Highlights for Tamil Nadu State policy

Dear All,

Tamil Nadu has released by far the largest tender for solar power generation. The first phase would contain the bid for 1000MW of competitive bidding. The Solar Energy Policy mandates 6% Solar Purchase Obligation (SPO) (starting with 3% till December 2013 & 6% from January 2014) for the HT consumers (HT Tariff I to V) and LT commercial consumers

Here you can find tender for Tamil Nadu.


http://www.tenders.tn.gov.in/pubnowtend/uploaded/TD_tne81176_solar_tender-spec-2012.pdf 


Some highlights from tender:

1. Competitive bidding process.

2. 20 year PPA

3. Minimum 1MW. No upper limit on bidding. Developers can bid unto any capacity.

4. EMD of 7lakh/MW.

5. Security deposit is 30Lakh/MW

6. Plant to be commissioned within 10months from issuance of LOI. Failing to which
    if 
    Delay upto 1 month – 20%
    Delay of more than 1 month and upto 3 months – 40%
    Delay of more than 3 months – Remaining Bank Guarantee

    Delay beyond 18 months – PPA will be terminated and the Project will be removed from the list of  selected projects

7. Bidders need to provide proof of financial capability and have to show networth of 1Cr/MW

8.  All the bidders selected will be asked to match L1 negotiated rate. If the total aggregate capacity of the Solar PV Projects qualified by TANGEDCO is higher than 1000 MW, the final Selection of the Projects from the list of qualified projects will be done on pro-rata basis


Please feel free to add more insights on TN state policy

JNNSM Phase II Draft annaounced

Dear All,


Its sunny side up yet again.

India’s Ministry of New and Renewable Energy (MNRE) has issued a draft solar policy for Phase II (2013- 2017) of the country’s Jawaharlal Nehru National Solar Mission (JNNSM), outlining its strategy to install 10GW by 2017 through mostly utility-scale projects.

The objective of the MNRE’s Solar Mission is to create through rapid scale-up of capacity and technological innovation, to drive down costs towards grid parity. The ministry believes solar power could achieve grid parity and become cost competitive with coal in India by 2018 due to the decrease in module prices.

MNRE draft

MNRE envisages that of this 10GW target (see table above), 4GW would be developed under the JNNSM central scheme and 6GW under various state-specific schemes. During Phase II, MNRE expects that around 20,000 villages will benefit from these schemes for off-grid electricity generation projects, to hit its target of 1,000MW of roof-top solar

The schemes include 'bundling', which involves combining solar power with traditional sources of energy like coal, which can be sold to utilities at a cheaper rate than offered by solar power alone.
There is also a Generation Based Incentive (GBI) which increases deployment of rooftop PV systems as well as small power plants. The MNRE is required to offer utilities a set price valid for 12 years. However, the government is concerned that with falling module prices, the GBI could become an expensive incentive scheme. Project sizes under Phase II are expected to be in the range of 500kWp to 2.5MWp.

The majority of project allocations will be completed under the Viability Gap Funding (VGF) offered to private investors in the form of grants from the government. The scheme aims to ensure widespread access to infrastructure provided through a public-private partnership framework by subsidising the capital cost to developers by 20% and thereby reducing the need for government involvement in solar projects.

Phase II will also include aid to solar manufacturers across the value chain, although details were not provided in the draft policy. Financing for manufacturers will be crucial at this time, with the Indian Solar Manufacturers’ Association having approached the World Trade Organisation over complaints against foreign manufacturers undercutting domestic manufacturers.


Till then take care