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 – Setting up 750 MW Solar PV projects – Further updates

Ministry of New and Renewable Energy (MNRE) has released a document stating that the Cabinet Committee on Economic Affairs has approved the scheme for setting up 750 MW Solar PV projects through VGF with support from the National Clean Energy Fund (NCEF). This document released by Solar Energy Corporation of India (SECI) can be downloaded here. MNRE has also once again announced revised guidelines for this scheme. The revisions/additions made to the recently revised guidelines as mentioned in this latest document are mentioned below: Tariff to be paid to the developer availing accelerated depreciation benefit is reduced to Rs. 4.75 per unit If the project fails to generate any power continuously for 1 year within 25 years or its major assets are sold/ project dismantled during this tenure, SECI will have right to refund VGF as specified below: These guidelines are also said to facilitate fulfillment of RPO of obligated entities Revised time schedule: The original document containing these revised guidelines can be downloaded here. The earlier released tentative date for issuance of RfS for …

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 …

MNRE – Strict Enforcement of RPO for States

Ministry of New and Renewable Energy (MNRE) has made a much needed and significant move by suggesting to the Ministry of Power to make it mandatory for states to fulfill their Renewable Purchase Obligation (RPO). As per this suggestion, if the states fail to do so then they will not receive concessions from Centre under financial restructuring scheme of State Discoms. (Source: Times of India) Earlier Maharashtra Electricity Regulatory Commission (MERC) and Punjab Electricity Regulatory Commission (PSERC) had directed their obligated entities to fulfill their RPO targets. Our blogpost on this enforcement is available here. These decisions by the Central and State authorities are much needed to improve the current state of the Renewable Energy Certificate (REC) market and also increase the share of renewable energy in the total energy mix. At the same time we need to wait and watch and hope that these decisions turn into actions.

Rajasthan – Tender to select suppliers for Rooftop Solar scheme

Rajasthan Renewable Energy Corporation Limited (RREC) released a tender document for Rate Contract to select a MNRE approved Channel Partners/ SPV Module manufacturers for work under its Roof top Solar power Generation Scheme. Given below are some of the important details from this tender document. Scope of work: Design, Supply, Installation, Testing, Commissioning and free Maintenance for 5 years for Off-Grid/Grid connected SPV power plants on Turn key basis Cities for implementation: Ajmer, Jaipur and Jodhpur Eligible beneficiaries for these systems: Institutions Industries Hospitals/Nursing Homes Hotels/Resorts Government organisations Commercial organisations Estimated maximum capacity: 5MW Tentative Target Capacity: Minimum capacity of proposals: Bidder shall bid for at least 250 kW PV capacity systems Estimated project cost: Rs. 50 Crores (For 5 MW) Earnest Money Deposit (EMD):  Rs.10 Lakh Experience and Competence of bidder: Minimum 2 years experience of successful installation of off-grid/grid connected PV projects Installed at least one grid connected Solar PV plant with capacity not less than 25 kW commissioned during the last two years (FY: 2011-12 and 2012-13) …

Generation Based Incentive for Wind Power being reinstated by Government of India

In the budget of 2013-14, Finance Minister P. Chidambaram had promised reinstating the Generation Based Incentive program for Wind Energy in India. The resolution to that effect has been finally passed by the cabinet which met on August 1st. The quick summary of the resolution that has been passed and the benefits to wind industry: Generation Based Incentive (GBI) of 50 paise per kWh (unit) generated by Wind Power. The GBI will be given till a maximum of Rs. 1 crore per MW. That means 20 million units of energy per MW can claim GBI during the entire lifetime of the wind turbine. The claim period for the GBI is between 4 years to 11 years. ie., the developer can claim the entire GBI money of Rs. 1 crore in not less than 4 years and not more than 11 years. The GBI subsidy can be availed with retrospective effect. No confirmation has been provided on reinstating the Accelerated Depreciation. This ruling is significant since it  brings back much needed …

MNRE – Guidelines for feeding Solar Power Project Capacity Addition Data

The Ministry of New and Renewable Energy (MNRE) has released a format for feeding solar capacity addition data. This guideline is provided to assist Solar Power Developers (SPDs) to feed solar capacity addition so that the MNRE complies the total solar power generation capacity throughout the country. The format prescribed by MNRE is given below to be filled by any SPD who has commissioned a project anywhere in the country. They are required to fill this data w.e.f. April, 2013 and details of this capacity once fed must not be repeated in order to avoid duplicacy of capacity addition. SPDs are required to fill the data by clicking the following url: The original guidelines published on the MNRE website can be accessed here.

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