The Solar Energy Corporation of Indian (SECI) had earlier released the standard PPA and VGF securitization agreement following which a pre-bid meeting was scheduled to clarify the details under the RfS as well as the PPA and VGF agreements. SECI has now released the clarifications to the queries raised in the pre-bid meeting. A highlight of some of the clarifications provided by SECI is provided below:
- SPDs are allowed to change the location of the project till the time of financial closure but the new location would have to be within the same state.
- Letter from CTU/STU/transmission utility is mandatory and the bid will not be eligible without the same.
- The ultimate buyer of the power from a particular project cannot be ascertained presently. Also, SECI does not plan to release a list of potential power purchasers (DISCOMS/bulk consumers).
- All the stipulated timelines would be effective from the date of issue of LoI.
- There will be no change in the proposed timelines for the projects (e.g. commissioning period would remain the same and not extended, no change in timelines based on capacity of the project etc.).
- CUF would be calculated based on the contracted capacity i.e. the MWac rating of the power plant rather than DC rating (this has been clarified in the amended PPA).
- Clause pertaining to quarterly maintenance of CUF deleted. This might suggest that an annual CUF metric is to be used.
- The projects coming up under this phase will be ineligible for RECs should the power be procured by SECI (including the excess power procurement at reduced rates). The only way for the project to be eligible for REC is for SECI to refuse to purchase the excess power which then can be used to claim solar RECs.
- There will be no change in the VGF disbursment process.
- SPDs would be allowed to opt out of the selection process should they be alloted a capacity less than what they had bid for.
All costs related to third party verifications (wherever required) shall be borne by the SECI.
- Clause 8.2.2 and 4.8.3 of the standard PPA has been amended.
- Clause 3.7 B (xiii) and 3.0 (ii) (of format 6.10) of the RfS document has been amended.
- Further clarifications regarding securitization of VGF would be released soon.