Indian Ministry Releases Draft Guidelines for 3000 MW of Solar PV Capacity

The Ministry of New and Renewable Energy of India has released draft guidelines for 3000 MW of solar PV projects to be developed under the National Solar Mission’s Phase 2 Batch 2 Tranche 1.

  1. MNRE has revised the solar capacity target under the phase 2 of National Solar Mission from 9000 MW to 15000 MW of grid connected PV capacity.
  2. Phase 2 will be further segmented into 3 tranches. First tranche (starting from 2014-2015) targets 3000 MW, second tranche (starting from 2015-2016) targets 5000 MW and the third tranche (starting from 2016-2017) targets 7000 MW.
  3. Under the tranche 1, competitive reverse bidding will be held, and solar-generated power will be bundled with 1500 MW of unallocated coal-generated power.
  4. Solar Park mechanism will be used by NVVN to implement this tranche. Part 1 of this tranche will be a 1000MW Solar Park in Kurnool District, Andhra Pradesh.
  5. Out of 1000 MW, 250 MW is reserved under domestic content requirement (DCR). In case of crystalline Silicon technology, cells must have been manufactured in India, not just modules. Thin film technology has also been brought under the ambit of DCR – thin film modules must be assembled in India.
  6. Solar Park will be developed by Joint Venture of SECI (, NEDCAP ( and APGENCO (
  7. Selected solar project developers will enter into an implementation support agreement with the JV firm and transmission agreement with STU (APTRANSCO or Power Grid Corporation of India).
  8. Each project will have a capacity of 50 MW, evacuated at 132 kV or above rated substations. Maximum capacity allocated to a company (including sub or super organisations) will be 250 MW.
  9. Minimum required net worth of a bidder for meeting the financial criteria will be INR 2 crore/MW.
  10. During ranking of bid tariff rates, tariff rates with and without accelerated depreciation (AD) benefit claim shall be treated at par.
  11. Power Purchase Agreement (PPA) signing authority will be NVVN. PPA will be signed for 25 year time period with possibility of extension for additional 15 years, @ INR 3/kWh (to be determined after 20 years of operation).
  12. Earnest money deposit(EMD) of INR 20 lakh/MW has to be provided as bank guarantee at the outset. Performance guarantee of total INR 50 lakhs/MW (EMD + additional INR 20 lakhs/MW) has to be provided during PPA signing.
  13. No change in the shareholding in the Company developing the Project shall be permitted from the date of submitting the RfS till the execution of the PPA (except when the company is a listed one). Control (more than 50% of the paid up capital) can be transferred after 1 year post commissioning of the project. If the control  of the project changes hands, INR 5 lakhs/MW has to be paid to NVVN by the developer.
  14. There is a provision for part commissioning of the project – minimum 50% of the total project capacity for first commissioning, multiples of 5MW thereafter.
  15. Project has to be commissioned  within 13 months of PPA signing. Financial closure has to be achieved within 210 days of PPA signing.
  16. Penalty for delay beyond total 18 months of PPA signing will be INR 1 lakh/MW.
  17. NVVN will purchase non-solar RECs and club them along with the bundled solar-coal generated power (1 non-solar REC for every 40,000 units of bundled power), so as to promote the REC market. (NVVN may charge additional INR 0.05/kWh from the discom to compensate for the additional cost).
  18. Payment Security Fund with a corpus to cover for 3 months of payments will be maintained. Source of this fund will be mainly National Clean Energy Fund.


Review meeting with developers and stakeholders will be held on 17 October 2014, at 10:30 a.m. in Mirza Ghalib Hall, Scope Convention Centre, Scope Complex, Lodhi Road, New Delhi. General public can send comments by 30 October 2014.

Click on the link below to download draft guidelines:

MNRE NSM Draft-Guidelines-for-Batch-II-Phase-II-Tranche-I











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Top-10 states for grid-connected solar in India

Breakdown of India's 2766 MW capacity according to states

India’s top 10 states according to grid-connected capacity

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Record Funding of $30 Million in ACME Solar via IFC to execute 100MW Solar Project in India

ACME solar geared up to setup 100MW solar project under National Solar Mission umbrella after it bragged a funding of Rs 202 Crore  from International Finance Corporation (IFC).  The project were earlier allotted to the company in the auction of JNNSM Phase II batch I.

The project will be executed in 5 segments of 20MW capacity each, five subsidiaries of ACME solar came out as victorious bidder. Jodhpur, Rajasthan is where these project will come up and is expected to be completed by April  2015.

Acme has been a pioneer in solar power projects in India and also had earlier provided with loans for the development of 30MW of solar Project in Madhya Pradesh. This  Rs 202 crores  is a part of Rs 300 corer loan signed earlier with IFC.  It had completed 15MW solar PV project in Gujarat which was backed by SBI and Ex-Im bank earlier.

Company will procure the modules from TATA Solar with approximate volume of 1 lakh units for one of the five projects. Other four projects could be managed either domestically or even go for imported modules.

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Rajasthan Solar Energy Policy 2014

Rajasthan receives maximum solar irradiation amongst other states in India

Aim and Objectives:  To create an enabling environment for Installation  of 25000 MW of solar power through State or Private enterprises or through Public Private Partnerships or through individual efforts.

Generation of employment in all activities

Making Solar centre of excellence for research and accelerate step towards grid Parity

Effective from 8 Oct 2014 and will remain in force until suspended or modified.

Important Parameters

  1. RREC will act as Nodal Agency from registrations, approvals, allocations and execution of Projects. Projects above 20MW will be nominated as state level facilitator.
  2. Grid Interactive Projects under NSM, Utility scale and state will promote them through competitive bidding to target RPO and under REC mechanism. Utility projects for Captive use and for sale to 3rd Part along with Open access to promote investment.
  3.  Encourage development of Rooftop PV plants(No Registration Required) by devising net metering mechanism and off grid application by promoting hybrid systems, irrigation usage and power sale through its own distribution system.
  4. Solar Parks will be developed by RREC and also by Private Developers by paying Rs 5000/Hectare + service tax to maximum of 10 Lacs. Land acquisition is made remarkably favourable and could be purchased easier. All the projects will be registered and governed under Rajasthan Solar Energy Policy, 2014. State will also promote JVCs with state investment upto 50% equity for projects above 500MW.
  5. Processing Fees
Plant Capacity Processing Fee (Rs)
Less than 10MW 50,000 per MW
Between 10MW to 50MW 5,00,000 per MW
Between 50MW to 100MW 10,00,000 per Project
More than 100MW 30,00,000 per Project

 6.     Maximum Land which could be allocated:

Sno. Technology Maximum Allocation
 Crystalline 2.5 Hect. / MW
Crystalline with Tracker 3.5 Hect / MW
Thin Film/ Amorphous with / without Tracker 3.5 Hect. / MW
  •  Upto PLF of 21%: 3.5 Hect./MW
  •  For every 1% inc. In PLF, 0.15 Hect./MW additional allotment

Private land could be employed without conversion requirements.

7.      Incentives and Facilities will be granted for eligible industry by Industries Department, Water Resource department will allocate required quantity of water for solar thermal power plants

8.    Projects Approval

Capacity Concerned Committee
More Than 10MW State Level Empowered Committee (SLEC)
Under 10MW Sate Level Screening Committe (SLSC)
Mega Projects of more than 500MW Placed by RREC directly before SLEC

9.     Completion Time

Project Type Completion Time(from date of approval)
Upto 20MW 15 months
Between 20MW to 50MW 18 months
More than 50MW 24 months
Upto 25MW 24 months
Between 25MW to 100MW 36 months
100MW to 200MW 42 months
More than 200MW 48 months

For more information please follow the link below

Rajasthan Policy Document

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Indian government to attract investors at renewable energy conclave in early 2015

Indian government has gotten into action following Prime Minister Narendra Modi’s announcement to promote investments in renewable sector in India. There are plans to host an investor’s summit, and concerned ministry – Ministry of New and Renewable Energy (now aligned with Ministry of Power) along with industry associations (CII, FICCI, NSEFI) are planning rigorously to make the summit successful. It is expected that many investors will sign MoUs during the meet, which would be inaugurated by the PM himself, who intends to add solar capacity many times more than the originally targeted 20GW by 2022 under National Solar Mission.

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