The Ministry of India has given consent for the implementation of the scheme for setting up 15,000 MW of grid-connected solar PV Power projects under the National Solar Mission through NTPC / NTPC Vidyut Vyapar Nigam (NVVN).
The project will be implemented in three tranches. The first one under Tranche-l will be of 3000 MW under mechanism of bundling with unallocated coal-based thermal power and fixed levelized tariffs.
The second one consisting of 5000 MW under Tranche-ll will be supported by the government, which will be decided after taking some experience from the Tranche-l.
The remaining 7,000 MW under Tranche-III will be implemented without any financial support from the government.
The completion of additional 15,000 MW capacity of projects in the private sector with private investment under the National Solar Mission is expected to boost up the process of achieving grid tariff parity for solar power in the country.
The Tranche-l that forms the Batch-II of Phase-II of the National Solar Mission will see 3000 MW capacity of solar plants based on bundling of solar power (3000 MW) with unallocated thermal power (1500 MW) in the ratio of 2:1.
For this purpose, the Ministry of Power has provided 1500 MW of unallocated thermal power.
The implementation of Tranche-l of the scheme will need total investment of over Rs.18,000 crore, which will be met mostly by private project developers.
The bundled power will be allotted to various states, providing land for setting up the solar power projects.
Besides, these states will have to purchase a major portion of the solar power for consumption, ensuring connectivity to the solar power project.
The capacity allotted to each such state will be finalized through developers, selected through bidding process done by NTPC /NVVN involving both private and government companies.
Andhra Pradesh will build 1000 MW capacity out of the 3000 MW under the bundling scheme and the balance 2000 MW capacity will be allotted in other states.
A Payment Security Mechanism or 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 to ensure bankability of PPAs and timely payment to developers, evolved through collaborative efforts of Government of India and Solar Project Developers.
Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules.
In addition, the quantity to be fixed with Domestic Content Requirement (DCR) in each tender will be prescribed by Ministry of New and Renewable Energy (MNRE) based on the prevailing market conditions from time to time.
Further, the bids received under both the categories (one with DCR requirement and the other without any such requirement) will be evaluated and successful bidders selected independently.
The first Phase of the National Solar Mission (2010-2013) had a target of 1100 MW for Grid-connected solar power generation capacity, against which 1685 MW was set up in the country under various schemes.
Sabeena Wahid