Nvvn To Set Up 15 000 Mw Solar Projects Under Jnnsm

on Wednesday 18 June 2014
Nvvn To Set Up 15 000 Mw Solar Projects Under Jnnsm
The Union Cabinet headed by Prime Minister, Narendra Modi, recently granted permission for the execution of the scheme for setting up of 15,000 MW of grid-connected solar PV power projects under its flagship programme of Jawaharlal Nehru National Solar Mission (JNNSM) through NTPC Vidyut Vyapar Nigam Limited (NVVN) in three tranches.

Three thousand megawatt would be set up under Tranche-l under the mechanism of bundling with unallocated coal based thermal power and fixed levellised tariffs. Meanwhile, 5,000 MW would be set up under Tranche-ll with the assistance from the government, which would be determined after gaining some experience while executing Tranche-l and the remaining 7,000 MW would be set up under Tranche-Ill without any monetary assistance from the government.

The successful completion of additional 15,000 MW capacity of grid-connected solar PV power generation projects, primarily in the private sector along with the assistance from private investment under the JNNSM would give the much needed boost to the process of accomplishing grid tariff parity for solar power.

This would also help in the reduction of the consumption of kerosene and diesel which is being used to meet the unmet demand. The bundled power will be given to different states, which would come to the fore in giving land for the setting up of solar power projects; will buy a large portion of the bundled solar power for consumption within the state and ensure connectivity to the solar power project.

The capacity, which would be allotted to each of the states, would be set up with the aid of the developers and they would be selected through international competitive bidding by NTPC /NVVN. Private and government players will have the option to bid for the projects.

Meanwhile, 1000 MW capacity out of the 3000 MW under the bundling scheme will be set up in the state of Andhra Pradesh where land has already been identified. The remaining 2000 MW capacity under the Bundling Scheme will given to other states, which are eager to come forward.

The cost of setting up the projects under Tranche-l of the scheme will require an investment of over Rs 18,000 crore, most of which will have to be met by private players.

Along with the support from the government of India and the solar project developers, a payment security mechanism / working capital fund with an estimated corpus of Rs 2300 crore to cover 3 months payment for bundled capacity of 3000 MW of Solar Capacity with 1500 MW NTPC Coal Power will be set up. The objective is to ensure the bankability of power purchasing agreements and timely payment to developers.

A certain portion of the capacity will be kept aside out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules. The Ministry of New and Renewable Energy (MNRE) will determine the quantity for the domestic content requirement (DCR) in each tender depending on the prevailing market conditions on a regular basis. Bids, which would be received under both the categories (one with DCR requirement and the other without any such requirements) will be assessed and successful bidders would be selected independently. This DCR will also be technology agnostic and will be applicable to both the crystalline silicon and thin film SPV cells and modules.

Article source: http://feedproxy.google.com/~r/Energynext/~3/z3UaVWni86U/

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