JNNSM tender for 1500MW in August; rate expected at Rs 5

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Government of India has issued new tenders to set up 1,500MW of solar power plants under the Jawaharlal Nehru National Solar Mission (JNNSM).

The tender process, which is part of the second batch of phase-II of JNNSM, is likely to commence in August.

National Solar MissionThis is the largest tender issued by the Ministry of New and Renewable Energy (MNRE) under the JNNSM scheme. The ministry has appointed NTPC Vidyut Vyapar Nigam (NVVN) to expedite the phase and meet the mission’s targets.

India has witnessed significant drop in solar power tariff following the implementation of JNNSM. Over the past three years, solar power has dropped nearly 60 percent. The second phase of JNNSM achieved a fixed tariff rate 5.45 a unit for 25 years, supported by Viability Gap Fund (VGF).

In the latest bidding, the rate is expected to come down to at least Rs 5 a unit, says Kapoor, joint secretary, MNRE.

NVVN will carry out the tenders through “a transparent, tariff (rate)-based reverse bidding process,” said MNRE in a statement.

NVVN will also purchase the power from successful bidders at their bid tariff and sell the power bundled with cheaper conventional power at an average rate.

NVVN would also bundle the solar power generated with cheaper conventional power and sell at an average rate.

Under the new phase, the selection of PV projects will be carried out in a phased manner. The first tranche for FY2014-15 will cover projects of 750MW in capacity, and the remaining projects will be selected in the second tranche, that is, in FY2015-16.

Out of the 1,500MW capacity, 500MW will be allotted for domestic content , MNRE sources said.

JNNSM has set an ambitious target of 10,000 MW by 2017 and 20,000MW by 2022. In the first phase, the plan has achieved a capacity addition of 1,100 MW. Another 750 MW of projects were tendered in January this year as part of the second phase of JNNSM.

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