Draft Guidelines for Selection of 3000 MW Grid-connected Solar PV Power Projects under Batch-II Tranche-I State Specific Scheme

Draft Guidelines for Selection of 3000 MW Grid-connected Solar PV Power Projects under Batch-II Tranche-I State Specific Scheme

Government of India  Ministry of New and Renewable Energy – October 2014

The 1000 MW Bundling Scheme introduced under NSM Phase-I has been successful in incentivizing setting up of a large number of Solar Power Projects and minimizing the impact of tariff on the distribution companies. The proposed 3000MW Solar PV projects to be selected under Batch-II Tranche-I of NSM Phase-II scheme, will be implemented by NVVN on Solar Parks to be developed through association of central and state agencies. Under Part-I of Tranche-I, 1000 MW PV Projects would be selected for setting of projects in Solar Park to be developed by a JV Company of SECI, NEDCAP & APGENCO at Kurnool district in Andhra Pradesh.

The JV Company shall create necessary infrastructure facilities like roads, water, construction power, pooling substations etc. for speedy implementation of the solar projects. Solar Power Developers SPDs) shall enter into Implementation Support Agreement with JV Company for land & associated infrastructure. The connectivity shall be provided by STU (APTRANSCO)/CTU (PGCIL) with the provision of the STU/CTU pooling substation for the solar park. The SPD shall enter into connectivity and transmission service agreement with the STU/CTU for power evacuation through STU/CTU system.

Specifically, the selection of Grid Connected Solar PV Projects of 1000 MW total capacity shall be carried out by NVVN through a transparent, a tariff based bidding process. NVVN will purchase the power from the successful developers at their bid tariff and sell bundled power (1000 MW Solar Capacity to be bundled with unallocated 500 MW Power from NTPC Coal Station allocated by MoP) to AP Distribution Companies after adding Trading Margin and other incidental expenses. In case 100% capacity is not tied up with AP Distribution companies the remaining capacity shall be offered to Southern Region Discoms. In this regard, NVVN shall enter into suitable Power Purchase Agreement (PPA) with Solar Power Developers and Power Sale Agreement (PSA) with AP Distribution Companies/other Utilities.

Connectivity with the Grid

The Solar Power Plant should be designed for inter-connection with the 400kV/220kV/132kV  pooling /grid substation located in the solar park at voltage level of 132 kV and above through dedicated  transmission line/underground cable. The Project Developer shall submit a letter from the  APTRANSCO along with RfS confirming technical feasibility of connectivity of plant to pooling  substation and Discoms willingness to purchase of power. The developer shall not be entitled  for any deemed generation.

The arrangement of connectivity can be made by the SPD through a dedicated transmission  line / Underground cable which the SPD may construct himself or get constructed by STU or  Discom or any other agency. The entire cost of transmission including cost of construction  of line, wheeling charges, losses etc. from the project up to the interconnection point will  be borne by the Project Developer and will not be reimbursed by NVVN or met by the  STU/Discom.

The responsibility of getting connectivity and open access with the transmission system  owned by the STU will lie with the Project Developer. The transmission of power up to the point of interconnection where the metering is done shall be the responsibility of the SPD at his own cost.

D.  Domestic Content Requirement  Out of the total capacity of 1000 MW under Phase-II Batch-II Tranche-I Part-I, a capacity of 250 MW will be kept for bidding with Domestic Content Requirement (DCR).

Under DCR, the solar cells and modules used in the solar PV power plants must both be made in India.  In case of crystalline Silicon technology, all process steps and quality control measures involved in the manufacture of the Solar Cells and Modules from P-type (or N-type) wafers till final assembly of the Solar Cells into Modules shall be performed at the works of PV manufacturers in India.

The requisite P-type (or N-type) wafers and other raw materials can be imported.  In case of Thin-film technologies, the entire Modules assembly comprising of Thin-film Solar Cells shall be manufactured in India. The starting substrate (without any semiconductor junction) and other requisite raw materials can be imported.

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About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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