting for RE generation or PPA amendments.

### 2. Right of First Refusal (RoFR) Does Not Apply– The RoFR under **para 14.5 of FDRE SBGs** applies only to **RE power injected from solar/wind components**.– ESS discharging non-RE power is **not RE power** → RoFR is irrelevant.– Attempting to get NOC would create a regulatory anomaly (procurer buying non-RE under an RE PPA).

### 3. Clear Regulatory Boundary| Scenario | NOC Required? | Can sell under PPA? ||———-|—————|———————-|| ESS charged from RE (solar/wind) | Yes | Yes (as RE power) || ESS charged from grid (non-RE) before RE commissioning | **No** | **No** – only merchant/third-party || Mixed charging (RE + grid) | Requires prudence | Partial qualification |

### 4. Applies to Existing & Future Bids/PPAs– This clarification is **retrospective and prospective** – covers all FDRE projects already awarded or yet to be tendered.– Provides **legal certainty** to developers and lenders.

—

### For RE Developers– **Accelerate BESS commissioning** – start earning merchant revenue immediately.– **Avoid lengthy NOC negotiations** with procurers (often delays of months).– **Optimize asset utilization** – charge from low-cost grid power (e.g., off-peak) and sell at peak merchant prices.

### For DISCOMs / Procurers (SECI, NTPC, etc.)– **No obligation to buy non-RE power** – protects their regulatory compliance.– **No risk of forced off-take** of power that doesn’t meet RPO (Renewable Purchase Obligation).

### For Financiers & Investors– **Reduces project cash flow risk** – BESS can generate revenue independently.– **Improves debt servicing ability** during construction/ramp-up phase of RE components.– **Clarity on merchant sale** – no hidden NOC condition in PPAs.

—

– Must **not** represent merchant ESS power as RE power to any stakeholder.– Must maintain separate **metering and accounting** for RE vs. non-RE charged ESS.– FDRE PPA clauses on “Early Commencement” (para 14.5) remain valid **only for RE components**.

—

For more information please see below link:

Download [123.83 KB]

Download [123.83 KB]

Error:Contact form not found.