Panchabuta was the first to report that the Solar PV and thermal developers were shortlisted for the first phase of the Solar Mission the day after the developers had to submit their revised bid to the government (NTPC Vidyut Vyapar Nigam Ltd. (NVVN) ) for the first phase of the Jawaharlal Nehru National Solar Mission (JNNSM).
The planned capacity of SolarPV is about 150MW and Solar Thermal about 470 MW for the first phase and the submission of RfP along with the discount amount from the proposed feed in tariff of Rs 17.91 for PV and Rs 15.31 for solar thermal had to be submitted by developers.
With the overwhelming response received for the first phase, NVVN first called for a RfS and those that were short listed from the same were invited to submit a RfP with a discount in tariff that they could offer along with certain big bond guarantees.
As Panchabuta has also mentioned, the government announced the list of 37 shortlisted developers for 620MW under the first phase of the national solar mission sometime in the middle of december.
Now according to reports in the media, Panchabuta understands that 36 out of 37 developers selected under the national solar mission have signed the PPA with NVVN.
The last PPA is in process of being signed, a senior company official said.
Indian Renewable Energy Development Agency (Ireda) chairman and managing director Debashish Majumdar said this was an important milestone for the Indian solar industry.
“If 36 of 37 firms see good sense in taking this step despite heavy penalties attached, I assume they have done their homework. The positive development also dispels fears in the market that companies would not come forward and sign PPAs after quoting such low tariffs,” Majumdar told Financial Chronicle.
“NVVNL has signed the power purchase agreements with solar power developers within first anniversary of launching Jawaharlal Nehru national solar mission as per targets. This shows confidence of the developers in the scheme and paves way for green power,” NVVNL chief executive officer Anil Agarwal said.
The companies were short-listed on basis of tariff discounts they proposed to offer. The selected companies have quoted extremely low tariffs.
Renewable energy secretary Deepak Gupta said the ministry has Rs 5.75 and Rs 4.82 per unit as discounts for solar PV and thermal projects respectively.
In order to ensure serious participation, government has linked amount of bid bond to be submitted by developers with the discount.
Higher the discount quoted, higher will be the bid bond submitted by developers.
NVVNL has been authorised to encash 20 per cent bank guarantee if the project is delayed by one month. In case commissioning delayed beyond three months, project developer would be required to pay NVVNL liquidated damages at the rate of Rs 1 lakh per mw everyday.
Qualified solar developers would be required to achieve financial closure within six months of signing power purchase agreements. Solar photovoltaic and thermal projects have to be commissioned within 12 and 28 months respectively, of signing PPAs.