India’s Ministry of New and Renewable Energy (MNRE) has unveiled draft guidelines for Phase 2 of Batch 1 of the Jawaharlal Nehru National Solar Mission (JNNSM). 

Most notably, this changes from a reverse auction to a fixed, 25-year tariff. Here are the details:

The proposal for Viability Gap Funding (VGF) Scheme for large size solar power projects under Batch-1 of Phase-II of Jawaharlal Nehru National Solar Mission (JNNSM) envisages the following main provisions:

  • Coverage: Solar PV projects of total 750 MW capacity to be set up on Build-Own-Operate basis, with minimum project capacity of 10 MW.
  • Tariff for power purchase: @ Rs.5.45/ unit fixed for 25 years.
  • VGF support: up to 30% of project cost or Rs.2.5 crore/ MW whichever is less, based on bids.
  • Developers’ equity contribution: At least Rs.1.5 crore/MW. The balance amount can be raised as loan from any source.

This scheme is, however, still under finalisation.

The Ministry envisages solar power JNNSM Phase-II (April, 2013– March, 2017), comprising of 3,000 MW under Central schemes and 6,000 MW under States own initiatives / market mechanisms of Solar Renewable Purchase Obligations (RPOs)/ Renewable Energy Certificates (RECs). Central schemes is envisaged mainly through three different schemes of (i) Bundling with thermal power (ii) Viability Gap Funding support from National Clean Energy Fund and (iii) Generation Based Incentive Scheme from Ministry’s direct budgetary allocation, in different proportions depending on availability of unallocated quota of thermal power allocation of funds from different sources.