India reveals rules for next phase of solar power mission

India is trying to take it to the next level in its renewable energy and environmental initiatives. The country has a long list of ways it’s not only trying to reduce its carbon footprint, but bring much of its population up to date in terms of energy accessibility.

The 1000 MW bundling scheme that was introduced under JNNSM Phase-I have been successful in incentivizing setting up of a large number of solar power projects and minimizing the impact of tariff on the distribution companies. The same approach is now proposed for 1500 MW Solar PV projects to be selected under Batch-II of Phase-II of National Solar Mission scheme.

Key Points

  • It is to be carried out by NVVN through a transparent, tariff based reverse bidding process.
  • NVVN will enter into suitable Power Purchase Agreement (PPA) with Solar Power Developers and Power Sale Agreement (PSA) with Distribution Companies, Utilities and other Bulk Consumers.
  • There will be two bid tranche: 750 MW in 2014-15 and remaining 750 MW in 2015-16.

Domestic Content Requirement

DCR to be 500 MW out of the total 1500 MW. It was 50% (375 MW out of 750 MW) in Phase-II Batch-I scheme.

The total aggregated capacity of the grid connected solar projects to be developed under the bundling scheme will be 1500 MW. This scheme provides for deployment of only Solar PV Technology Projects.

Main Objectives of the Scheme

  • To facilitate the scale up of solar capacity addition under NSM Phase-II
  • To supplement grid power
  • To facilitate fulfilment of RPO requirement
  • To facilitate speedier implementation of the new projects
  • To promote manufacturing in the Solar PV

Guidelines for Selection of Solar PV Projects

Capacity of Project

At least 10 MW and the maximum capacity of 50 MW (in multiples of 10 MW)

Request for Selection for Shortlisting of Projects

NVVN to invite project developers to participate in RfS for installation of Solar Photovoltaic Power Plants on BOO basis.

Number of Applications by a Company

A maximum of 5 projects at different locations and a maximum capacity of 100 MW per tranche.

Qualification Criteria

Financial Criteria

The Net Worth of the company should be equal to or greater than the value calculated at the rate of Rs. 2 crores or equivalent US$ per MW of the project capacity.

Net Worth= (Paid up share capital + Free Reserves – Revaluation Reserves – Intangible Assets – Miscellaneous Expenditures)

Technical Criteria

Under this scheme, it is proposed to promote only commercially established and operational technologies to minimize the technology risk and to achieve the commissioning of the Projects.

Connectivity with the Grid

The plant should be designed for inter-connection with the transmission network of STU/CTU or any other transmission utility at voltage level of 33 kV or above. The Project Developers should indicate to the transmission – licensee the location of its proposed project.

The responsibility of getting connectivity and open access with the transmission system owned by the STU / CTU or any other Transmission Utility will lie with the Project Developer.

The arrangement of connectivity can be made by the SPD through a dedicated transmission line which the SPD may construct himself or get constructed by STU or Discom.

Domestic Content Requirement

Out of the total capacity of 1500 MW under Batch-II Phase-II, a capacity of 500 MW is kept for bidding with Domestic Content Requirement (DCR). Under DCR, the solar cells and modules used in the solar PV power plants must be made in India. The Developers at the time of bidding may opt for either “DCR” or “Open” or both the categories.

Download JNNSM Phase-2 Batchg II Draft Document