JNNSM Phase II Batch I – Extension of last date and other Updates

Recently on 20th December, Solar Energy Corporation of India (SECI) announced the extension of the last date of submission of bids in response to setting up 750 MW grid connected solar photovoltaic projects under JNNSM Phase II Batch I. The last date has now been extended from 28th December, 2013 to 20th January, 2014 (Up to 12.30 hrs). As per the announcement, this extension has been made based on various requests SECI/MNRE received for the same. It also mentioned that a document with amendments and clarifications related to VGF Securitization agreement will be uploaded on the website soon. This announcement made on SECI website can be accessed here. A month after releasing the final RfS document, SECI released Clarifications to the RfS document and Amendments document along with Revised PPA on 30th November following the pre-bid meeting. Our blogpost on the final RfS document released in October is available here. Given below are some of the clarifications and amendments from these documents: SECI will be responsible for taking the Open Access …

HIMURJA Tender for 216 rooftop solar power plants – 2 KW each

HIMURJA – Himachal Pradesh Energy Development Authority has released a tender for Supply, Installation & Commissioning  of 2 kWp SPV Power Plants in 216 locations across the state. This is for the state Police Department and the Solar Power Packs will be installed at various police stations across the state. Some of the key highlights of the tender: All the firms who are the Channel Partners for SPV Programme accredited by the Ministry of New and Renewable Energy sources, GOI or Credit Rating (from MNRE Accredited Rating Agency) of “SP 2C” & above under the Off Grid and Decentralized programme under JNNSM programme are eligible for tendering. The firms must have experience of installation and commissioning of SPV Power Plant up to total aggregate capacity of 100 Kwp in the Off grid Programme. The annual turnover of the firm should be Rs 8 crores for the each preceding three years i.e. 2010-2011, 2011-12 & 2012-13. Time of execution – Material to be supplied within 4 months of awarding the contract and …

MNRE – RfS for setting up 750 MW Solar PV Projects

After releasing the final set of guidelines, the Ministry of New and Renewable Energy (MNRE) has released an RfS with details about setting up 750 MW grid connected solar photo voltaic projects under JNNSM Phase II Batch I. Given below are some of the important points from this document. Capacity: Total – 750 MW, divided into Part A and Part B Domestic Content Requirement (DCR) – for projects to be implemented with DCR, both the solar cells and modules used in these projects must be made in India Bidders can apply for Projects either under Part A (DCR) – 375 MW or Part B (Open) – 375 MW or for both Part A & Part B Minimum capacity of each project – 10 MW and maximum capacity – 50 MW Bidding process: First step – Techno-Commercial evaluation Second step – Financial bid (VGF requirement) evaluation VGF Securitization Agreement: SECI will finalize the appropriate mechanism for securitization of VGF in line with the Government’s guidelines and upload the same soon on …

Temporary slowdown in India’s Grid-Connected Solar industry

This year began with a promising note for the solar industry – policies were introduced and finalized and biddings of the capacity 2945 MW were to be conducted. Details of various state solar tenders are provided in the table below. However as the year progressed the deadlines for these tenders got extended and resulted in a temporary slowdown of the solar industry. A very prominent reason for this slowdown is the much awaited and delayed 750 MW solar PV bidding for Viability Gap Funding under JNNSM Phase-II, Batch- I. The very first draft guidelines for this were announced as early as in April which created a buzz in the industry and at the same time speculation about the Domestic Content Requirements (DCR) involved. In May the methodology draft was introduced and according to this the total capacity would be split up into Part A and Part B projects with DCR being a criteria for Part B projects. This led to further speculation about the capacity of Part B projects and …

MNRE announces Revised Draft Guidelines for selection of 750 MW Solar PV projects through VGF

After announcing a draft methodology document earlier in May for selection of 750 MW Grid connected Solar PV projects under JNNSM Phase -II, Batch-I through Viability Gap Funding (VGF), MNRE once again released a draft document with revised guidelines. Our blogpost on the draft document released in May can be accessed here. Additions/revisions made to the earlier guidelines as mentioned in the latest document are mentioned below. Domestic Content Requirement (DCR) Out of the total 750 MW, 375 MW will be kept for bidding with DCR, i.e. 50% of projects will be built with DCR Both solar cells and modules used in these power plants must be made in India Mechanism of VGF Disbursement of VGF will be done in three stages: 50% on successful commissioning (COD) of the full capacity Remaining 50% progressively over the next 5 years as follows: End of 1st Year from COD – 10% End of 2nd Year from COD – 10% End of 3rd Year from COD – 10% End of 4th Year from COD …

75% of 750 MW Solar Projects through VGF to be built with DCR

After much speculation about Domestic Content Requirement (DCR) for the solar projects to be built through Viability Gap Funding (VGF) under JNNSM Phase-II, Batch-I, the Government has decided that DCR would be applicable to 75% of the total 750 MW projects. This information was published in The Hindu Business Line yesterday quoting Dr. Farooq Abdullah. He also said that bidding for these projects would start in the coming month. According to the draft guidelines released in April, DCR would be applicable to both solar cells and modules. Also, as per the Methodology Draft released in May: Total capacity of 750 MW would be split into Part A and Part B projects and DCR would be applicable only to Part B projects. In Format 6.10 of the Methodology Draft, it is mentioned that DCR is to be met in case of projects based on Crystalline Silicon Technology only. No mention of DCR for Thin-Film was made in this Format. The details of DCR are under review. The final RfS document which is yet …

Revision of Off-grid and decentralized solar applications bench mark cost for 2013-14

The Ministry of New and Renewable Energy (MNRE) has released an amendment to the bench mark cost for projects participating under ‘Off-grid and Decentralized Solar Applications Programme’ under the JNNSM during 2013-14. A downward revision of the bench mark costs  has been made for SPV power plants – both with and without battery bank. The table below provides the revised bench mark costs (2013-14): The original document with this latest revision of bench mark costs can be accessed here. These bench mark costs were previously revised in November 2012 as shown in the table below (up to 31st March 2013). The original document with the revision of bench mark costs made in November, 2012 can be viewed here.

MNRE issues Methodology (Draft) for 750 MW Solar PV projects under JNNSM Phase- II, Batch- I

Most of the guidelines mentioned in the methodology (draft) issued by MNRE on 9th May, 2013 are same as those mentioned in the Draft guidelines document issued by them on 18th April, 2013. This methodology (draft) is intended for stakeholders’ consultation and suggestions/feedback may be e-mailed to SECI. This document shall form the basis for preparation of final RfS document based on which bids will be invited by SECI. Changes/additions identified in this document are mentioned below. Our blog on the earlier released guidelines can be accessed here. Total Capacity offered: 750 MW capacity will be divided between Part- A and Part- B projects Capacity split between each part is not mentioned in this document Bidders can apply for projects under either Part- A or Part- B or for both Part- A & Part- B The clause “If the project fails to generate any power continuously for 1 year within 25 years or its assets are sold or the project is dismantled during the tenure of the project, SECI will …

MNRE invites comments for 750 MW Solar PV plants through Viability Gap Funding under JNNSM Phase- II, Batch- I

Ministry of New and Renewable Energy (MNRE) on 18th April, 2013 released draft guidelines for setting up of 750 MW Grid Solar PV plants through Viability Gap Funding (VGF) route under JNNSM Phase- II, Batch- I. As per these guidelines, reverse bidding for projects shall be carried out on the basis of the amount of money required to make the project commercially viable and accordingly projects shall be selected. Mechanism of operation of VGF: Fixed tariff at Rs.5.45 per kWh for 25 years project period for projects not availing Accelerated Depreciation (AD) benefits and Rs. 4.95 per kWh for projects availing AD benefits Upper limit of VGF is 30% of the project cost or Rs. 2.5 Cr./MW, whichever is lower Equity contribution of at least Rs. 1.5 Cr./MW Disbursement of VGF amount is done in three stages 25% at the time of delivery of at least 50% of the major equipment (modules, mounting structures, power conditioning units, switchgears and transformers) at the site after inspection by a committee to be …

Viability Gap Funding Explained

Viability Gap Funding (VGF) was announced in 2004 to support the PPPs (Public Private Partnership) in infrastructure projects as they require high upfront investments and have a long gestation period, offer fixed returns etc. This financial support is provided in the form of capital grants, one time or deferred at the stage of construction to make such socially viable projects commercially viable. MNRE has proposed norms for VGF as a mode of funding for grid connected solar projects during Phase II of JNNSM. The cumulative target for Phase II of JNNSM (2013-17) is installation of around 10,000 MW utility scale solar power projects. As per the guidelines of the policy document (draft), the process of reverse bidding would be carried out where the bidders would bid for the funding requirement in Rs/MW to make their projects commercially viable.  The advantage of this scheme is that with upfront availability of part of capital, cost of financing would be lower. However on the down side this could result in the long term …

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