Jawaharlal NehruNational Solar Mission

Ministry of New and Renewable Energy8 July, 2011

Present Status & Guidelines for Selection on New Solar Power projects

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JNNSM Road Map

Application segment Target for Phase I

(2010-13)

Cumulative Target for

Phase 2 (2013-17)

Cumulative Target for

Phase 3 (2017-22)

Grid solar power incl. roof top

1,000 MW100 MW

4,000 MW 20,000 MW

Off-grid solar applications (incl. rural solar lights)

200 MW

2 million

1,000 MW

10 million

2,000 MW

20 million

Solar collectors 7 million sq

meters

15 million sq

meters

20 million sq meters

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Present StatusApplication segment Target for

Phase I (2010-13)

StatusMarch, 2011

TargetMarch, 2012

Grid solar power incl. roof top & distributed small grid connected plants

1,000 MW

100 MW

704 MW allotted

98 MW allotted

Remaining capacity by December, 2011

Off-grid solar applications

200 MW

40.6 MW sanctioned

Total 100 MW sanctioned by March, 2012

Solar collectors 7 million sq meters

4.5 million sq meters

5.7 million sq meters total by March, 2012

Policy and Regulatory Framework

Tariff for purchase of Solar Power by Regulators

Bundling solar with unallocated thermal power through Central Agency – NTPC Vidyut Vyapar Nigam (NVVN)

Competitive Bidding to select utility scale power projects

Solar specific RPO announced by most of the States

Scheme on RE Certificate announced

Payment Security Mechanism

Customs & Excise Duty concessions on grid solar power projects

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Grid Solar Power

Present Status/Likely Commissioning

75 projects reported arrangement of funds (120 projects) by mid June, 2011

Most of the other projects expect financial closure by end June/early July 2011

Plant commissioning started in June, 2011.

- 3 plants of MW capacity each commissioned in June,2011

250 MW PV projects expected to be commissioned during September – December, 2011

Technology Choice in Grid PV Power Projects: Phase-I

Technology Choice Grid Solar Thermal Power: Phase-I

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Guidelines for Selection of Grid Solar PV Power Projects

25th July, 2010

9

Grid Solar Power (1)

1,000 MW Capacity allocation between SPV and Solar Thermal to be 50:50

84 MW capacity projects (54 PV & 30 Thermal) allocated under Migration to be taken into account

Selection of PV projects to be done in two batches.

- First Batch in 2010 and limited to 150 MWp.

- Second batch next year of approx 300 MWp

Solar Thermal : selection for 470 MW done in 2010.

-

Maximum and Minimum capacity &Commissioning period

For SPV- 5 MWp as both maximum and minimum capacity to be commissioned in 12 months from PPA

For Solar Thermal- 5 MW as minimum and 100 MW as maximum capacity to be commissioned in 28 months from PPA

Applications per company

In order to have wider participation only one application per Company including its Parent, Affiliate or Ultimate Parent-or any Group Company shall be permitted for development of one project.

In solar thermal, the company could however propose to set up the capacity at 2 or more sites but within the same permitted application and maximum size

Criteria for short listing

Issuance of Request for Selection (RFS) by NVVN for a period of 30 days.

First – Net worth requirement of Rs 3 cr/ MW for project capacity up to 20MW & Rs. 2 cr/MW for every additional MW beyond this.

Second – Technical requirements. International standards in PV. In Solar Thermal,

defined as minimum levels of experience for technology provider/ EPC contractor

Criteria …. Third - Connectivity to the Grid.

Interconnection with the State Transmission Utility (STU) substation at the voltage level of 33 kV or above.

Project Developer to submit a letter, along with the RFS, from the STU confirming technical feasibility for connectivity at the indicated location.

Criteria…. Fourth - Domestic Content

Promotion of Domestic manufacturing is important objective of the NSM.

For SPV Projects selected in first batch during FY 2010-

11, mandatory for Projects based on crystalline silicon technology to use the modules manufactured in India

Projects selected in second batch, mandatory to use cells and modules manufactured in India

For Solar thermal projects – 30% of project cost to be met with domestic components, excluding the land cost.

Short listing and Selection

If 150 MWp in SPV and 470 MW in Solar thermal or less, get short listed, then Letter of Intent to all developers to invite them for signing PPA with NVVN.

In the event, the total aggregate capacity is more final selection of the Projects shall be done on the basis of discount to be offered by Project Developers on CERC Approved Applicable Tariff .

Short listing…..

The Projects offering the maximum discount in Rs/kWh on the CERC Approved Applicable Tariff would be selected first and so on.

In order to discourage adventurous bids, Bid Bond on graded scale would need to be furnished along with the RfP bid. With increase in discount, bid bond will go on increasing.

Ensuring Performance

Bank guarantee at time of RFS. Increasing bid bond amount as discount

increases. Forfeiture of Bank guarantees and bid bond if

PPA not done by developer Forfeiture of Bank guarantees, if Financial

closure not done within 180 days Forfeiture of guarantees if delay in

commissioning Monitoring equipment, compliance standards

Suggestions Invited by 30 June 2011

What should be maximum capacity of a PV Power Plant at any location

What should be maximum capacity to be set up by a company or a Group

Is there any need to modify or issue clarifications about any specific clause/condition of the guidelines

Suggestions

More than 50 suggestions have been received from various stakeholders including FICCI, CII, ADB, Government of USA, project developers, manufacturers, EPC companies and consultants etc.

Summary of Suggestions

Plant Capacity Majority of suggestions are for Higher

capacity to be allowed (10 – 100 MWp) to encourage economies of scale, bankability, best in class EPC and technology and vendor development

Maximum Capacity per Company/Group 10 - 150 MWp per Company/Group may be

allowed

Summary of Other Suggestions

Pre-qualification criterion- Introduce technical criterion relating to

previous experience of the company in RE/Power projects or firm EPC tie-up at the time of application

- EPC contractor should have done plants of MW size any where in the world

- Enhance net worth requirement- Provide evidence for equity arrangement

Summary of Other Suggestions

Grid Connectivity- Clarify the responsibility of SPD and STU

on meeting the cost- NVVN may meet the cost of grid

extension beyond the plant- State may be asked to meet the cost of

grid extension Land- Facilitate early/timely availability of land

Summary of Other Suggestions

Financial Closure- Extend time from 180 days to 240 days- Clarify about internal funding

arrangements as equivalent of FC- Do not insist on draw down- Do not insist on FC

Summary of Other Suggestions

Bid Bond & Penalties- Reduce bid bond amount- Penalties harsh, give additional time for

project completion- Do not cancel project if FC not achieved

in 180 days- Do not give lower tariff if project is

delayed beyond 3 months

Summary of Other Suggestions

Domestic Content- Continue with Domestic content; cells &

modules should be made in India- Consider enhancing % of domestic content like

Italy - Clarify about sourcing of thin film modules as

they do not use cells- Allow innovation and latest technologies to

come; review domestic content- Do not insist on Domestic content

Summary of Other Suggestions

Others

- Allow time from 15 months ( 5-15 MW) to 21 -24 months (>15 MW) for project completion

- Allow 60 days for submission of RfS- PV capacity should be inspected at DC side;

difficult to demonstrate at AC side- Do not insist on RFID

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