Saturday, 14 March 2015


About the Program: Ministry of New And Renewable Energy, Government of India ("MNRE") proposes to set up 15,000 MW Grid Interactive Solar Power Systems ("GISPS") in India.

Implementation: National Thermal Power Corporation Limited ("NTPCL") and its power trading arm NTPC Vidyut Vyapar Nigam Limited ("NVVNL"), 2 prominent public sector units in India, will implement the program through project developers including private sector.

Phases: Program will be implemented through 3 (three) tranches (i) Tranche I 3,000 MW during 2014-15-2016-17; (ii) Tranche II 5,000 MW 2015-16-2017-18; (iii) Tranche III 7,000 MW 2016-17-2018-19. 

Phase I Implementation: This phase will be based on bundling of solar power with unallocated thermal power in the ratio of 2:1 and fixed levellised tariff. The bundled power will be allocated to the respective states which provide land to set up the GISPS, purchase a major portion of the bundled power and ensure connectivity of the GISPS. Under phase I 1000 MW qouta has already been allocated and the balance 2000 MW will be allocated to Andhra Pradesh other interested states. The qouta alloted to the states will be set up through developes through international competitive bidding organized by NTPC/NVVNL. Private companies will be free to bid

Operational Mechanism for Phase I

1. Minimum capacity for GISPS will be 10 MW and maximum will be fixed by the respective states.

2. Bidding will be conducted electronically as per guidelines developed by NTPCL/NVVNL. 

3. While submitting bids, developers need to qoute fixed levellised tariff for entire project duration of 25 years.

4. Selection of developers will be based on the lowest qouted levellised tariffs. 

5. Qouted tariff can not be higher than the tariff notified by State/Central Electricity Regulatory Commission.

6. The tariff once fixed, is applicable for 25 years and cannot be changed by the State Electricity Regulatory Commission.

Channelization for Phase I

Solar power generated by the selected GISPS will be purchased by NTPCL/NVVNL as per the qouted tariffs and will be bundled with thermal powers generated from NTPC's coal based stations on 2 (Solar):1 (Thermal) basis. The bundled power will be sold to state distribution utilities under 25 years power purchase agreement ("PPA"). As the weighed average tariff of the solar + thermal components is on a proposed trading margin of Rs. 0.07/KWH, this will be attractive for the state utilities to purchase.

Incentive for GISPS Developers

1.  Bidders will be free to avail fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays available for the projects.

2. Developers will be free to reconfigure and repower their plats from time to time but during the validity of the PPA. However, excess power generated will be purchased at a notional support price of Rs. 3/KWH only. The developer, if wishes, can sell the power in open market too.

Domestic Content Requirement

Out of the total procurement, some capacity will be earmarked for domestically manufactured solar cells and solar modules. This will be prescribed by MNRE for each tender from time to time. This requirement will be technology agnostic i.e. applied on both crystaline silicon, thin film solar photo voltaic cells and modules. 

For more details, please refer to

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