MNRE releases Draft Guidelines for Selection of 1500 MW Grid-connected Solar PV Power Projects under Phase II Batch-II

With the beginning of monsoon in Gujarat, the Ministry of New and Renewable Energy (MNRE) has also released its draft guidelines & invited comments for the implementation for selection & implementation of upcoming 1500 MW Grid Solar PV power projects under National Solar Mission, Phase-II Batch-II Scheme which proposes solar power Bundling with Thermal Power as was there during Phase-I bundling Scheme implemented through NVVN, where the Solar Power from the plants is being purchased by NVVN and is sold to Distribution Utilities/ DISCOM’s after bundling with power from the unallocated quota of power from Coal Based Stations of NTPC on equal capacity (MW) basis, thus effectively reducing the average per unit cost of solar power.

Till now under the JNNSM mission there has been allocations under the Phase I (Batch I & II) and Phase II (Batch I) schemes.

Brief of JNNSM Phase I Scheme :

Earlier under the Phase I Batch I, bundling scheme Solar PV as well as Solar Thermal power projects with an aggregate capacity of 970 MW (besides 84 MW selected under migration scheme) were selected in two batches (batch-I during 2010-11 and batch- II during 2011-12) through a process of tariff based reverse bidding. The resulting tariffs in Batch-I for SPV projects ranged between Rs.10.95 and Rs.12.76 per unit, with average of Rs.12.12 per unit and for Solar Thermal Projects the tariff ranged between Rs.10.49 and Rs.12.24 per unit, with average tariff being Rs.11.48 per unit.

In Phase I Batch-II, for Solar PV Projects, the tariff ranged between Rs.7.49 and Rs.9.44 per unit, with average tariff being Rs.8.77 per unit. A approximate capacity of 568 MW has been commissioned so far under the JNNSM Phase-1 scheme.

Brief on JNNSM Phase II – Batch I Scheme :

More details on Phase II Batch I can be found in our previous blogs :

  • Guidelines for JNNSM Phase II Batch I  –   CLICK HERE
  • List of successful bidders under JNNSM Phase II Batch I  –  CLICK HERE

Now MNRE again is out with the draft guidelines for selection of solar projects under JNNSM Phase II Batch II.

Brief Highlights & Overview of the JNNSM Phase II Batch II draft guidelines :

The Batch II scheme proposes the selection of solar projects under the scheme of Bundling with Thermal power as in Phase-I, to be implemented through NVVN.

Operational Framework :

  1. The selection of Grid Connected Solar PV Projects of 1500 MW total capacity would be carried out by NVVN through, tariff based reverse bidding process.
  2. NVVN will purchase the power from the successful developers at their bid tariff and sell bundled power to Distribution Companies Utilities/ other Bulk Consumers after adding Trading Margin by executing & entering into Power Purchase Agreement (PPA) with Solar Power Developers and Power Sale Agreement (PSA) with Distribution Companies/ Utilities/ other Bulk Consumers.

Proposed Capacity of Solar Project :

The plant capacity shall remain in multiples of 10 MW with,

  • Minimum Capacity – 10 MW
  • Maximum Capacity – 50 MW

The above capacity is the installed Capacity of the Power Plant / Maximum Power Output (AC) at the Plant Bus-bar located within the Plant premises.

The Company, including its Parent, Affiliate or Ultimate Parent-or any Group Company may submit application for a maximum of five projects at different locations subject to a maximum aggregate capacity of 100 MW per tranche.

Land Requirements : Minimum 2 ha per Mega Watt

Processing fees :

A non-refundable processing fee of Rs. 2 Lakh for each Project upto 20 MW capacity & Rs.3 Lakh for each project above 20 MW capacity

Financial Qualification Criteria :

  • Net Worth of the Company : Rs 2 Crores / MW

Selection of Solar Projects :

Selection of solar project proposed to be done in phased manner under :

  • First Tranche in FY 2014-15 – 750 MW of solar projects
  • Second Tranche in FY 2015-16 for other 750 MW of solar projects

After shortlisting the projects who meet the qualification criteria the solar project developers / bidders would be asked by NVVN to submit Request for Proposal (RfP) bid indicating the discount in paisa/kWh on CERC Approved Applicable Tariff.

The Domestic Content Requirement (DCR) :

To protect the interest of the domestic solar manufacturers in India, the draft guideline proposes projects of capacity to the tune of 500 MW to be kept for bidding with Domestic Content Requirement (DCR).

Crystalline Solar PV Modules & Cells : Under DCR, the solar cells and modules used in the solar PV power plants must both be made in India.

Thin Film Solar Modules : For thin film modules the entire Modules assembly comprising of Thin-film Solar Cells shall be manufactured in India. The starting substrate (without any semiconductor junction) and other requisite raw materials can be imported.

Financial Closure & Commissioning of solar project :

  • Financial Closure within 210 days from the date of signing Power Purchase Agreement (PPA)
  • Project Commissioning : Within 13 months of the date of signing of PPA
Proposed Timeline for JNNSM Phase II Batch II Solar Projects

Proposed Timeline for JNNSM Phase II Batch II Solar Projects

The official document of the draft guidelines can be accessed by Clicking Here

Friends this is the draft guidelines & MNRE has invited comments from the Interested Stakeholders on the same by 23rd July, 2014.

Meanwhile till we meet next time with more updates on new and upcoming solar projects in India…enjoy the monsoon at its best & let the rain beat upon your head with silver liquid drops or as they say : “Some people walk in the rain, others just get wet” 🙂

Cheers !

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www.urvishdave.com

Solar Project Consultant – India

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Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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About Urvish Dave

Urvish Dave is working as a Project Consultant in the Renewable Energy Arena with an expertise and keen focus on Solar Energy Sector viz. Rural Electrification, Off-Grid Solar Projects, Grid connected, Captive power plants, Renewable Energy Certificates (REC) Mechanism etc. for various Renewable Projects in India along with market intelligence pertaining to renewable energy sector. He holds the distinction of executing numerous Solar projects during the career path including EPC projects for Rural Electrification, Solar Grid Connected Projects, Off-Grid Projects etc. For Consultation and Turnkey Solutions in Renewable Energy Projects and energy efficient product's, visit www.urvishdave.com or write him at info@urvishdave.com
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