NTPC Targets for Installation of 15000 MW Grid-Connected Solar PV power plants

“The Government of India (through Cabinet approval on 25.02.2015) has approved the Implementation of Scheme for setting up of 15,000 MW of Grid- connected Solar PV Power projects under National Solar Mission through NTPC/ NVVN in three tranches as follows:

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

Currently Tranche-I, is under implementation. In Tranche-I, which is 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 mechanism of operation of 3,000 MW capacity Solar PV plants under Tranche-I of Batch-II of Phase-II of NSM, is as follows:

a) The eligible plant capacity will be minimum 10 MW and maximum may be fixed for each State’s lot of projects.

b) The bidding will be State specific and conducted through e-bidding.

c) 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.

d) 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).

e) 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.

f) NTPC Ltd. / 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. NTPC Ltd. / NVVN will bundle the Solar Power with unallocated Thermal Power from Coal based stations of NTPC Ltd. 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 tariff will be separately calculated for each State for the solar Power.

g) Excess power whether generated 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 Ltd. / NVVN”.