Performance Generation Guarantee Sample Clauses

Performance Generation Guarantee. The Minimum CUF which the solar power provider will have to provide during first year of operations will not be the lower than 15% or the Normative CUF provided by the State Tariff Order. The maximum Deration in generation allowed over the first ten years of operation is 10% (annual deration to be carried out on a written down method basis) and over the life of the project is 20% Post COD and upon satisfactory commissioning and normal operation of the solar rooftop project for 3 months, Railways shall return the Performance Guarantee for Construction Period and in exchange of that retain a Performance Guarantee for generation of Rs. 5 lakh per MW. The Performance Guarantee for generation shall remain in force and effect for an initial period of 3 (three) years. Railways shall release the Performance guarantee forthwith upon expiry of the aforesaid; provided however, that the Performance Guarantee shall not be released if the SPD is in breach of this Agreement. The Performance Guarantee will come into effect if for any contract year, it is found that the SPD has not been able to generate minimum energy as outlined in the Minimum CUF, on account of reasons solely attributed to the SPD, such shortfall in performance shall make SPD liable to pay a compensation equivalent to the higher of the following: • shortfall in generation vis a vis Minimum CUF multiplied by Tariff agreed in this agreement. • the penalty accruing to Railways for not being able to meet its Renewable Purchase Obligation/ cost incurred for buying the shortfall in RE through RECs and the cost incurred by Railways for procuring an equivalent amount of energy from the distribution utility.