INDIA: Solar Energy Corp. of India is a public sector company registered under Section 25 of Companies Act, 1956, as a Company not for profit, under the administrative control of the Ministry of New & Renewable Energy (MNRE).
The main object of the company is to assist the Ministry and function as the implementing and facilitating arm of the Jawaharlal Nehru National Solar Mission (JNNSM) for development, promotion and commercialization of solar energy technologies in the country.
As part of JNNSM Phase-II Batch-I, SECI will be inviting proposals through issue of an “Request for selection” (RfS) for setting up of grid connected Solar PV Projects with total aggregate capacity of 750 MW for purchase of power for a period of 25 years. SECI shall enter into Power purchase agreement (PPA) with successful bidders selected based on the RfS.
The scheme of ‘Viability Gap Funding” shall be as follows.
1) The tariff to be paid to the developer by SECI is fixed at Rs.5.45 per kWh. This tariff will remain firm for 25 years project period. In case benefit of accelerated depreciation is availed for a project, the tariff will get reduced by 10 percent to Rs.4.95 per kWh.
2) The developer will be provided a VGF on his bid. The upper limit for VGF is 30 percent of the project cost or Rs.2.5 Cr./MW, whichever is lower. The developer will be required to indicate his preliminary estimate of project cost as per format in Annexure-A.
3) The developer has to put his own equity of at least Rs.1.5 Cr./MW.
4) The remaining amount can be raised as loan from any source by the developer.
5) SECI will issue a letter confirming release of VGF so that the bidder is able to achieve financial closure for full amount, if required, at the time of signing of PPA.
6) The VGF will be released in three branches as follows:
i) 25 percent at the time of delivery of at least 50 percent of the major equipment at the site and after inspection by a Committee to be constituted by MNRE. The major equipment will comprise of (a) Modules-40 percent, (b) Mounting Structures-15 percent, (c) Power Conditioning Units-25 percent and (d) Switchgear and Transformers-20 percent. In case the inspection is taking time, SECI may release the VGF due on self- certification by the developer against BG of equivalent amount.
ii) 50 percent on successful commissioning of the full capacity of the plant. The project’s commissioning will be declared by a Committee to be constituted by MNRE. The project would be considered as Commissioned if energy has flown into the grid after the entire plant equipment is installed and connected.
iii) Balance 25 percent after one year of operation meeting requirements of generation.