Indian Ministry makes new grid connected solar projects guidline report public

The much awaited guidelines from the Indian New and Renewable Energy Ministry for new grid connected solar projects under Phase 1 of the JNNSM have been made public. Please find a summary, but please request a formal guideline report from the Indian authorities.

Please find a summary of the guidelines:

Size: Minimum 5 MW  Maximum 100 MW

NVVN
NVVN will invite project developers to participate Request for Selection (RFS) will be floated

Developers will submit applications for RFS in 30 days

Processing Fee
Developers may be requested to pay Rs. 1 Lakh/MW along with RFS

No. of applicants by a Co.
Total capacity to be applied by a company (including parent, affiliate or ultimate company) will be 100 MW.
Company can apply at different locations or categories subject to maximum capacity of 100 MW
Company to submit single application detailing all projects.

Net worth Rs. 3 crore / MW

Technical Criteria

SPD (Solar Power Developer) should full fill either of the following:
1. SPD should be a technology provider himself and should have either designed 1 MW which is in operation for 1 yr. OR obtained one financial closure of at least 50% of the proposed capacity and proposed technology.
2. SPD has tie up with technology provider fulfilling requirements at sr. no. 1.
3. SPD is an EPC contractor with EPC experience of 100 MW conventional thermal power plant AND tie up with technology provider fulfilling requirements at sr. no. 1
4. SPD has tie up with an EPC contractor with EPC exp. of 100 MW conventional thermal power plant AND tie up with technology provider fulfilling requirements at sr. no. 1
5. SPD is an EPC contractor having experience in doing EPC of 1 MW Solar Thermal Plant AND tie up with technology provider fulfilling requirements at sr. no. 1
6. SPD has tie up with an EPC contractor having exp. in doing EPC of 1 MW Solar Thermal Plant AND tie up with technology provider fulfilling requirements at sr. no. 1

Tie up would mean either of the following:

1. MoU for technology transfer
2. Technology or Document Sale Agreement
3. EPC Contract
4. Project specific assurance to support with design and construction of the plant.

Connectivity with grid
To be connected with 33 KV (and above) grid and provide confirmation letter from STU/DISCOM.
Connection is allowed on 33 KV side of 33/11 KV distribution transformers.

Short – Listing of Thermal Project

If the total capacity short listed is less than 500 MW then all short listed projects will get LOI
If the total capacity short listed is more than 500 MW then final selection will be from short listed projects and shall be done on the basis of discount to be offered by SPD to CERC approved applicable tariff

Selection of projects in first Batch (FY 2010-11)

Projects offering maximum discount of Rs./kwh on CERC tariff would be selected first and so on.
In order to discourage adventurous bids, Performances guarantee on an increasing scale would need to be furnished viz. the amount thereof would increase as the discount increases. Thus for every paisa of discount, the applicant would require to furnish Rs. 50,000 / - per MW as performance guarantee
In the eventuality of tie, applicant would be selected by draw of lots Discount has to be offered separately if a company has bid for multiple projects

Selection of projects in second Batch (FY 2011-12)
Projects short-listed by NVVN and not selected in first batch will be allowed to participate in second batch
Same RFS process shall be followed in second batch

PPA and Power Sale Agreement
To be signed between SPD and NVVN within one month from the date of LOI

Performance Guarantee
Rs. 50 Lacs/MW to be submitted as Rs. 20 Lacs/MW along with RFS and Rs. 30 Lacs/MW at the time of signing of PPA BG to be valid for 34 months Minimum equity to be held by promoter Controlling share holding in company should not change from date of PPA up to a period of 1 year after commencement of supply of power.

Financial Closure

FC to be achieved in 180 days SPD should also provide evidence that required land is in clear possession of SPD and requisite.

Technical criteria has been fulfilled at this stage

In case of balance sheet financing, 25% of the required debt should be drawn within 90 days of signing PPA as certified by lender/lead lender

In case of delay, NVVN shall encash Rs. 20 Lac/MW BG and de-list the project Commissioning (28 months from the date of PPA)

In case of delay

a. Delay up to 1 month: 20% of BG will be encashed
b. Delay >1 month and <2 month: 40 % of BG will be encashed
c. Delay >2 month and <3 month: Remaining BG will be encashed
d. In case of delay beyond 3 months SPD will have to pay LD @ Rs. 1,00,000/MW/Day of delay.
e. Maximum time period allowed is 36 months from the date of PPA. Thereafter PPA will be terminated and project will be de-listed.

Role of Carbon Financing
SPD will be encouraged to identify the potential role of carbon finance in their investment analysis including

a. Expected revenues from emission reductions
b. Cost of power with and without carbon revenue
A nodal agency will be designated as the program coordinating entity for the purpose of facilitating the emission reductions benefits using the programmatic approach. It will perform this function in cooperation with Project developers and other parties.