Final Draft Guidelines for Selection of 3000 MW Grid – Connected Solar PV Power Projects under Batch-II Tranche-I “State Specific Bundling Scheme”


Phase-II, Batch-II, Tranche-I : State Specific Bundling Scheme

These guidelines are for 3000 MW. MNRE will indicate the total quantity for various States based on response received from the States. NVVN may then procure that quantity through one or more State specific tenders.

Scope of the Guidelines

The scope of these guidelines is limited to providing the necessary policy and operational framework for development of projects under the above mentioned “ State Specific Bundling Scheme”. These guidelines are independent and will have no bearing on the projects already selected under earlier schemes of NSM Phase-I & Phase-II, Batch – I.


2.1         NSM Phase-II Batch-II Tranche-I State Specific Bundling Scheme for 3000 MW Solar PV Projects 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 3000 MW Solar PV Projects to be selected under Batch-II Tranche- I of NSM Phase-II, will be implemented by NVVN on Solar Parks to be developed through association of Central and State Agencies / Land provided by State Governments or Land identified and arranged by Solar Power Developers in the respective States.

MNRE is facilitating development of 25 Solar Parks to accelerate the Solar Capacity Addition in various States. The bidder will approach the Solar Park Implementation Agency (SPIA) for allotment of land and connectivity. The SPIA shall provide the details of land and the timelines for availability, allotment, possession and connectivity for the projects before submission of bids. The SPIA will provide the Cost of Land, Annual Charges, and Connectivity Charges etc. which the developer would take into consideration in their bid.

There could be three (3) situations:

(A) Entire tendered quantity can be located in the Solar Parks in the State;

(B)  Part of tendered quantity can be located in Solar Park and part outside Solar Park; and

(C)  Entire tendered quantity can be located outside the Solar Park.

2.2         Objectives:

The main objectives of the scheme are as follows:

i.   To facilitate the scale up of solar capacity addition under NSM Phase-II and achieve economies of scale

ii.   To supplement grid power

iii. To facilitate fulfilment of RPO requirement of the obligated entities.

iv.  To facilitate speedier implementation of the new projects to be selected to meet the Phase-II target of NSM

v. Provide long term visibility and road map for solar power development enabling creation of India as manufacturing hub in the Solar PV

2.3         Mechanism of Operation:

The     3,000     MW     Solar     PV     Capacity     under     Tranche-I     will     be     set     up     based on   the   model   of   bundling   of   solar   power   with   unallocated   thermal   power   and   fixed levellised   tariffs.   The   mechanism   of   operation   of   this   model   shall   be   as   enumerated below:

1)            Minimum project size will be 10 MW. NVVN will divide the entire quantity into projects of uniform size as far as possible. NVVN may also divide the bid lot into different sized projects also to match plot sizes in the solar park or to provide fair participation. For situation B & C as given in Para 2.1 above, range of project size starting from 10 MW may be given by NVVN.

2)           The bidding will be State specific and conducted through e-bidding. It will be based on fixed   levellised   tariffs.  The   developers  will   submit   bids   quoting   a   fixed   levellised tariff  for  the  entire  project  duration  of  25  years.  They  will  then  be  committing  to sell   power   from   their   plants   to   NVVN   at   the   quoted   tariff   over   the   25   year period.

3)            The selection of bids will be done based on the tariff quoted by the bidders. Selection will be based on lowest quoted levellised tariffs. The quoted tariff cannot be higher than the Central Electricity Regulatory Commission (CERC) Approved Applicable Tariff as on the last date of receipt of financial bids by NVVN.

4)            The   bidders   will   be   free   to   avail   fiscal   incentives   like   Accelerated   Depreciation, Concessional  Customs  and  Excise  Duties,  Tax  Holidays,  etc.  as  available  for  such projects. The same will not have any bearing on comparison of bids for selection.  As equal opportunity is being provided to all bidders at the time of tendering itself, it is up to the bidders to avail various tax and other benefits.

5)            NVVN will purchase the Solar Power generated from the selected Solar PV plants at the quoted tariffs and Thermal Power at the Tariff as determined by CERC as per Regulations from time to time for power from the respective Thermal Power Plant from which power is allocated. NVVN will bundle the Solar Power with unallocated Thermal Power from Coal based stations of NTPC on 2:1 basis (2 MW of Solar with 1 MW of Thermal), and sell the Bundled Power to willing State Utilities under 25 years Power Sale Agreements (PSAs), at Weighted Average Tariff of the Solar and Thermal components plus Trading Margin of Paisa Seven (7) per kWh.

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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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