The Ministry of New and Renewable Energy (MNRE) has proposed amendments to the guidelines for implementation of the Viability Gap Funding (VGF) program, reducing the minimum project size of special category states and union territories to 5 MW. The previously allowed minimum project size was 10 MW. The new amendment will not apply to bids that have already been opened by Solar Energy Corporation of India.
Under the VGF program a total of 7,000 MW of grid-connected solar is expected to be installed; 2,000 MW is to be installed under the National Solar Mission (NSM) Phase-II Batch-III, and 5,000 MW under the NSM Phase-II Batch-IV.
New amendment is open for comments until February 28, 2017. Most of the special category states and union territories have unique topographies making it difficult to construct large scale projects, hence the reduction in minimum project capacity for those states and union territories, stated an official at MNRE.
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Raj Prabhu is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.
