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

Click here for the entire document

Posted in Batch I, Batch II, Government, Grid Connected, India, JNNSM, Manufacturing, Ministry of Power, NTPC, NVVN, Phase I, Phase II, Power Generation, PV, Renewables, Solar, Solar Parks, Solar Policy, Tranche I, Transmission and Distribution | Tagged , , , , , , , , , , , , , , , , , , , , ,

Maharashtra Solar Policy finally catches up with the rest of India on Solar Rooftops – MERC issues draft guidelines for Rooftop Net Metering

PART A – GENERAL

  1. General Conditions of Net Metering arrangement

3.1.  Net Metering arrangement shall be permitted by the Distribution Licensee on a non- discriminatory and ‘first come, first serve’ basis to the Eligible Consumer who intends to install a Rooftop Solar system connected to the network of Distribution Licensee;

Provided that the interconnection of such system with the network of the Distribution Licensee is undertaken in accordance with the standards and norms specified in the Central Electricity Authority (CEA) (Technical Standard for Connectivity of the Distributed Generation Resources) Regulations, 2013.

  1. Capacity limits at Distribution Transformer level

4.1.   The Distribution Licensee shall allow Net Metering arrangement to Eligible Consumers so long as the cumulative capacity utilized at a particular distribution transformer does not exceed 15% of the rated capacity of that distribution transformer;

Provided that the Distribution Licensee may allow Net Metering connectivity exceeding 15% of such rated capacity based on a detailed load study carried out by it.

4.2.  The Distribution Licensee shall provide yearly, on its website and to the Commission, information regarding the distribution transformer level capacity available for connecting Rooftop Solar system under Net Metering arrangements.

PART B – TECHNICAL ARRANGEMENTS

  1. Eligible Consumer and individual project capacity

5.1.  All the Eligible Consumers in the area of supply of the Distribution Licensee may participate in the Rooftop Solar Net Metering arrangement.

5.2.   The maximum Rooftop Solar system capacity to be installed at any Eligible Consumer’s premises shall be governed by the available capacity of the service line connections of the Eligible Consumer’s premises and the cumulative capacity utilized at particular distribution transformer as per Regulation 4.1 of above;

Provided that the capacity of the Rooftop Solar system to be connected at Eligible Consumer’s premises shall not exceed his Contract Demand or connected load of the Eligible Consumer to be read with Regulation 4.1 of above.

5.3.  The capacity limits for the connectivity of Rooftop Solar system to the network of Distribution Licensee  under these Regulations shall be as defined in Regulation 5.3 of the MERC (Standards of Performance of Distribution Licensee, Period of giving Supply and Determination of Compensation) Regulations, 2014, which are as follows:

Sr. No. Voltage level Threshold limit of Rooftop Solar PV system
1 230/240 V (1 Ф) Less than 8 kW/40 A
2 400/415 V (3 Ф) Less than 80kW/100 kVALess than 150kW/187 kVA (MunicipalCorporation areas)
3 11kV and above Up to 1000 kVAUp to 1000 kVA (Mumbai Metropolitan Region)

 

  1. Interconnection with the Distribution Network / Grid, Standards and Safety

6.1.   The Distribution Licensee shall ensure that the interconnection of the Rooftop Solar system with its network conforms to the specifications, standard and other provisions specified in the CEA (Technical Standard for connectivity of the Distributed Generation Resources) Regulations, 2013 and CEA ( Measures relating Safety and Electric supply), Regulations, 2010 and the MERC (State Grid Code) Regulations,2006.

6.2.   The Eligible Consumer may install Rooftop Solar system with or without battery back- up;

Provided that, if the Eligible Consumer prefers connectivity with battery back-up, the inverter shall have a separate back-up wiring to prevent the battery/ decentralized generation (DG) power from flowing into the grid in the absence of grid supply, both automatic and manual isolation switch shall also be provided.

6.3.  The Eligible Consumer shall be responsible for the safe operation, maintenance and rectification of any defect of the Solar Rooftop system upto the point of Net Meter, beyond which point the responsibility of safe operation, maintenance and rectification of any defect in the system, including the Net Meter, shall rest with the concerned Distribution Licensee.

6.4.   The Distribution Licensee shall have the right to disconnect the Rooftop Solar system at any time in the event of any threat of accident or damage from such system to its distribution system.

6.5.   The Distribution Licensee and Eligible Consumer shall comply with all necessary roles and responsibilities as specified in the relevant CEA Regulations.

  1. Metering Arrangement

7.1.   Net  metering  arrangement  shall  have  two  meters  including  one  bi-directional  meter which is also known as Net Meter. The Net Meter will be single phase or three phase as per the requirement. All the meters shall adhere to the Standards as specified in CEA (Installation and Operation of meters) Regulations 2006, and subsequent amendments thereof.

7.2.  The Net Meter and all other meters in the premises of the Eligible Consumer shall be procured and installed by the Distribution Licensee as per the provisions of MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005. The Distribution Licensee shall be responsible for specifications, supply, installation, testing and maintenance of the metering arrangement.

Provided that in case of existing Eligible Consumer, the Distribution Licensee shall replace the existing meter of Eligible Consumer with Net Meter.

However, if the Eligible Consumer wishes to procure all the meters including Net Meter, he may procure such meters and present the same to the Distribution Licensee for testing and installation.

7.3.   The  location  of  Net  Meter  shall  be  at  the  point  of  interconnection  which  shall  be ascertained by the Distribution Licensee.  The Distribution Licensee shall also install another meter known as solar generation meter at appropriate location to measure the total units generated from Rooftop Solar system.

7.4.  All meters, including the Net Meter shall be installed at an accessible location in the premises of Eligible Consumer to facilitate easy access to the Distribution Licensee for meter reading.

  1. Procedure for Application and Registration

8.1.   The  Eligible  Consumer  shall  submit  the  application  to  the  concerned  Distribution Licensee for connectivity of Rooftop Solar system with the distribution network of the concerned Distribution Licensee in the prescribed format along with registration fee of Rs. 1000/-.The concerned Distribution Licensee shall acknowledge the receipt of application.

 

 

8.2.   The  model  application  form  along  with  checklist,  to  be  submitted  by  the  Eligible Consumer  to  the  concerned  Distribution  Licensee  for  connectivity of  Rooftop  Solar system with the distribution network under these Regulations is provided as Annexure-1 with these Regulations.

  1. Net metering connection agreement

9.1.   The  Distribution  Licensee  and  Eligible  Consumer  shall  enter  into  a  Net  metering connection agreement after providing approval for connectivity of Rooftop Solar system with the distribution network under these Regulations but before starting the actual generation from the Solar Roof top system installed by the Eligible Consumer.

9.2.  The model Net metering connection agreement is provided as Annexure-2 with these Regulations. The Distribution Licensee shall make available all the forms, Net metering connection agreement and procedure on its website and also in its local offices.

9.3.   The Eligible Consumer may terminate the agreement at any time by giving 30 days prior written notice to the Distribution Licensee. The Distribution Licensee may terminate the agreement with 30 days prior written notice, if Eligible Consumer breaches any term of the agreement and does not remedy the breach within 30 days of receiving written notice from the Distribution Licensee of the breach or any other valid reason to be recorded in writing.

9.4.   Eligible Consumer, upon termination of the agreement, shall disconnect forthwith its Rooftop Solar PV system from Distribution Licensee’s network.

PART C – COMMERCIAL ARRANGEMENT

  1. Energy Accounting and Settlement

10.1. The accounting of electricity exported and imported by the Eligible Consumer  shall become effective from the date of connectivity of Rooftop Solar System with the distribution network under these Regulations.

10.2.  For each billing period, the Distribution Licensee shall show separately; a)   the quantum of units of electricity exported by Eligible Consumer, b)  the quantum of units of electricity imported by Eligible Consumer, c) the Net units of electricity billed for payment to the Eligible Consumer and d) the Net units of electricity carried over to the next billing period

Provided that in the event, the units of the electricity exported exceeds the units of electricity imported during the billing period, such excess units of electricity exported shall be carried forward to the next billing period as credited units of electricity.

Provided that in the event, the units of electricity imported by the Eligible Consumer during any billing period exceeds the units of electricity exported by the Eligible Consumer’s Rooftop Solar system, the Distribution Licensee shall raise invoice for the Net electricity consumption after taking into account credited units of electricity.

Provided that at the end of each financial year, unadjusted net credited units of electricity limited to 10% of total units generated during the year by the Eligible Consumer,  shall  be  purchased  by  the  Distribution  Licensee  at  the  Commission’s approved Average cost of Power Purchase of the Distribution Licensee for respective year.

Provided that any unadjusted net credited units of electricity above 10% of total units generated during the year by the Eligible Consumer shall be treated as unwanted / inadvertent injunction and no payment for the same shall be made by the Distribution Licensee.

Provided that at the beginning of each settlement period, cumulative carried over injected electricity will be reset to zero.

10.3. In case of any dispute in billing it would be settled as per Consumer Grievance Redressal mechanism under MERC (Consumer Grievance Redressal Forum & Ombudsman) Regulations, 2006.

11. Solar Renewable Purchase Obligation

11.1. The quantum of electricity consumed by the Eligible Consumer, who is not defined as Obligated Entity, from the Rooftop Solar system under net metering arrangement shall qualify towards compliance of Solar Renewable Purchase Obligation (Solar RPO) for the concerned Distribution Licensee.

 Provided that the Distribution Licensee with consent of Eligible Consumer, shall make all the necessary arrangements including additional metering arrangement if any, for accounting of total solar energy generated and total solar energy consumed by the Eligible Consumer.

11.2. The unadjusted surplus units of solar energy purchased by Distribution Licensee as per the provision in Regulation 10.2 shall be considered as eligible renewable energy and the Distribution Licensee would be able to meet its Solar Renewable Purchase Obligations through purchase of such surplus units of solar energy

  1. Eligibility to Participate under Renewable Energy Certificate (REC) Mechanism

12.1 Eligible Consumer under net metering arrangement shall not be eligible to participate under REC mechanism as specified under Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010.

  1. Subsidy or incentives of the Central / State Government:

13.1  The Eligible Consumer can avail subsidy or incentives if offered by the Central / State Government on the capital cost of the Rooftop Solar PV system. Maharashtra Energy Development Agency (MEDA) will be the Nodal Agency for processing such subsidy or incentives of the Central / State Government.

Posted in Commercial, DISCOM, Grid Connected, Grid Interactive Distributed Solar Energy Systems, Net Metering, Renewables, Residential, Rooftop, Solar, Solar Policy, Transmission and Distribution | Tagged , , , , , , , , , , ,

Final Draft Guidelines for Selection of 3000 MW Grid – Connected Solar PV Power Projects under Batch-II

National Solar Mission 

Phase-II (2013-17)

Guidelines for Selection of 3000 MW Grid – Connected Solar PV Power Projects under Batch-II

State Specific Bundling Scheme”

Government of India

Ministry of New and Renewable Energy

January 2015

Click here for the Final Draft document

SECTION-I

1.0          Preamble

BACKGROUND AND INTRODUCTION

The  National  Solar  Mission  (NSM)  launched  in  January  2010  is  a  major  initiative  of the Government of India (GoI) with active participation from States to promote utilization of solar energy to supplement the country’s energy needs. It aims at establishing India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible. The Mission had set a goal, amongst others, for deployment of 20,000 MW grid connected solar power capacity by 2022 in 3 phases (1000 MW in first phase up to 2012-13 -, 9000MW in second phase from 2013 to 2017 and 10,000 MW in third phase from 2017 to 2022). GoI is working on substantially scaling up these targets through consultations with the various Stakeholders.

In order to facilitate grid connected solar power generation in the first phase, a mechanism of “bundling” relatively expensive solar power with thermal power from the unallocated quota of the Government of India (Ministry of Power) generated at NTPC coal based stations, which is relatively  cheaper,  and  onward  sale  of  the  bundled  power  to Distribution  Utilities  at  an affordable price, was adopted. A scheme for selection of 1000 MW Grid-connected solar power projects based on this Mechanism was implemented through NTPC Vidyut Vyapar Nigam Limited (NVVN). In the second phase, it is envisaged to select solar power projects under various Central Schemes. These include the Viability Gap Funding scheme for Batch -I of 750 MW capacity Solar PV projects that has already been introduced and is being implemented through Solar Energy Corporation of India (SECI).

1.1          Status and achievement against 1000 MW Capacity Grid-Connected Solar Power Projects under Phase-I Bundling Scheme implemented through NVVN:

Solar PV as well as Solar Thermal power projects with an aggregate capacity of 970 MW (besides 84 MW selected under Migration Scheme) were selected in two batches (Batch-I during 2010-11 and Batch- II during 2011-12) through a process of tariff based reverse bidding. The resulting tariffs in Batch-I for SPV projects ranged between Rs.10.95 and Rs.12.76 per unit, with average of Rs.12.12 per unit and for Solar Thermal Projects the tariff ranged between Rs.10.49 and Rs.12.24 per unit, with average tariff being Rs.11.48 per unit. In Batch-II, for Solar PV Projects, the tariff ranged between Rs.7.49 and Rs.9.44 per unit, with average tariff being Rs.8.77 per unit. The Solar Power from these plants is being purchased by NVVN and is being sold to Distribution Util ities/ Discoms  after  bundling  with  power  from  the  unallocated  quota  of  power  from  Coal  Based Stations of NTPC on equal capacity (MW) basis, thus effectively reducing the average per unit cost of solar power. A total capacity of 718 MW has been commissioned so far under Phase-1.

1.2          Phase-II Batch-I: 750 MW Viability Gap Funding (VGF) Scheme:

This scheme for setting up of 750MW of Grid Connected Solar PV Projects with VGF support from National Clean Energy Fund (NCEF) is being implemented through Solar Energy C orporation of India (SECI). It entails purchase of power from developers at a fixed tariff of Rs.5.45/ unit (Rs.4.75/unit in case benefit of Accelerated Depreciation is availed) and payment of VGF to the developers  as  per  their  bids,  limited to a maximum  of  Rs.2.5crore/MW).  Bids  for  the  same (reverse bidding on the VGF) were invited by SECI in October, 2013 in two Categories: 375MW Capacity  under  Domestic  Content  Requirement  (DCR)  and  375  MW  Capacity  under  Open Category. Power Purchase Agreements with the successful bidders / developers have since been signed in March 2014. The Projects have a Schedule of Commissioning of 13 Months from the Date of Signing of PPA.

1.3          Phase-II Batch-II Scheme:

1.3.1     MNRE now proposes to add a total Solar PV capacity of 3,000 MW to be implemented through NVVN as part of Phase-II. The scheme envisages setting up of Grid-connected solar PV power plants of 3,000 MW aggregate capacity through open competitive bidding.

1.3.2      Phase-II, Batch-II : 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 projec ts already selected under earlier schemes of NSM Phase-I & Phase-II, Batch – I.

SECTION-II

2.1         NSM Phase-II Batch-II 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 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:

  1. To facilitate the scale  up of solar capacity addition under  NSM Phase-II and achieve economies of scale
  2. To supplement grid power

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

  1. To facilitate speedier implementation of the new projects to be selected to meet the Phase-II target of NSM;
  2. Provide long term visibility and road map for solar power development enabling creation of India as manufacturing hub in the Solar P

2.3         Mechanism of Operation:

The 3,000 MW Solar PV Capacity will be set up based on the 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:

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 levelised tariffs.  The  developers  will   submit bids quoting a fixed   levelised 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. No claim shall arise on NVVN for any liability if bidders are not able to avail fiscal incentives and this will not have any bearing on the discovered tariff.

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. The weighted average of tariff will be separately calculated for each State for the Solar Power.

2.4         Solar PV Projects

MNRE will fix the lot size for each state out of the 3000 MW and define the quantum of “DCR” in each lot. Thereafter, NVVN will issue Request for Selection (RfS) in one or more than one Lot as per the preparedness in the Solar Park in that State and acceptance of the State/ Discom to buy the power.

This  scheme  provides  for  deployment  of  only  Solar  PV  Technology  Projects. However,  the selection of projects would be technology agnostic and crystalline silicon or thin film or CPV, with or without trackers can be installed.

Under the scheme, the developer has the option of  Leasing Solar Plant equipments from Foreign parent/affiliate.

Click here for the Final Draft document

Posted in Climate Change, Grid Connected, Grid Interactive Distributed Solar Energy Systems, India, MNRE, Renewables, Solar, Solar Parks | Tagged , , , , , , , , , , ,

Revised Draft Guidelines for Implementation of Scheme for setting up of 2000 MW Grid-connected Solar PV Power Projects under JNNSM, Batch-III “State Specific VGF Scheme”

Revised Draft Guidelines for Implementation of Scheme for setting up of 2000 MW Grid-connected Solar PV Power Projects under JNNSM, Batch-III “State Specific VGF Scheme”

Phase-II, Batch-III: State Specific VGF Scheme

The Solar Projects of 2000 MW Capacity under the State Specific VGF Scheme will be set up in the Solar Parks of various states, to be developed through coordinated efforts of Central and State Agencies. As implementation of solar parks have begun recently, it could be possible that Solar Parks in some of the States do not become available  soon.  For such States,  Solar  Projects would be  allowed  to  be  located outside solar parks with land being provided either by the State Government, or arranged by the Solar Power Developers (SPDs).

These Guidelines shall form the basis for Selection of Grid Connected Solar PV Projects under this Scheme. Out of the total capacity of 2000 MW, a capacity of 250 MW will be earmarked for bidding with Domestic Content Requirement (DCR).

MNRE shall specify the total State-wise Capacity of the Projects (both “Open Category” and “DCR Category”) based on commitments from the State for off take of not less than 90% of the Capacity to be invited by SECI before issue of Request for Selection (RfS). SECI shall tie up for the remaining capacity with the other Buying Entities for which the Host State shall facilitate Inter-State transfer of power.

1.7     Mechanism of Viability Gap Funding (VGF) in the Scheme

This scheme envisages providing Viability Gap Funding through SECI to the bidders selected through a transparent bidding process to procure solar power at a pre- determined fixed tariff. The salient feature of the overall mechanism would be as follows:

a) The tariff payable to the Project developer is fixed at Rs.5.43/ kWh for the initial year and then escalated annually by 0.05/ kWh for next 20 years, resulting in the maximum allowable tariff of Rs 6.43 / kWh at the end of 21st year. The tariff would thereafter, remain fixed at Rs. 6.43/kWh. The levelized tariff for the term of the Power Purchase Agreement thus becomes Rs. 5.79/kWh. 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. No claim shall arise on SECI for any liability if bidders are not able to avail fiscal incentives and this will not have any bearing on the applicable tariff.

b) The Project developer will be provided a viability gap funding based on his bid. The upper limit for VGF is kept at Rs.1.0 Cr/MW for open category (Rs. 1.31 Cr./MW for projects in DCR category). 

c) The Project developer has to infuse capital in the form of his own Equity for an amount of at least Rs. 1.2 Cr. /MW.  The remaining amount can be raised as loan by the developer.

d) The VGF  when  paid  by  the  SECI  may  be  used  to  return  part  of  the  loan  or developer contribution (in excess of 1.2 Cr. /MW) or a combination thereof as the case may be, in case investments have already been made. SECI will issue a letter confirming sanction/ grant of VGF at the time of signing of Power Purchase Agreement  (PPA),  so that  the  Project  developer  is  able  to  achieve  financial closure for full amount, if required.

e) The VGF will be released in six 50% on successful commissioning of the full capacity of the project (COD) and the balance 50% progressively over next 5 years subject  to  the  project meeting  generation  requirements  (CUF within specified range as per Clause 3.15.1), as under:

§ End of 1st  Year from COD – 10%
§ End of 2nd Year from COD – 10%
§ End of 3rd  Year from COD – 10%
§ End of 4th  Year from COD – 10%
§ End of 5th  Year from COD – 10%

If the project fails to generate any power continuously for any 1 year within 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis and if not paid by the developer then a claim on assets equal to the value of VGF released, on pro-rata basis as specified hereunder:

Year of default(From COD) SECI’s right to refund of VGF/ claim on assets(% of VGF paid)
Up to 5 years 100%
5-6 years 90%
6-7 years 80%
7-8 years 70%
8-9 years 60%
9-10 years 50%
10-11 years 40%
11-12 years 30%
12-13 years 25%
13-14 years 23%
14-15 years 21%
15-16 years 19%
16-17 years 17%
17-18 years 15%
18-19 years 13%
19-20 years 11%
20-21 years 9%
21-22 years 7%
22-23 years 5%
23-24 years 3%
24-25 years 1%

g) If the project is transferred or sold to a third party during its tenure (after initial lock-in period of 1 year), SECI will retain full rights to operationalize the PPA with the third party, which will be under full obligation to honour all the obligations and terms & conditions of the PPA.

h) Solar  Power   Developers (SPDs) and SECI shall enter into suitable VGF Securitization Agreement creating a charge over the Project assets in favour of SECI along with signing of PPA. SECI shall have a second charge over the Project assets in case of Projects being financed by lending institutions. In all other cases, SECI shall have the first charge over the Project assets to the extent of 110% of the VGF amount

i) In case the lending institution exercises its right to step in or take over the project, SECI will also have right to step in along with the lending institution to reclaim VGF in accordance with sub-clause (f) above or handover the project to another party for operation

1.8   Total Capacity and Portfolio of Solar PV Technology Projects

1.8.1    The total aggregated capacity of the grid connected solar power projects to be set up by Solar Power Developers on Build-Own-Operate (BOO) basis under Viability Gap Funding scheme in Phase-II, Batch-III of JNNSM shall be 2000 MW. The projects to be selected under this scheme provide for deployment of Solar PV Technology. However, the selection of projects would be technology agnostic and crystalline silicon or thin film or CPV, with or without trackers can be installed.

1.8.2    Already commissioned projects cannot be considered under this scheme. Projects under construction or projects which are not yet commissioned will, however, be considered, in case these projects are not already accepted under any other Central or State Schemes. Enhancement and augmentation of existing Projects irrespective of their capacities will not be considered as eligible Project under this scheme.

1.9      Implementation Agency

1.9.1    Solar Energy Corporation of India (SECI) will be the nodal agency for implementation of this Scheme. A fund handling charge @1% of the total VGF disbursed shall be payable to SECI out of the sanctioned VGF. SECI will develop a suitable monitoring mechanism, conduct review meetings, conduct studies to analyse the performance of the projects, carry  out  random checks  to verify  compliance of quality standards and additionally the  compliance of DCR for  DCR Category. No separate funding shall  be provided by MNRE to SECI for these  activities.

Click here for the entire document

Draft-VGF_2000 MW_Guidelines_for-grid-solar-power-projects

Posted in Climate Change, Crystalline, Government, Grid Interactive Distributed Solar Energy Systems, India, MNRE, Renewables, Solar, Solar Policy, Thin Film, Transmission and Distribution, VGF | Tagged , , , , , , , ,

Uttar Pradesh – Request for Proposal (RfP) For Procurement of 215 MW Power From Grid Connect Solar PV Power Projects Through Tariff Based Competitive Bidding Process

Request for Proposal (RfP)
For
Procurement of 215 MW Power
From
Grid Connect Solar PV Power Projects
Through
Tariff Based Competitive Bidding Process

RfPNo: 01/UPNEDS/GRID Connect/RfP/2015
Dated:31.01.2015

Issued By:
Uttar Pradesh New and Renewable Energy Development Agency, (UPNEDA)

UPNEDA will support setting up of Grid connected 215 MW Solar PV Power stations if established in Uttar Pradesh for the direct sale of power to UPPCL. UPNEDA on behalf of UPPCL, will select solar powerproducer for setting up of minimum 5 MW capacity Solar PV Power Plants (total capacity 215 MW) and the maximum capacity of the Project shall be up to 100 MW. The plant capacity shall remain in multiples of 5 MW.

The total capacity of Solar PV Projects to be allocated to a Company including its Parent, Affiliate or Ultimate Parent or any Group Company shall be limited to 100 MW.

UPNEDA on behalf of Uttar Pradesh Power Corporation Ltd. (UPPCL), Lucknow – a Company incorporated in India and registered under the Companies Act, 1956will select the Solar PV Power Project Developers, and UPPCL will sign the Power Purchase Agreement (PPA) with the Successful Bidder.

Tariff

PPA will be signed between Procurer and Successful Bidder(s).The Procurer shall pay to the Seller(s) the Quoted Tariff which has been arrived from the single tariff quoted by the successful bidder in the price bid, as per the terms and conditions of the PPA enclosed as Enclosure 1 of Format 4.10. The bidder should quote a tariff below the UPNEDA approved ceiling tariff of Rs. 9.33/kWh. The tariff quoted above the ceiling tariff shall not be accepted. The tariff shall be payable by the Procurer in Indian Rupees.

Click below for the complete documents

1_-_PPA_dt__30.1.2015final

2_-_Escrow_Agreement__25.01.15

3-_Hypothecate__25.01.15

RfP_for_215_MW_solar_Power_30.1.2015final

Posted in DISCOM, Grid Connected, India, PV, Renewables, Solar, Solar Policy, Transmission and Distribution, Uttar Pradesh | Tagged , , , , , , , , , , , , ,

Guidelines for Empanelment of Channel Partners / Agencies and Entrepreneur under ‘Grid Connected Rooftop and Small Solar Power Plants Programme’

Guidelines for Empanelment of Channel Partners/Agencies and New Entrepreneur under ‘Grid Connected Rooftop and Small Solar Power Plants Programme’

The Ministry of New and Renewable Energy (MNRE) is implementing a Grid Connected Rooftop and Small Solar Power Plants Programme’ in the Country.  The Government of India has set a target of 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants during the next five years. However, 10,000 MWp are intended to be done in next two years. These rooftop solar PV plants will be set up in residential, commercial, industrial, institutional sectors in the country ranging from 1 kWp to 500 kWp capacity. Such rooftop plants have become economically viable as they produce clean electricity from the solar energy at about Rs. 7.0 per kWh even without any subsidy. However, MNRE will be providing the 15% subsidy on the capital cost of the system. The interest subsidy through the banks is also being planned.

2. The Channel Partners/Agencies will play an important role in implementation of grid connected rooftop systems in residential, commercial, industrial and institutional sectors across the country. The Channel Partners may be involved by States Nodal Agencies/ Departments/ PSUs, Financial Institutions, Public Sector Banks and other implementing agencie Ref. “Grid Connected Rooftop and Small Solar Power Plants Programme” vide no. 30/11/2012-13/NSM dated 26th  June 2014, for empanelment of Channel Partners the guidelines are as follows :

Section-1

1. Any of the following entities can apply to become Channel Partner

1.1     Renewable Energy Service Providing Companies (RESPCOs)

1.2     System Integrators

1.3     Manufactures of any component of the Solar Plants

1.4     Project Developers

1.5     VENDORS/Suppliers of solar equipment’s

1.6     Reputed and relevant NGOs of national level

1.7     Govt. PSUs, Departments, Agencies, Technical Institutions

2. The eligibility conditions are:

2.1       The  Registered  company/NGO  must  have  experience  to  carry  out  activities which are envisaged under the programme.

2.2       The Channel Partner have certificate from a rating agency in the country for technical and financial strength.

2.3     The Channel Partner must have audited account for last three years.

2.4       The  company net worth must be positive.  The  assests and liabilities  of  the company must be clearly specified by rating agencies.

2.5    Reputed Govt. PSUs, Departments, Agencies, Technical Institutions could be exempted from the accreditation by rating agency on submission of their application with MNRE based on the criteria defined for this purpose.

3. Application process: Any entity which fulfills the above criteria may approach rating agencies to get the rating. After getting rating the entities may forward the rating report with application to register them as Channel Partner.

3.1     Rating  Agencies:  Reputed  rating  agencies  in  the  country  which  may  be specified by MNRE including those who registered with RBI and SEBI are eligible to rate the agencies. The following is the levels of rating :

1A 1B 1C 1D 1E
2A 2B 2C 2D 2E
3A 3B 3C 3D 3E
4A 4B 4C 4D 4E
5A 5B 5C 5D 5E

1 to 5 depicts the technical strength with 1 being the highest. A to E depicts the financial strength with A being the highest.

3.2     Period to Receive Applications: The Ministry will receive applications from the entities to become Channel Partners during January – February and July – August in every calendar year. However, depending upon necessity the applications may be invited in between also.

3.3       Tenure: The tenure of Channel Partner is initially for two years.

3.4     The Channel Partner will give undertaking for engagement, development and training of at least 25 persons who will work for the development of solar roof-top market through sales, service, marketing etc.

3.5     The Channel Partner must open office/ shops and service centers in the State where they have their registered office.

4.0      Section-2: Service network

Since all systems installed by Channel Partners are with five years AMC the Channel Partners must have representative office in the area/state where the systems are installed. The Channel Partner must be in position to attend the complaint, if any, within 48 hrs.

5.0       Section-3: Website

The Channel Partner must have own website. Details of all systems installed by Channel Partners must be placed on website. Channel Partners have to have complaint redressal mechanism. This must be reflected in the Channel Partner’s Website.

6.0       Section-4: Training

 

The Channel Partner will have to develop training capacities. MNRE will come with plan to train local persons to ensure service near the user. Channel Partners will have to implement the plan. They must also have a plan of their own. The details of trained manpower must be placed on Channel Partner’s Website.

 

7.0       Section-5: Manpower

 

7.1     Channel Partners must have technical manpower on  their payrolls. This will reflect in the rating reports given by the rating agencies.

 

7.2      Literature  User’s  Manual: The Channel Partner must have literature/user’s manual for installer and user. They must have brochure, pamphlets giving company information, company information, to whom complaint to be placed for service. These must be distributed to all users along with manuals of inverters and other information to the user.

 

8.0       Section-6: Review

 

The Ministry will review the Programme periodically.

 

9.0       Guidelines for Empanelment of New Entrepreneurs

 

1. It should be a registered company under the Company Act 1956.

2. It should not be blacklisted from ministry of cooperate affair.

3. It must have Solar/power related experience.

4. The company must have Engineering background.

5. Company engaged in the manufacturing of any of solar related product or BOS component can be considered for the empanelment.

Guidelines-for-Empanelment-of-Channel-Partner-for-GCRT

Posted in Channel Partner, Grid Interactive Distributed Solar Energy Systems, India, Industrial, MNRE, PV, Regulations and Procedures, Residential, Rooftop, Solar, Subsidy

Seven Reasons Cheap Oil Can’t Stop Renewables Now

 

Oil prices have fallen by more than half since July. Just five years ago, such a plunge in fossil fuels would have put the renewable-energy industry on bankruptcy watch. Today: Meh.

Here are seven reasons why humanity’s transition to cleaner energy won’t be sidetracked by cheap oil.

1. The Sun Doesn’t Compete With Oil

Oil is for cars; renewables are for electricity. The two don’t really compete. Oil is just too expensive to power the grid, even with prices well below $50 a barrel.

Instead, solar competes with coal, natural gas, hydro, and nuclear power. Solar, the newest to the mix, makes up less than 1 percent of the electricity market today but will be the world’s biggest single source by 2050, according to the International Energy Agency. Demand is so strong that the biggest limit to installations this year may be the availability of panels.

“You couldn’t kill solar now if you wanted to,” says Jenny Chase, the lead solar analyst with Bloomberg New Energy Finance in London.

2. Electricity Prices Are Still Going Up

The real threat to renewables isn’t cheap oil; it’s cheap electricity. In the U.S., abundant natural gas has made power production exceedingly inexpensive. So why are electricity bills still going up?

US Electric Prices
Source: Deutsche Bank. Data: EIA, Thomson Reuters

Fuel isn’t the only component of the electricity bill. Consumers also pay to get the electricity from power plant to home. In recent years, those costs have soared. Annual investments in the grid increased fourfold since 1980, to $27 billion in 2010, according to a report by Deutsche Bank analyst Vishal Shah. That’s driving bills higher and making rooftop solar attractive.

3. Solar Prices Are Still Going Down

You may have seen this chart before. It’s the most important chart. It shows the reason solar will soon dominate: It’s a technology, not a fuel. As time passes, the efficiency of solar power increases and prices fall. Michael Park, an analyst at Sanford C. Bernstein, has a term for the staggering price relationship between solar and fossil fuels: the Terrordome.
solar

Solar price drop

Source: Bernstein Research. Data: EIA, CIA, World Bank, Bernstein analysis

The chart above shows the price of energy from different sources since the late 1940s. The extreme outlier is solar, which only recently entered the marketplace, at a very high price. Prices are falling so fast that solar will soon undercut even the cheapest fossil fuels, coal and natural gas. In the few places oil and solar compete directly, oil doesn’t stand a chance.

Case in point: Oil-rich Dubai just tripled its solar target for the year 2030, to 15 percent of the country’s total power capacity. Dubai’s government-owned utility this week awarded a $330 million contract for a solar plant that will sell some of the cheapest electricity in the world.

4. Sales of Plug-Ins Are Doing Just Fine, Actually

Conventional wisdom says cheap oil is an existential threat to electric vehicles. It’s been true in the past, notably when Congress retreated from funding EV research in the 1980s as oil prices tanked. Things are different now, and global sales of plug-ins rose by about a third last year, according to BNEF.

US Car Sales

Plug-In Car Shares

Source: Tom Randall. Data: Electric Drive Transportation Association, Ward’s Automotive Group, Bloomberg

Here’s why cheap oil won’t stop electric vehicles:
1.Since 2010 there’s been no relationship between gasoline price and electric vehicle sales, according to BNEF analyst Alejandro Zamorano Cadavid. Electric cars are still in the early-adopter phase, and someone paying $100,000 for a Tesla doesn’t care that gasoline costs a buck less per gallon.
2.In Europe, gas taxes are so high that it makes the price of crude less important. If you’re in Norway, and gas drops from $10 a gallon to $9 a gallon, electric cars are still a deal.
3.In China, the government is stepping up support for electric vehicles. Pollution has become a serious problem, and the Chinese are getting serious about fixing it. Plug-in sales are soaring.

Electric vehicles are moving like a Tesla: quietly, but with great acceleration. Let’s bookmark this conversation for two years from now, when Chevy and Tesla plan to release the first affordable mass-market plug-ins with a range of 200+ miles per charge. At that point, the price of fuel might be a real consideration for car buyers, and at that point it’s more likely to tip the scales toward EVs, not away from them.

5. Pump Prices Haven’t Dropped as Much as Oil Prices

They haven’t changed at all in Malaysia, Indonesia, and Thailand

Pump Prices World
Source: Bernstein Research

There are a couple of interesting reasons why savings at the pump haven’t kept pace with falling oil prices. First, a number of countries, including India and Indonesia, have used the price drop as cover to cut gasoline subsidies that were weighing down their budgets. Second, countries that include China have pocketed the savings from cheaper oil by increasing gasoline taxes to make up the difference.

Fossil-fuel subsidies outpace renewable-energy subsidies by a factor of 6 to 1. Reducing the subsidy gap is one of the cheapest ways to increase fuel efficiency and speed up the switch to cleaner energy. Expect similar moves as the rising toll of climate change pushes governments to take action.

6. Oil Prices Won’t Stay This Low Forever

The history of oil prices follows a golden rule: What goes down must come up. Goldman Sachs identified almost $1 trillion in investments in future oil projects that are no longer profitable with oil under $70 a barrel. American drillers are idling rigs faster than they have since 1991. Eventually, supply will shrink and prices will rise again.

Oil may never return to $100 a barrel, according to billionaire Saudi Prince Alwaleed Bin Talal Al Saud. Even so, few experts foresee oil remaining at its current lows for more than a year or two. Unlike oil, the price of renewables is predictable and always going down. Solar power will be as cheap as, or cheaper than, electricity from the grid in as much as 80 percent of global markets by the end of 2017, according to Deutsche Bank’s Shah.

7. Global Investment in Clean Energy Keeps Flowing

The biggest question for renewables and the oil plunge is: How much does perception shape reality? Shares of solar and wind companies have been pulled down with oil prices. Will this artificial drag bleed into direct investments in energy projects?

global solar installations projection

This chart shows a conservative scenario. BNEF’s more optimistic scenario is 8%-10% higher.

Source: Bloomberg New Energy Finance

Not likely. There are too many forces pulling in the opposite direction. Global investment in clean energy increased 16 percent last year, to $310 billion, according to data compiled by BNEF. The U.S. and China, the world’s biggest emitters, reached a historic deal in November to rein in greenhouse gases. Pope Francis is preparing a papal encyclical on climate change, a letter to the world’s bishops that will formalize the church’s moral position on the issue for 1.2 billion Catholics. He may also convene a summit of the world’s top religious leaders in advance of global climate talks in Paris in December.

Those talks represent the world’s last best chance to mitigate the damage from climate change. National policies to reduce carbon pollution would speed up the adoption of clean energy. Even in their absence, the global energy shift away from fossil fuels has begun, and we know how it will end.

Source: Bloomberg

Posted in Climate Change, Coal, Fossil Fuel, Greenhouse Gases, Grid Connected, Grid Interactive Distributed Solar Energy Systems, India, News, Pollution, PV, Renewables, Solar, USA, Wind | Tagged , , , , , , , , , , , , , , , ,