Mnre Issue Draft Guidelines For 3 Gw Grid Connected Solar Pv Projects

MNRE has recently released the Draft Guidelines for Selection of 3000 MW Grid Connected Solar PV Power Projects under Batch-II Tranche-I "State Specific Bundling Scheme".The Project will be implemented by NVVN (NTPC Vidyut Vyapar Nigam Limited). MNRE is facilitating development of 25 Solar Parks to accelerate the Solar Capacity Addition in various States. The bidder will approach the Solar Park Implementation Agency (SPIA) for allotment of land and connectivity. The SPIA will provide the Cost of Land, Annual Charges, and Connectivity Charges etc. which the developer would take into consideration in their bid. HOW IT IS GOING TO OPERATE?The 3 GW Solar PV Capacity under Tranche-I will be set up based on the model of bundling of solar power with unallocated thermal power and fixed levellised tariffs.The mechanism of operation of this model:1) Minimum project size will be 10 MW.2) The bidding will be State specific and conducted through e-bidding. The developers will submit bids quoting a fixed levellised tariff for the entire project duration of 25 years.3) Selection of bid will be based on lowest quoted levellised tariffs. The quoted tariff cannot be higher than the Central Electricity Regulatory Commission (CERC) Approved Applicable Tariff as on the last date of receipt of financial bids by NVVN.4) The bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Customs and Excise Duties, Tax Holidays, etc. as available for such projects.5) NVVN will bundle the Solar Power with unallocated Thermal Power from Coal based stations of NTPC on 2:1 basis (2 MW of Solar with 1 MW of Thermal), and sell the Bundled Power to willing State Utilities under 25 years Power Sale Agreements (PSAs), at Weighted Average Tariff of the Solar and Thermal components plus Trading Margin of Paisa Seven (7) per kWh. SOLAR PV TECHNOLOGY PROJECTS MNRE will fix the lot size for each state out of the 3000 MW and define the quantum of "DCR" in each lot. Thereafter, NVVN will issue Request for Selection (RfS) in one or more than one Lot as per the preparedness in the Solar Park in that State and acceptance of the State/ Discom to buy the power. This scheme provides for deployment of only Solar PV Technology Projects. However, the selection of projects would be technology agnostic and crystalline silicon or thin film or CPV, with or without trackers can be installed. Some other IMPORTANT POINTS in the Draft are as follows: 1) The project will be on B-O-O (Build Own Operate) basis.2) Non-refundable processing fees to be submitted for each Project- Rs. 2 Lakh upto 20 MW capacity and Rs. 3 Lakh above 20 MW capacity.3) Financially, the Net Worth of the Company indicated by audited annual accounts of the company, should be equal to or greater than the value calculated at the rate of Rs 1.5 Crores or equivalent US per MW of the project capacity.4) The Solar Power Plant shall be designed for inter-connection with the Pooling Substation at the Solar Park or STU / CTU substation as applicable through dedicated transmission line / cable at voltage level of 33 kV and above. Solar Park implementation agency will provide inter connection facility close to the park at voltage which will be specified. The developer will have to connect to that point at his cost.5) The Developers at the time of bidding may opt for either "DCR (Domestic Content Requirement) Category" or "Open Category" or both the categories. The Developers will submit separate Bids under both the categories.6) Power Purchase Agreement (PPA) will be signed between NVVN and the Project Developer for a Period of 25 years from the date of Commercial Operation Date (CoD). Excess power generated will be purchased at a notional Support Price of Rs.3 per kWh only.7) The Project Developer shall provide the following Bank Guarantees to NVVN in a phased manner as follows: (i) Earnest Money Deposit (EMD) of Rs. 10 Lakh/MW in the form of Bank Guarantee along with RfS.(ii) Performance Bank Guarantee of Rs. 20 Lakh/MW at the time of signing of PPA. 8) In case Project Developer will refuse to execute the Project, NVVN can encash EMD. If there will be any delay in the project or any degradation of performance of execution of Project, Performance Bank Guarantee would be encashed.9) Part Commissioning of Projects greater than 10MW capacity is acceptable provided the first part shall be 50% of Project Capacity.10) The Project shall be commissioned within 13 months from the Date of Signing of PPA.11) State Nodal Agency will be appointed by State Govt. to provide necessary support to facilitate the development of the Projects.12) The Secretaries of the Ministry of Power and the Ministry of New and Renewable Energy shall jointly decide regarding any difficulty in provision or interpretation of guidelines or modification of guidelines.

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