NG is no longer associated with Amit Patel of Green Eco Energy / Sustainable Urban Farms LLC, Irwin/Dallas, Texas, USA and anyone who chooses to do so does at their own peril and risk

Amit PatelAmit PATEL of Green Eco Energy / Sustainable Urban Farms LLC, Irwin, Texas, USA and Mumbai, India is no longer associated with NG due to unethical, untrustworthy and unprofessional business practices. Anyone who chooses to do so does at their own peril without prejudice or liability to Natural Energy Solutions Pvt Ltd (Natural Group). He does not represent our interests and is constrained from doing so in the future.

Posted in Biomass, India, Renewables | Tagged , , , , , , , , , , , , | Leave a comment

We are Investing in Solar rooftops at Rs. 7 and below per KWh as well as MW Scale Power Plants

E-mail us at info(@)natgrp.net with your project executive summary and all possible details

Posted in Commercial, Grid Connected, PV, Rooftop, Solar | Tagged , , , ,

Electric Car Batteries Just Hit A Key Price Point

US_PEV_Sales_2010_2014

U.S. plug-in electric vehicle cumulative sales have soared in the past few years, thanks in part to rapidly falling battery prices. Via Wikipedia.

Electric vehicle demand in the past five years has soared in this country. The same is true worldwide. By the end of 2014, more than 700,000 total plug-in vehicles had been sold worldwide (plug-in hybrids and pure battery electrics), up from about 400,000 at the end of 2013. As of 2015, dozens of models of electric cars and vans are available for purchase, mostly in Europe, the United States, Japan, and China.

A major reason for the rapid jump in EV sales is the rapid drop in the cost of their key component -– batteries. The energy stored in a battery is measured by kilowatt-hour (kWh). The more kWh stored, the further the car can go on one charge, so a key metric for battery economics is the cost per kWh. The lower the cost, the cheaper it is to build an electric car with a significant range.

In a major 2013 analysis, “Global EV Outlook: Understanding the Electric Vehicle Landscape to 2020,” the International Energy Agency estimated that electric vehicles would achieve cost parity with internal combustion engine vehicles when battery costs hit $300 per kWh of storage capacity. The analysis projected that would happen by 2020.

Yet a study last month in Nature Climate Change, “Rapidly falling costs of battery packs for electric vehicles” determined that “industry-wide cost estimates declined by approximately 14% annually between 2007 and 2014, from above US$1,000 per kWh to around US$410 per kWh.” The study, by Björn Nykvist and Måns Nilsson, also looked at battery electric vehicle (BEV) leaders, like Nissan’s LEAF and Tesla’s model S. They found, “the cost of battery packs used by market-leading BEV manufacturers are even lower, at US$300 per kWh.”

costs-of-batteries-evs-nykivst-and-nilsson-

So the best manufacturers have already reached the battery price needed for cost parity with conventional cars.

Last year, UBS, a leading Investment bank, found “the 3-year total cost of ownership (TCO) of a Tesla S model is similar to that of a comparable petrol combustion engine car such as an Audi A7,” in places like Germany.

ubs-EV-parity

Even more revolutionary, UBS projects that “the payback time for unsubsidised investment in electric vehicles plus rooftop solar plus battery storage will be as low as 6-8 years by 2020.” Of course, oil prices have been dropping, too (as have solar prices). The battery study from last month found that prices would need to drop under $250 per kWh for EVs to become competitive. Further, it concluded:

“If costs reach as low as $150 per kilowatt hour this means that electric vehicles will probably move beyond niche applications and begin to penetrate the market more widely, leading to a potential paradigm shift in vehicle technology.”

Can electric car batteries hit that price point? The study projects that costs will fall to some $230 per kilowatt hour in the 2017 to 2018 timeframe. Tesla Motors and Panasonic have started building a massive $5 billion plant capable of producing half a million battery packs (plus extra batteries for stationary applications) a year. It is expected to be completed in 2017. Tesla and Panasonic estimate this “Gigafactory” with 6,500 workers will lead to a 30 percent reduction in cost, which the recent Nature Climate Change study said is “a trajectory close to the trends projected in this paper.”

It may well be that $150 per kWh can be hit around 2020 without a major battery breakthrough but simply with continuing improvements in manufacturing, economies of scale, and general learning by industry. This seems especially likely if China continues its explosive growth in EV sales:

PEV_Registrations_China-638x692
Posted in Electric and Hybrid Vehicles, Renewables | Tagged , , , , , ,

Implementation of 73 MW Grid Connected Roof Top Solar PV Power Scheme in Warehouses in Selected States in India

The bidding process is under Rooftop Warehouse Scheme (RWS) – Phase-I for aggregate capacity of 73 MW. The projects shall be implemented on Build Own Operate basis which include sale of the Solar Power to the concerned state DISCOMs. Bidder can apply for projects upto the maximum aggregate bid capacity 15 MWp only as per Clause 2.4.2 of Section-I.

Bidder can submit bids under competitive bidding to avail subsidy upto Rs. 2/kWh for supplying of power to the concern DISCOMs at fixed tariff of Rs. 5.5 per kWh for 25 years for the States mentioned in Clause 2.1.4 of Section-I of RFS.

In the table of Clause 2.1.4,states are mentioned for 50MWp capacity only.For remaining 23 MWp capacity ,competitive bidding as per “a” &”b” above is applicable for the capacity proposed by the bidder as per their own choice in the covering letter.

SECI RFS FOR ROOFTOP WAREHOUSE SCHEME

Posted in Government, Grid Interactive Distributed Solar Energy Systems, India, MNRE, Renewables, Rooftop, SECI, Solar | Tagged , , , , , , , , , ,

Indian minister promises to tackle country’s acute air pollution problem, yes, its even worse than China

WHO survey finds Delhi is the most polluted city in the world, with dangerous PM2.5 levels 10 times the upper recommended limit

Air PollutionSmog covers buildings in the Indian capital, Delhi. According to an air quality index the concentration of airborne particles known as PM2.5, which are considered the most harmful, was more than 10 times the upper limit recommended by the WHO.

Smog covers buildings in the Indian capital, Delhi. According to an air quality index the concentration of airborne particles known as PM2.5, which are considered the most harmful, was more than 10 times the upper limit recommended by the WHO.

The Indian environment minister has promised to tackle his nation’s acute problem with air pollution “better than the rest of the world has ever done” amid growing domestic concern at the health impact on hundreds of millions of people living in the developing nation’s overcrowded cities.

In an interview with the Guardian, Prakash Javadekar said the government would announce India’s first nationwide “composite, comprehensive” air index this week. So far, India’s collection of pollution data has been haphazard and compares poorly with regional rival China.

The move was welcomed by experts. Sarath Guttikunda, an expert with Urban Emissions, an independent research group, said: “We have been saying that pollution is very bad and now we’ll be able to see that. It’s a first step but it’s not going to solve the problem by itself.” .

A survey released last year by the World Health Organisation (WHO) found that Delhi, the Indian capital, was the most polluted city in the world, with an annual average of 153 micrograms of the most dangerous small particulates, known as PM2.5, per cubic metre.

The level was six times the WHO’s recommended maximum, 12 times US standards and more than twice the level considered safe by Indian authorities. During the winter, when lower temperatures and fires intensify the pollution, concentrations of PM2.5s and other pollutants routinely spike much higher, reaching levels described by experts as “hazardous” for humans.

The problem is not restricted to the capital. Thirteen of the dirtiest 20 cities in the world were in India, the WHO said.

most-polluted-places-in-india

Another survey – the Environmental Preference Index – ranked India 155 out of 178 countries for air quality last year.

The local effects of the pollution are increasingly clear. The WHO has also found that India has the world’s highest rates of death from respiratory disease, with 159 per 100,000 in 2012, around 10 times that of Italy, five times that of the UK and twice that of China.

“Clean air is a birth right,” said Javedkar, the minister. “We are giving high priority to this. It has not been handled correctly over the last 10 years.”

air-pollution-in-delhiThe current Bharatiya Janata party government took power with a landslide victory at an election last year. The prime minister, Narendra Modi, campaigned on a promise of boosting India’s flagging growth and freeing industry from restrictions, including many designed to protect India’s environment. It has been unclear how Modi intends to reconcile growth with protection of India’s forests, rivers and air quality.

After being ignored by media and politicians for many years, the toxic air is now becoming a significant domestic issue.

This week, major local newspapers ran successive front page stories highlighting the problem. One reported on the impact the pollution was having on children in the capital with a previously unpublished study by scientists from one of the country’s most respected cancer research institutions.

The Indian Express newspaper said the research showed children in Delhi suffered significantly more respiratory diseases, including asthma and severe lung disorder, than a control group as well as higher levels of hypertension and hyperactivity. Diminished lung capacity in the children would probably be permanent, the authors concluded.

A survey by Greenpeace earlier this year found levels in schools – many of which are located close to roads – that were four times worse than those triggering alerts in London.

Dr Rashmi Rakshit, a 52-year-old associate professor of physics at Delhi University, said she had developed asthma which needed constant medication and and her two adult children also had respiratory problems.

“How will only monitoring help? We all know the severity of the problem. The government has to work on finding a solution, not just on highlighting a problem,” Rakshit said.

Vandana Bhalla, an interior designer from Delhi’s Shalimar Bagh neighbourhood, said her nine-year-old daughter had been recently diagnosed with symptoms of asthma.

“I was not so bothered about it before but now my daughter coughs a lot and when she gets cold she is sick for more than 15 days. Even in summer, she is affected because of this bad air,” Bhalla said.

Guttikunda said even though the new public interest and better availability of data would increase pressure on politicians, any rapid improvement would be unlikely.

“It’s really very very bad … and it’s going to get worse,” he said.

Delhi authorities rejected the findings of the WHO study, with government scientists saying the UN agency had overestimated levels in the capital. The claim that Delhi was more polluted than Beijing caused particular irritation among officials.

Yet there are limits to what Javedkar or other national level ministers can achieve. Delhi is effectively an independent state, and most of the measures that might limit pollution would have to be enacted by local elected representatives and implemented by local officials.

One problem has been successive changes of government of Delhi in recent years, which has led to a series of strategies being drawn up and then shelved.

Javadekar blamed four major factors for the particularly acute problem in Delhi: stubble burning on farmland around the capital; sandstorms blowing in from the desert state of Rajasthan to the west; the number of vehicles now on the roads in the capital; and the failure over decades to build a bypass for the 50,000 to 100,000 trucks which drive through Delhi every day to reach other destinations.

But he said similar problems existed elsewhere. “Delhi is like hundreds of other [cities] in the world. It is not an isolated example,” he said.

The city has had some success combating pollution in the past. Following a 1998 court decision, Delhi converted its bus and rickshaws to compressed national gas, which had a major impact on pollution. But Delhi’s 8,000 buses are only a small fraction of total traffic.

Between 1991 and 2011, the population of Delhi and its adjoining cities more than doubled from approximately 10 million to 22 million while the number of registered cars and motorbikes increased from 1.6m in 1991 to around 8m today.

A new metro has made little impact, experts say, as most of its users previously travelled by buses, bicycles or on foot. Car users have remained reluctant to switch to public transport.

One Indian study found that concentrations of PM2.5 (particulate matter less than 2.5 mm in diameter) could be 50% higher than usually recorded if measured close to roads. This means that drivers in Delhi in winter could be exposed to levels of the most harmful particulates that are 30 or 40 times the WHO safe limits.

The problem is compounded by construction and systematic burning of waste.

Indian authorities have done little compared with their counterparts in China, where air pollution is one of the top items on the government’s agenda since a choking smog dubbed the “airpocalypse” engulfed key Chinese cities in January 2013.

Beijing recently introduced measures to limit the number of motorists on heavily polluted days.

Under China’s newly amended environmental law, criminal penalties will be imposed on those found guilty of trying to evade pollution monitoring systems.

India is under pressure to disclose its plans to cut green house gas emissions before UN talks from 30 November to 11 December in Paris.

Delhi has so far baulked at committing itself to major cuts, arguing that it will not set itself targets that undermine efforts to end poverty.

China announced its plan to cap its emissions by about 2030 in a joint announcement with the US last November.

In January, Modi had said that though “India is an independent country and [under] no pressure … from any country or any person … when we think about the future generations, what kind of world are we going to give them, then there is pressure”.

Source: The Guardian

Posted in Climate Change, India, Pollution | Tagged , , , , , , , ,

Telangana issues RFS for procuring 2000 MW Through Solar Power Plants

Request for Selection (RFS) document for selection of Solar PV developers in the State of Telangana for procuring 2000 MW through tariff based competitive bidding process
RFS (Bid) No. TSSPDCL/01/LTSPP/2015 dated 01 April 2015

Group 1 Bids Bidders injecting into a 33/11 kV distribution Interconnection Substation  – Ceiling Tariff is Rs 6.4500/unit

Group 2 Bids Bidders injecting into a 132/33 kV or 220/132 kV or 400/220 kV Interconnection substation – Ceiling Tariff is Rs 6.3200/unit

The solar power purchased under this Bid process is targeted for consumption at 33 kV and/or lower voltages of the DISCOMS. Hence, injection at higher voltages by the Projects selected hereunder, will translate into financial impact for the DISCOMS in terms of transmission losses/charges payable to TSTRASNCO as per the applicable and prevailing regulations and/or agreements.

At the approved transmission losses of 4.02%, for every 1.000 kWh of power required at the consumption voltage level (33 kV), 1.0402 kWh of solar power needs to be procured at the EHT level. This translates into additional financial cost of about 26 paisa/kWh assuming cost of solar power as Rs 6.450/kWh. Of the above additional cost, the DISCOMs intend to recover 13 paisa/kWh (irrespective of any future variations in transmission losses) from the Group 2 Bidders injecting at EHT substations.

Hence the effective cost of procurement for the DISCOMS is different at 33/11 kV and EHT substations. Therefore the DISCOMS have set a separate Ceiling Tariff for Group 1 and Group 2 Bidders.

S. No. Event Schedule
1 Date of issue of RFS and PPA 01-Apr-15
2 Bid Document Download Start Date 01-Apr-15
3 Pre-Bid meeting 10-Apr-15
4 Revision of RFS and PPA and issue of revised RFS and PPA if any 24-Apr-15
5 Bid document download end date 14 May 2015 17:00 Hours
6 Bid  Deadline  i.e.  Last  Date  and  Time  for submission of Bids 15 May 2015 17:00 Hours
7 Submission  of  hard  copies  of  EMD  and  Bid Processing Fee 16 May 2015 17:00 Hours
8 Opening of Prequalification Bid 18-May-15
9 Opening of Technical Bids 21-May-15
10 Opening of Financial Bids 15-Jun-15
11 Issue of LoI to Successful Bidders 22-Jun-15
12 Signing of PPA 21-Jul-15

Clcik for the entire RFS Telangana Solar Tender – 2000mw – 01/01/2015

Posted in DISCOM, Grid Connected, India, Renewables, Solar, Solar Policy, Telangana | Tagged , , , , , , , , , ,

MP Power Management Company releases RFP for 150 MW Solar Power Plants

MP Power Management Company Limited. (MPPMCL) invites sealed responses from interested Companies/Partnership Firms/ Limited Liability Partnership and/or Bidding Consortium for Selection of Successful Bidder(s) for setting up of 150 MW of Solar Power Project(s) for supply of solar power for 25 years through a competitive bidding process. The minimum capacity that could be offered by the Bidders is 2MW and maximum capacity that could be offered is 150 MW.

  • Total tender Capacity: 150 MW
  • Minimum Bid : 2 MW
  • Maximum Bid   : 150 MW
  • RFP Fees: Rs 25,000/- one time .
  • Processing Fees: Non refundable Rs 1,00,000 per generating source
  • Bid Bond: Rs 20 Lakh/MW to be returned on submission of Contract Performance Guarantee (CPG)
  • CPG: Rs 30 Lakh/MW to be submitted within 30 days of Letter of Intent
  • Qualification criteria: Net worth Rs 2 cr per MW.
  • Commissioning Timeline:  Solar Project of capacity up to 25MW, commissioning  shall be within 12 months from the date of financial closure. Above 25 MW, commissioning shall be within  18  months  from  the  date  of  financial  closure
  • Technical Qualification: If  the  Capacity  offered  by  the  bidder  is  more  than  5MW,  the  bidder  should have experience of  commissioned/synchronized least 1/4th of the capacity  of  solar  projects  being  offered  or  5  MW  whichever  is  lower, either as Project  Developer  or  as  EPC  contractor.  The  successful  commissioning  of  the solar  plant  should  be certified   by  generating  certificate/commissioning certificate  issued  by  the  state  utility/SLDC  or  any other  relevant  authority.  The capacity has to be commissioned/ synchronized with  grid on or before 7 days of the  due  date  for  submission  of  response  to  the  RFP. The  Bidder  may  seek Technical capability of its Parent /Ultimate Parent and / or it’s Affiliate(s) for the purpose of meeting this Qualification. In case of consortium, at least one of the Members or its Parent / Ultimate  Parent  and  /  or  its Affiliate(s)  shall  meet  this requirement.
  • If the  Capacity bid by the bidder is less than or equal to 5MW, commissioning / synchronization experience is not required
  • Financial Closure: 6 months from PPA date
  • Pre Bid Meeting: 20thApril’15

Click below for the documents

Tenders-Tender_NIT_Solar150MW_6_29032015 Tenders-Tender_RFP_Solar_150MW_6_29032015

Posted in DISCOM, Grid Connected, India, Madhya Pradesh, Renewables, Solar | Tagged , , , , , , , ,

Dirty power: Sweden wants your garbage for energy

Trash is a fast-growing import in the Scandinavian country, which turns it into heat for people’s homes

A garbage dump in Göteborg, Sweden.

A garbage dump in Göteborg, Sweden.
Martin Almqvist / Johnér Images / Corbis

Every day, some 300 trucks arrive at a plant outside the city of Göteborg on the west coast of Sweden. They carry garbage, but they are not there to dump the cargo. Instead, they deliver it to the plant’s special ovens, which burn it, providing heat to thousands of local homes.

“The only fuel we use is waste,” says Christian Löwhagen, a spokesman for Renova, the local government-owned energy company operating the plant. “It provides one-third of heat for households in this region.” Across Sweden, 950,000 homes are heated by trash; this lowly resource also provides electricity for 260,000 homes across the country, according to statistics from Avfall Sverige, Sweden’s national waste-management association.

With Swedes recycling almost half (47 percent) of their waste and using 52 percent to generate heat, less than 1 percent of garbage now ends up in the dump. “Sweden has the world’s best network of district heating plants” — essentially large ovens that use a variety of fuels to generate heat, which is then transported to consumers’ homes through a network of underground pipes — “and they’re well-suited for use of garbage,” says Adis Dzebo, an energy expert at the Stockholm Environment Institute. “By contrast, in many other countries the heat and electricity infrastructure is based on gas or other fossil fuels, so it’s not economical to start building plants that utilize garbage.”

Here’s the problem: Swedes (as well as Germans, Danes, the Dutch and Belgians) have become so good at recycling that there’s no longer enough garbage to meet the heating plants’ needs. Sweden now has to import the trash that most other countries are trying to dispose of — some 800,000 tons in 2014, up from 550,000 tons in 2010, according to Avfall Sverige.

Last year Renova brought in 100,000 tons of foreign garbage, mostly from Britain, in addition to the 435,000 tons supplied by Swedish municipalities. In Stockholm, energy provider Fortum also imports garbage, and in the southern city of Malmö, the Sysav energy company brought in 135,000 tons of waste from Norway and Britain last year, according to the company’s communications director, Gunilla Carlsson. That’s an almost 100 percent leap from the year before.

“We try to stay up to date on where well-sorted garbage is available,” says Löwhagen. “We only use waste where all recyclable bits have been taken out. In Europe, enormous amounts of garbage are put in landfill, so we’re doing other countries a favor by taking care of it for them.” In order to minimize cost and environmental impact, companies try to get a cheap ride for their garbage on ships going to Sweden that would otherwise have empty holds.

You wouldn’t believe how many emails we get every week from people offering us garbage.

Weine Wiqvist

CEO of Sweden’s waste-management association

It’s not that Swedish decision-makers foresaw the need to safely dispose of garbage when they started building a countrywide network of district heating plants a generation ago, but it turned out to be a fortuitous move when public concern over trash in landfills prompted the country to rethink its garbage-disposal policies. Today putting waste on the trash heap is banned, which means that municipalities have to sort, recycle and, yes, burn, their residents’ garbage. As a result, waste now constitutes 19 percent of the fuel used by district-heating plants, which heat half of Sweden’s households and also use biomass such as leftover tree branches from the logging industry. That makes Sweden the world leader in energy generated from garbage; it is followed by, in order, the Czech Republic, Denmark, Norway and Finland.

Using garbage for energy neatly solves the issue of excessive reliance on landfills while at the same time helping address residents’ energy and heating needs. And as Sysav, Renova and district-heating operators are owned by the cities they serve, they have an obligation to use waste. Not that it’s a heavy burden: The energy companies get the resource for free and sell the resulting heat and electricity. Measured by the volume of garbage used to produce energy, the United States — not surprisingly, given its much larger population — tops the list, with 29 million tons. Still, that’s just 12 percent of the waste generated by Americans.

This is how the waste-to-energy process works: After recyclable content has been removed, the garbage is placed in incinerators that produce heat or energy, which is then transported to nearby homes. From the ashes, small pieces of metal, which do not burn, are separated and recycled, while those of porcelain and tile are sifted to extract gravel, which is used in road construction. The remaining one percent goes into landfills. And though garbage-infused smoke sounds highly poisonous, thanks to electric filters that give the particles a negative electric charge, in Sweden the smoke is almost entirely nontoxic carbon dioxide and water, which are cleaned again before release. “I know that district heating means they burn garbage, but it’s not something I pay any attention to,” says Göteborg resident Karin Fjellander. “The thing about district heating is that it’s supposed to be green, so if the smoke was poisonous I don’t think they’d keep doing it.”

Because waste in landfills generates methane, a concentrated form of CO2, the Swedish municipal association estimates that every ton of imported garbage — which would otherwise have been decomposing in landfills — saves 1,100 pounds of CO2 equivalent. Even if ships were to travel specifically to deliver this garbage, the trade would still end up a net positive for the environment.

“You wouldn’t believe how many emails we get every week from people offering us garbage,” says Weine Wiqvist, CEO of Avfall Sverige.

For now, Sweden imports its trash mostly from Britain and Norway. According to Löwhagen, “But since our trading partners pay us to dispose of their garbage, we prefer to say that we’re exporting a service” — waste disposal. Either way, Sweden’s garbage needs are skyrocketing: According to Avfall Sverige, the country will import 1.5 million tons of waste this year and 2.3 million tons in 2020. But with recycling rates increasing, the European Union has advised its member states to start building district-heating facilities that can also produce energy. Delegations from various countries including Poland, India and China now regularly visit Sweden to learn about garbage heat and energy.

Waste being unloaded in Göteborg for transport to the Renova plant.

Waste being unloaded in Göteborg for transport to the Renova plant.
Courtesy Lars Ardarve via Renova

Austrians and Germans already recycle more than 60 percent of their garbage, while other Western European countries are not far behind. Meanwhile, the EU has commanded every member state to reach 50 percent by 2020. In the United States, 34 percent of trash is now recycled, up from 10 percent in 2000, according to the Environmental Protection Agency. “From a climate perspective, it’s better to burn garbage for heat and energy than putting it in landfill,” notes Dzebo. “But if everyone begins to use garbage for energy, there won’t be enough of it.”

A most unusual dilemma, then, compounded by the fact that garbage is so voluminous and prone to smelliness that transporting it from the other side of the globe would be expensive and impractical. “The Netherlands imports some from Italy, but in contrast to oil and gas, it’s not a good you can ship around the globe,” says Wiqvist. Still, Löwhagen and his colleagues hope that Sweden’s pioneer status will help it keep ahead of the pack. Developing countries, for their part, may get access to funding from the United Nations-affiliated Green Climate Fund should they decide to invest in waste-to-energy plants. “The Green Climate Fund is currently developing its investment framework, and one of the issues the members are discussing is whether waste-to-energy should receive climate funding as a renewable energy source,” explains Dzebo. “But it’s important that this model goes hand in hand with efficient sorting of the garbage, including the removal of recyclable and toxic material.” Developing countries will, in other words, have to show the Green Climate Fund that they don’t just plan to burn their waste wholesale but are also making serious efforts to reduce it.

Winqvist says he is not concerned about consumers’ increasingly diligent recycling, even though it reduces the volume of waste available for energy production. “After a couple of recycling rounds, paper can’t be reused again, so you have to burn it,” he explains. “And putting garbage in landfill will always be cheaper than burning it. Even with people recycling more, there’s going to be plenty of waste for heating and energy plants.”

Source: Al Jazeera

Posted in Climate Change, Pollution, Power Generation, Waste, Waste To Energy | Tagged , , , ,

Implementation of Project for setting up of 15,000 MW of Grid-connected Solar PV Power plants through NTPC Ltd. / NTPC Vidyut Vyapar Nigam Limited (NVVN) under National Solar Mission

The scheme will be implemented through the NTPC / NVVN (the power trading arm of NTPC Limited) under Ministry of Power. The scheme envisages setting up of Grid-connected solar PV power plants of 15,000 MW aggregate capacity in three tranches:

Tranche-I: 3,000 MW: 2014-15 to 2016-17

Tranche-II: 5,000 MW: 2015-16 to 2017-18

Tranche-III: 7,000 MW:  2016-17 to 2018-19

These projects will be developed through project developers who may be from private or public sector. NTPC is also setting up some solar plants on their own as generator or owner. This proposal does not include NTPC’s own solar power plants.

2.1    In Tranche-I, which will be Batch-II of Phase-II of National Solar Mission, 3000 MW capacity of 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 bundled power will be allotted to various States that come forward to (i) provide land for setting up the solar power projects and (ii) purchase a major portion of the bundled solar power for consumption within the State (iii) ensure connectivity to the solar power project.  The capacity allotted to each such State will be set up through developers, to be selected through international competitive bidding by NTPC /NVVN. Both private and government companies would be free to bid for projects.

2.2        1000 MW capacity out of the 3000 MW under the bundling scheme will be set up on land already identified in Andhra Pradesh. The balance 2000 MW capacity under the Bundling Scheme will be allotted in other interested States that come forward.

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

(i) The eligible plant capacities will be minimum 10 MW and maximum may be fixed for each State Lot of projects on the basis of size of the lot, land availability and requirement. The plant capacities will therefore differ from State to State between these limits.

(ii) The bidding will be State specific and conducted through e-bidding. NVVN/NTPC will develop detailed guidelines for 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 NTPC /NVV N at the quoted tariff over the 25 year period.

(iii) There will be State specific tenders. 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 tariff bid cannot be higher than the Applicable Tariff on the day bids are received as may be fixed by the State Electricity Regulatory Commission (SERC) for the State where the projects are to be set up/ Central Electricity Regulatory Commission (CERC). Once agreed, then the tariff will be applicable  for 25 years and cannot be changed by the State Electricity Regulatory Commission for this period.

(iv) The bidders will be free to avail fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays, etc. 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 upto the bidders to avail various tax and other benefits.

(v) Solar power generated from the selected plants shall be purchased directly by NTPC / NVVN at the quoted tariffs. NTPC / NVVN will bundle this 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 their proposed trading margin of Rs.0.07/kWh, which is expected to be attractive for the utilities. The tariff for thermal power component will be as per rates fixed by CERC for power from the respective thermal power plant from which power is allotted.

(vi) The developers will be free to reconfigure and repower their plants from time to time during the PPA duration. However, the NTPC / NVVN will be obliged to buy power only within the Capacity Utilisation Factor (CUF) range laid down in Power Purchase Agreement (PPA) as per guidelines. Excess power generated whether in normal course or through repowering will be purchased at a notional support price of Rs.3/kWh only. It will be at the option of the developer to offer it (excess power) to NTPC/ NVVN or sell in open market. Further, the developer will be free to sell power to any one for period beyond 25 years of firm PPA offered by NTPC/ NVVN.

2.4    MNRE will devise suitable mechanism for implementation of 12,000 MW capacity Solar PV projects under Tranche-II and Tranche-III keeping minimum support from the Government, to be determined after getting some experience while implementing Tranche-I. This Government support could be in the form of low cost long-tenure loans or other means.

The time period indicated for these tranches can be fast tracked by MNRE based on experience of Tranche-I.

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