13,200 cr worth projects to be bid under national solar mission

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Rs 13200 cr worth projects to be bid under national solar mission

Under the Phase II of the JawaA?harlal Nehru National Solar Mission, the Ministry of New and Renewable Energy plans to award solar power projects worth 1,650 MW in 2013-14. An investment of about 13,200 crore will be required for this.

To encourage buyers (elecA?tricity distribution companies) to purchase solar power the MNRE has proposed three meaA?sures bundling (or, combinA?ing selling of solar power with that of power from conventional sources, so that the weighted average price is not high), viabilA?ity gap funding (VGF) and genA?eration-based incentive.

According to sources, 800 MW of capacity will be bid out under the bundling route and another 750 MW under VGF. It must be noted that under VGF, a selling tariff is first fixed and the developers who require the least amount of funding from the government in order to be viable at that tariff are given funding. Another 100 MW is proposed to be develA?oped through rooftop and small solar programmes.

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