(a) whether the Government provides concessions to private players for the setting up of
solar photovoltaic power plants in the country;
(b) if so, the details thereof;
(c) whether concessions are given for buying power from these projects; as well;
(d) if so, the details thereof alongwith the details of guidelines for signing the Power Purchase Agreement (PPAs); by these projects;
(e) whether any PPAs have so far been signed; and
(f) if so, the details thereof ?
THE MINISTER OF NEW AND RENEWABLE ENERGY (DR. FAROOQ ABDULLAH)
(a),(b),(c),(d),(e)&(f): Government has been implementing a demonstration programme
to encourage setting up of grid connected solar photovoltaic (PV) power plants in the country
on build, own and operate basis. Under the demonstration programme 8 project developers have
signed PPAs with the concerned state utilities to set up 24 MWp capacity solar photovoltaic
power plants, which are eligible to receive generation based incentive (GBI) for the power fed
to the grid. Ministry will provide the GBI for a period of ten years, if the utility
continues to purchase power from the project developer. The GBI is calculated as a difference
of a notional amount of Rs. 15 per kWh minus the tariff announced by the appropriate
Electricity Regulatory Commission for such PV power project. The project developers have
signed the Power Purchase Agreement (PPA) for these projects as per the terms and conditions
of the PPA of the concerned State utility.
Government has recently launched the Jawaharlal Nehru National Solar Mission to develop solar
energy technologies to make solar power competitive to conventional grid power by
2022. The Mission will be implemented in three phases. Government has approved the target
to set up 1,100 MW grid connected solar plants, including 100 MW capacity plants as rooftop
and small solar plants for the first phase of the Mission till March, 2013. NTPC Vidyut Vyapar
Nigam (NVVN), the trading subsidiary of NTPC, is the nodal agency for purchase of 1,000 MW
capacity of grid solar power (connected to 33 KV and above grid) from the project developers
at a tariff fixed by Central Electricity Regulatory Commission (CERC) for purchase of solar
power. NVVN will sign a PPA with each project developer for a period of 25 years as fixed by
CERC. NVVN has brought out draft guidelines for the scheme and the PPA, which have been
discussed with the project developers and other stakeholders, but not finalized as yet. 100
MW capacity roof top and small grid connected solar power plants, which are connected to LT/11
KV grid, will also be supported in the first phase of the Mission. The appropriate State
Electricity Regulatory Commission will fix tariff for purchase of solar power from such solar
power plants and the Ministry will provide a generation based Incentive for power fed to the
grid. The quantum of the GBI will be the difference of the tariff announced by the Central
Electricity Regulatory Commission and the notional tariff of Rs. 5.5 per kWh. The project
developer will sign a PPA with the concerned State utility. The draft guidelines for the
scheme have been discussed with the project developers and other stakeholders, but not
finalized as yet.
Under the Mission, as yet no PPA has been signed for any solar power project.