Development of 15000MW Grid Connected Solar Power through NTPC under NSM
Ministry of New and Renewable Energy has released guidelines for the implementation of the development of 15000MW grid connected solar power plants through NTPC/NVVN under the National Solar Mission in a span of 5 years from 2014-15 to 2018-19.
This will be implemented through private or public developers in three tranches:
- Tranche 1: 3000MW 2014-15 to 2016-17
- Tranche 2: 5000MW 2015-16 to 2017-18
- Tranche 3: 7000MW 2016-17 to 2018-19
In Tranche-1, which will be Batch –II of Phase-II of NSM, 3000MW of the solar PV power plants will be based on bundling of solar power (3000 MW) with unallocated thermal power (1500 MW) in the ratio of 2:1 (in MW terms), for which the required 1500 MW unallocated thermal power has been made available by the Ministry of Power. The capacity allotted to each such state will be set up through developers, to be selected through international competitive bidding by NTPC/NVVN.
Out of 3000MW, 1000MW will be set up on land already identified in Andhra Pradesh under the bundling scheme. This 3000MW capacity Solar PV plants under Tranche -1 will be set up based on the bundling of solar power with unallocated thermal power and fixed levellised tariffs. The mechanism of operation of this model shall be as follows:
- Minimum capacity of eligible plant will be 10MW and maximum may be fitted for each state lot of projects on the basis of the size of the lot, land availability and requirement.
- The bidding will be state specific and conducted through e-bidding. It will be based on fixed levellised tariffs for the entire project of 25 years. Developers will be committing to sell power from their plants to NVVN/NTPC at the quoted tariff over the 25 years period.
- The bidders will be free to avail fiscal incentives like AD, concessional customs and excise duties, tax holidays, etc. available for such projects.
- NVVN/NTPC will sell this bundled power to willing State Utilities under 25 years PSAs, at weighted average tariff of the solar and thermal components plus their proposed trading margin of 0.07/kWh.
Implementation of Projects
MNRE will finalize detailed guidelines for the implementation of the Project for setting up of 15000MW Solar PV plants under the three tranches, covering both technical and financial aspects.
Domestic Content Requirement
Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules. MNRE will prescribe the quantity to be fixed with DCR in each tender based on the prevailing market conditions from time to time. Further, this DCR will also be technology agnostic i.e., applied on both the crystalline silicon and thin film SPV cells and modules.
Role Of NTPC Ltd./NVVN
NVVN shall issue the RfS document inviting developers to submit the bids quoting their fixed 25-year levellised tariffs for the sale of power from the Solar PV power plants. NVVN will also evaluate bids received, issue LoI to successful bidders, sign PPAs with them for the purchase of the solar power and also sign back to back PSAs with the interested State Utilities/ Discoms for the sale of solar power.
Role of State Governments/ Nodal Agencies
States will be requested to indicate the quantum of bundled Solar power they would be interested in procuring out of the total 4500MW based on their RPOs.
State Nodal Agencies will be responsible in providing support in several areas like grid connectivity, land acquisition, water availability, etc. monitoring of progress of the projects and their commissioning and related activities.
Setting up of the Working Capital Fund
A Payment Security Mechanism/ Working Capital Fund with an estimated corpus of Rs.2300 crore to cover 3 months payment for the bundled capacity of 4500MW, will be set up to ensure bankability of PPAs and timely payment to developers. This will be evolved through collaborative efforts of GoI and SPDs.
Timelines for Implementation of the Project
NVVN will tender out and award the Solar PV Plants to be set up in Andhra Pradesh out of the first tranche. The remaining capacity of Tranche-1 to be set up in other interested States will be completely bid out by December 2015. Around thirteen months subject to transmission system being built will be given for completing the projects as a definite time frame from the signing of their PPAs subject to provisions of the PPAs and guidelines of the scheme to be issued by MNRE in consultation with NTPC/NVVN.