India Solar – RfS for 750 MW projects under JNNSM released. Last date of submission 28/12/2013

Solar Energy Corporation of India(SECI) has released the Request for Selection(RfS) document for 750 MW grid connected solar PV projects under JNNSM Phase II Batch 1. The draft guidelines and the final guidelines were released in April 2013 and most recently earlier this month(Click here and here for the detailed guidelines and the updates). With the approval of Rs.1875 Crore towards VGF(click here for more) under the Phase 2 of the mission by the Government of India(GoI), the mission is back on track.
Some highlights are as follows.
a. Last date and time of submission – 28/12/2013 at 10:30 Hrs.
b. Bid Opening(Techno-Commercial) – 28/12/2013 at 12:30 Hrs
c. The bidding process has two parts – Part A(Domestic Content Requirement) and Part B(Open). Bidders can bid for Part A and/or Part B.
d. Power Purchase Agreement(PPA) and Viability Gap Funding(VGF) Securitization Agreement will be uploaded soon in MNRE website soon.
e. PPA duration – 25 Years @ Rs. 5.45 per kWh. In case Accelerated Depreciation(AD) is claimed, the tariff will be Rs. 4.75 /kWh.
f. Upper limit for VGF – 30% of the project cost or Rs.2.5 Crore/MW/project, whichever is the lower.
g. Minimum equity by the developer – Rs. 1.5 Crore/MW
h. Release of VGF will be in 6 tranches(Note: COD – Date of Commissioning of full capacity of the project)

  • Upon Commissioning (COD) – 50%;
  • 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%;

i. Lock in period before the project can be transferred or sold to a third party – 1 Year
j. Capacity of each project – Minimum size -10 MW and Maximum size – 50 MW. Project size should be in multiples of 10(10 MW, 20 MW, 30 MW, 40 MW and 50 MW).
k. Maximum total Capacity to be allocated to one company – 100 MW. Total projects that can be allocated to one company – 5.
l. Net worth Criteria – Rs. 2 Crore/MW upto 20 MW. For every MW beyond 20 MW, additional net worth of Rs. 1 Crore/MW.
m. Grid connectivity – At 33 KV and above.
n. Generation requirements – Declared annual Capacity Utilisation Factor(CUF) – Minimum 17%. The developer should maintain the annual CUF within 10% and -15% of the declared CUF till the end of the first 10 years. Between the 11th year and 25th year, the minimum CUF has to be 15% and the actual generation should be within +10% and – 20% of the declared CUF.
o. Shortfall in generation – The developer is liable to pay compensation for the shortfall in generation.
p. Excess Generation : Any excess generation over and above 10% of declared annual CUF will be purchased by SECI at a fixed tariff of Rs. 3/ kWh
q. Financial Closure : Shall be within 210 days of signing the PPA.
r. Deadline for commissioning – 13 months from the date of signing the PPA.
The RfS document can be downloaded at the MNRE website here.
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