The Cabinet Committee on Economic Affairs (CCEA) on 20 January 2016 gave its approval for setting up over 5000 MW of Grid-Connected Solar PV Power Projects on build, own and operate basis.
The work will be implemented by Solar Power Developers (SPDs) with Viability Gap Funding (VGF) under Batch-lV of Phase-ll of the Jawaharlal Nehru National Solar Mission (JNNSM). The total investments expected under the scheme is about 30000 crore rupees.
This would help in creating additional 5000 MW capacity of Grid-connected solar PV power generation projects in four trenches of each 1250 MW capacity during four financial years - 2015-16, 2016-17, 2017-18 and 2018-19. It will also help in employment generation of about 30000 people in rural and urban areas with reduction of about 8.525 Million T of CO2 emissions into environment every year.
Key highlights of Grid-Connected Solar PV Power Projects
• Installation of 5000 MW Solar PV plants will generate about 8300 Million units per year, which caters power to almost 2.5 Million households.
• The Scheme will be implemented by Solar Energy Corporation of India (SECI) as per the guidelines of Ministry of New and Renewable Energy (MNRE).
• SECI will prepare necessary bidding documents for inviting the proposals for setting up of projects on a competitive bidding through e-bidding.
• SECI will enter into Power Purchase Agreement (PPA) with the selected developers and the Power Sale Agreement (PSA) with the buying entities.
• Requisite funds for provision of the VGF support will be made available to MNRE from the National Clean Energy Fund (NCEF), operated by Ministry of Finance.
• Out of 5000 MW, some capacity in each tranche, will be developed with mandatory condition of solar PV cells and Modules made in India. This will be called the Domestic Content Requirement (DCR) category and remaining will be in open category.
• Projects could be set up in the Solar Parks being developed under a separate MNRE Scheme and also at other locations, which could be selected by the bidders on their own.
• Commissioning period will be 13 months from the date of signing of PPAs.
• MNRE will provide 100 percent VGF to SECI to disburse to Solar Power Developers immediately after commissioning, subject to availability of funds.
• The State Governments will appoint a State Level Agency for providing necessary support to facilitate the required approvals and sanctions in a time bound manner to achieve commissioning of the projects within the scheduled timeline.
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What: Approved by CCEA
When: 20 January 2016